Indonesia Islamic Economy Growth Reaches 5.5% at ISEF
Indonesia Islamic economy growth reached 5.5% year on year in the second quarter of 2026, with the halal value chain expanding as Bank Indonesia opened the Indonesia Sharia Economic Festival, or ISEF, in Jakarta.
The central bank presented the figure on 14 October at the 13th ISEF, positioning the five-day event as a forum for developing halal-industry supply chains, deepening Islamic financial markets and widening inclusion through digital tools. More than 1,000 halal-industry participants are expected at the event, which runs from 14 to 18 October at the Jakarta International Convention Center.
Indonesia Islamic economy growth reaches 5.5%
The 5.5% expansion in the halal value chain gives policymakers and businesses a current indicator of momentum across the sector. Bank Indonesia said the result reflects the breadth of activities linked to halal goods and services, from food and modest fashion to finance and tourism.
For companies, the significance lies in the ecosystem rather than a single product category. ISEF’s programme includes business matching for trade and traditional textiles, forums for Islamic boarding-school businesses, and discussions on halal industries, zakat, waqf, hajj financing and Muslim-friendly tourism.
Green sukuk illustrate the financing base
Bank Indonesia also pointed to Indonesia’s green sukuk record as an example of the market infrastructure behind Indonesia Islamic economy growth. Since 2018, the country’s sovereign green sukuk issuance has reached US$7.7 billion in international markets and Rp108.9 trillion in the domestic market as of June 2026, according to the central bank.
Green sukuk are Sharia-compliant instruments used to finance eligible environmental projects. Their issuance does not by itself measure growth in consumer-facing halal industries, but it demonstrates the scale of Islamic-finance instruments available alongside efforts to build the real-economy value chain.
What ISEF 2026 is testing
This year’s festival is being held alongside Trade Expo Indonesia 2026 and includes onsite and online activities, Bank Indonesia said. The bank is also promoting digital initiatives, including immersive technology and a Roblox-based experience aimed at younger audiences.
The immediate test for Indonesia Islamic economy growth is whether events such as ISEF convert participation into durable commercial links, wider standards adoption and deeper financing. The official release makes a broad policy case for the sector, while the 5.5% year-on-year figure provides the clearest near-term measure of its momentum.
Indonesia’s halal ecosystem is also part of a wider regional business conversation. For another perspective on cross-border corporate activity, see S.E.A. Business Post’s report on Malaysian affiliates abroad turnover.
Source: Bank Indonesia, ISEF 2026: “Goodness for All” to Advance Indonesia’s Islamic Economy and Finance, 14 October 2026.
