Indonesia’s Financial Services Authority Outlines Strategies to Improve Competitiveness of Islamic Banking Sector

Indonesia’s Financial Services Authority’s (OJK) Director of Research and Development of Islamic Banking Regulation and Licensing, Deden Firman Hendarsyah has outlined three strategies to boost the competitiveness of the country’s Islamic banking sector, at a webinar entitled ‘Post Pandemic Shariah Economic Potential’ held on the 27th of October 2020.

The first strategy, which entails strengthening Indonesia's Islamic banking capital, includes consolidation between parent conventional banks and subsidiary Islamic banking, with conventional banks providing additional capital to develop subsidiary plans, according to Hendarsyah.

The second strategy involve...