Indonesia Slips to Fourth in Global Islamic Economy Rankings, Experts Cite Weak Execution

Indonesia has slipped to fourth place in the Global Islamic Economy Indicator (GIEI) for 2025/2026, a one-position drop from the previous year. The nation now trails Malaysia, the United Arab Emirates (UAE), and Saudi Arabia in the rankings.

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One that dropped significantly was Muslim Friendly Travel. Which was number two, now out of the top five.

This decline is primarily due to a significant weakening in sectors such as Muslim-friendly travel, which fell out of the top five, and halal pharmaceuticals, dropping from second to fourth place. Experts note that other sectors, including Islamic finance, have not shown sufficient growth to offset these losses. Meanwhile, the UAE has made substantial gains, surpassing Indonesia in the rankings.

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Halal pharmaceutical which was number two now dropped to number four.

Academics emphasize that Indonesia's lower position highlights a critical need to strengthen policy execution in its sharia economy development. Despite having a large Muslim market, the country is not optimally leveraging opportunities in halal product production and export. Many non-Muslim nations are leading the global halal supply chain, benefiting more than Indonesian producers.

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Islamic finance and other sectors have not shown significant improvement.

To reclaim its standing, Indonesia must enhance coordination and institutional frameworks for its sharia economy. The goal is to bolster the real sector, the halal industry, and national halal exports, transforming Indonesia from merely the largest market into a primary producer in the global halal economy. Challenges in logistics, financing, and integrating the halal value chain must be addressed to create a more cohesive ecosystem.

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The UAE has risen drastically this year compared to Indonesia.