Indonesia’s Islamic Finance Industry Inclusion Trails Far Behind Conventional Counterparts: Financial Services Authority

Head of the Financial Literacy and Inclusion Department of Indonesia’s Financial Services Authority (OJK), Kristianti Puji Rahayu, stated that whilst Islamic literacy in the country had gone up from 8.11% to 8.93%, Shariah inclusion had declined from 11.1% to 9.1%. These metrics lagged far behind conventional comparisons.

Speaking at a webinar on the 9th of October 2020, Rahayu identified several strategies established by the OJK to encourage improvement in these indices going forward. One such strategy he noted was to adopt a habit of saving from an early age, as per Indonesia’s President Jokowi.

Given the issuance of government regulation (POJK Number 76/POJK.07/2016)...