Indonesia’s Islamic Finance Industry Saw Growth During the COVID-19 Pandemic 

The Islamic finance industry in Indonesia saw positive growth even during the COVID-19 pandemic. This was most evident by the increase in third-party funds and financing channelled to the public.

Why it Matters?

Nyimas Rohmah, Director of Regulation and Licensing of Shariah Banking at the Financial Services Authority of Indonesia (OJK), remarked that the assets of the Islamic finance industry had grown to IDR 2,000 trillion as of July 2021, excluding the Islamic stock industry. This takes the market share of the Islamic finance industry to 10.11% of the total national financial industry. This, however, reduces to 6.59% when considering its share of the banking industry. It was revealed that the collection of third-party funds for Islamic banking had...