STRATEGY FOR STRENGTHENING SHARIA BANKING SUPPORT FOR THE HALAL INDUSTRY IN INDONESIA: SWOT ANALYSIS

Abstract

Islamic banking is part of the Sharia financial industry sector, which has the potential to support the halal industry. To strengthen Sharia banking's support for developing the halal industry in Indonesia, we need to create the necessary ecosystem and implement strategic policies. This study aims to analyze the strengths, weaknesses, opportunities, and threats, as well as strategies for Islamic banking support for the development of the halal industry in Indonesia. This study uses a mixed-methods approach in the form of a sequential exploratory design with a SWOT analysis technique. The study's findings show that Indonesian Islamic banking's strength lies in relatively good asset growth and performance from year to year, while its main weakness lies in the quality of human resources, which is not as expected. This includes having an adequate number of well-educated, experienced, and ethically sound professionals proficient in essential banking operations and committed to upholding Sharia principles. Meanwhile, Indonesia's halal industry and MSMEs present a significant opportunity for Sharia banking as they continue to grow. However, it also faces a significant challenge in the form of conventional banks' strong presence, which hinders its ability to attract large-scale customers. As a result, it is necessary to strengthen Sharia banking funding and management processes, as well as establish a National Halal Fund.