Indonesia’s Financial Services Authority Urges Islamic Banks to Transform on Several Fronts

The Financial Services Authority in Indonesia (OJK) is pushing for the transformation of Islamic banking in the country. Speaking at the virtual launch of the Islamic Banking Development Roadmap 2020-2025 on the 25th of February 2021, Heru Kristiyana, Chief Executive of OJK Banking Supervision, noted that the domestic Islamic banking industry is subject to several challenges at present.

Why it matters?

The OJK wants every customer choosing Shariah banking to be able to choose better quality products. Current industry challenges include a lack of product differentiation or business models, insufficient and sub-standard quality of human resources, with HR challenges each time there is a change of leadership in Shariah banking. The sector also faces a lo...