The Contribution of Islamic Banking in Developing the Halal Food Industry to Advance Economic Development in Indonesia
DOI:
https://doi.org/10.20414/icfbb.v2i1.56Keywords:
Islamic banking, Halal industry, Economic developmentAbstract
Purpose — This paper aims to find out in depth how the role of Islamic banking performance in economic development in Indonesia, especially in advancing the halal industry in Indonesia.
Method — Qualitative literature analysis approach , namely literature review method. This method is carried out by reviewing previous studies such as books, journals, theses and so on and then analyzing how the role of Islamic banking in the halal industry and in increasing economic growth in Indonesia.
Result — A report from OJK that in 2020 Islamic financial assets grew by 22.71% (yoy) to Rp. 1,801.40 trillion from the previous year of 1,468.07 trillion. The potential of the halal food industry in 2023 will reach USD 1.8 trillion in line with the increasing number of Muslim population in the world which has now reached 1.84 billion or around 24.4% of the world's population.
Novelty — Indonesia has great potential in developing the halal industry in the world. Considering that Indonesia has a majority of Muslim population. Seen in the total financing of Islamic banking contributes greatly in advancing the halal industry.
