Indonesian Islamic Banking In Mastering The Global Halal Value Chain: Opportunities And Challenges From Economics And Legal Aspects

Abstract

Islamic banking has the ability to survive (durable) in times of crisis, has competitiveness and is efficient in improving the national economy. The commercial aspect of the economy can be seen from the existence of the financial services sector and the halal industry, while in the legal aspect, Indonesia has legal pluralism - the customary law system, the Islamic legal system and the western legal system. The formulation of the problem is How are the steps and strategies for Indonesia so that Indonesian Islamic Banking becomes a leader in the world halal value chain? The method used in this research is normative juridical with quantitative analysis approach. The conclusion of this study is that the position of Islamic banks in the economic system and national legal system has a strong position to become a Muslim country to become a leader in the development of the world Islamic financial market and global halal value chain by utilizing regulatory and policy support that supports the development of a halal value-based economy and Islamic banking and support the development of the world's halal industry that meets the expectations of the community

Halal agriculture as an effort to strengthen the global halal value chain in order to increase international trade

“…Neither party can claim that the food is halal without complying with Islamic law as stipulated in the holy book of the Quran (Amir & Subroto, 2019). In addition, halal vocabulary is not only a reflection of the quality assurance of a product, but also a symbol of a global lifestyle that is trending among the world population (Widuhung & Machmud, 2022). The global market demand for halal products and services has significantly driven the development of halal systems since the early 2000.…”

“…This is also supported by the Muslim population in the world currently reaching 1.6 billion people or 25% of the world's population. There are 56 Muslim-majority countries with GDP reaching 6.7 trillion dollars (Widuhung & Machmud, 2022).…”

Determinant of Murabaha financing in Indonesian Sharia banking: The ARDL and NARDL approach

“…Bank Syariah Indonesia, one of the Sharia banks in Indonesia, is ranked 7th in the Indonesian banking market. Furthermore, Sharia banking in Indonesia is ranked 10th in the world, with assets of USD 38 billion in 2021 (Fitrah, 2018;Khodiron et al, 2022;Widuhung & Machmud, 2022).…”