The commitment and policy initiation of the West Sumatra Provincial Government together with the local government, the community and the business world in developing the Sharia economy was appreciated by the National Committee for Sharia Economics and Finance (KNEKS) in collaboration with Infobank. Yesterday, on behalf of the West Sumatra Provincial Government, I received the 2022 Adinata Syariah Award as an award to the region in driving the Sharia economy, particularly in the development of sharia microfinance.

The traditional philosophy of Basandi Syarak, Syarak Basandi Kitabullah, adat mengato syarak mamakai, provide a strong cultural foundation for West Sumatra to grow and strengthen the application of Sharia economics and finance. Along with the trade and entrepreneurial culture of the Minang people. This cultural capital provides fertile land that needs to be maintained and cared for for germination, growth and strength of the Halal Industry Micro, Small and Medium Enterprises (MSMEs). This is the source of new sustainable economic growth.

Previous initiatives in the form of Lumbung Pitih Nagari, Baitul Maal wa Tamwil (BMT), Sharia Financial Services Cooperatives (KJKS), Sharia Credit Banks, and Micro Waqf Banks and the conversion of Nagari Banks into Sharia Commercial Banks must continue. For the creation of an economic and Islamic finance ecosystem, the existence of Islamic financial services is intended to grow together in a synergistic manner by strengthening MSMEs and strengthening the entire value chain of the halal industry from upstream to downstream.

The strengthening of the value chain of the halal industry has a large multiplier effect for the welfare of society. In the upstream sector, the food industry is supported by the agricultural sector in the form of supply of raw materials from agricultural production such as sweet potatoes, chilies, spices, and livestock meat. All of them involve more than half of the population of West Sumatra who depend on agriculture for their livelihood.

Likewise, the development of the Muslim fashion industry such as embroidery and weaving by the SME craftsmen of Pandai Sikek and Silungkang is an inheritance of tradition and culture. Continuous innovation in design and materials is the key to increasing competitiveness. Not only to face the onslaught of imported textiles and clothing, but also competitiveness in the export market, especially to neighboring countries and the Middle East market.

The large potential of the halal industry MSMEs must be followed by a strategy of providing integrated sharia financing facilities. This strategy places the role of Islamic financial institutions, including strengthening the conversion of Nagari Syariah Banks, to realize equity and mobilize the great potential of MSMEs for community welfare and economic development. The source of financing for the halal industry MSMEs must also come from halal sources, namely Islamic financial institutions.

The great potential of West Sumatra as a National Halal Industry Center was marked by the inauguration of the Proudly Made in Indonesia National Movement (Gernas BBI) by the Vice President on March 12 in Bukittinggi. Accompanied by the opening of a halal hub and the inauguration of Los Lambuang, Bukittinggi as a Halal, Safe and Healthy Culinary Zone (KHAS). Both are the first in Indonesia.

In supporting the acceleration of the fulfillment of halal standards, the role of the West Sumatra provincial government together with the regions as facilitators and regulators is to build good governance. Among the programs and activities that have been included in the 2022 APBD and in the discussion of the 2023 RAPBD are providing incentives for MSMEs and small and medium-sized industries in facilitating halal certificates. The Provincial Government cooperates with the Halal Product Guarantee Agency (BPJPH).

The Government of West Sumatra became the first province to form the Regional Committee for Sharia Economics and Finance (KDEKS) through a Governor Regulation dated April 7, 2022. This committee is tasked with maximizing the economic and financial potential of Sharia in West Sumatra by building synergies and synchronization of various stakeholders in determining the steps, plans and implementation of policies and programs in realizing West Sumatra as a center of Islamic economy and finance in general and a center for the national halal industry in particular. .