Effort Needed to Strengthen Indonesia’s Islamic Finance Industry: Financial Services Authority

Indonesia’s Financial Services Authority (OJK) stated recently that although the growth rate of the Islamic financial industry in the country surpassed that of the conventional finance industry in 2020, the market share of Islamic finance in Indonesia’s economy would still not expand sufficiently to exceed 10%, should growth continue at the same pace. The OJK elaborated that there are five key requirements being developed that are needed to make Islamic finance a major player within the country’s economy.

Why it Matters?

Chairman of the OJK Board of Commissioners, Wimboh Santoso, said that the potential for Shariah is huge in Indonesia, as is the demand for it. The Chairman also observed that the majority of Indonesia’s population is at...