Friday, 30 October 2020 | 20:43 WIB

Assets of Sharia Financial Industry Reach IDR1,133 Tln in 2017

Illustration: Financial reports.

JAKARTA, NNC - Chairman of the Board of Commissioners of Financial Services Authority (OJK) Wimboh Santoso said the growth of sharia financial industry in 2017 is higher than that of conventional financial industry. Indonesia's total Islamic financial assets (excluding Sharia Equities) posted 27 percent growth to IDR1,133.23 trillion at the end of last year.

"This is higher than the growth of the conventional finance industry. In fact, the market share of Indonesia sukuk reaches 19 percent of all sukuk issued by various countries," Wimboh said in his speech after being inaugurated as Chairman of Islamic Economic Society (MES) in Jakarta last weekend.

In a press release released by OJK on Monday (3/26/2018) Wimboh explained the growth of sharia industry assets shows Indonesia has a lot of potential to develop sharia economy and finance so much more that it contributes to encourage economic growth and improve the welfare of the community.

However, according to Wimboh, sharia financial growth is not optimal because the institutional is still not strong in facing various pressures from external as well as to spur its growth. "Various programs must continue to be built in a sustainable manner such as increasing the financial literacy or level of public understanding of Islamic financial services products," he said.

Meanwhile, the results of OJK survey in 2016 showed that the level of literacy and public inclusion of sharia finance products was still low, that is only 8.11 percent, with the level of Islamic banking literacy of 6.63 percent, Sharia Insurance 2.51 percent, and Sharia Capital Market 0.02 percent.

Wimboh said one of the MES programs in the future is to support the development of Micro Waqf Bank program, as well as to play a role in the development of halal industry. "I hope MES can be a motor development of Micro Waqf Bank with Sharia LKM [Micro Finance Institution] platform based on pesantren [Islamic boarding school]," he said.

Wimboh also hopes that MES will continue to contribute greatly to the development of halal industry sector, such as: fashion industry, Muslim fashion, halal food, pharmacy, to tourism sector, and optimization of religious social fund such as pilgrimage fund, zakat fund, waqf fund, infaq funds, and alms as stated in the National Work Program and Outlines of Organization Works (GBKO) resulted from MES Fourth National Meeting.

Wimboh Santoso was inaugurated as Chairman of the Islamic Economic Society or MES for period 2018-2021 replacing Muliaman D Hadad whose term of office has ended.