Jakarta (ANTARA) – Indonesia’s Financial Services Authority (OJK) is committed to reinforcing Islamic financial institutions to support the growth and enhancement of Islamic financial and economic literacy, according to Deputy Chief of OJK’s Board of Commissioners, Mirza Adityaswara.
“OJK will persist in fortifying Islamic financial institutions by prioritizing product superiority and differentiation,” Adityaswara emphasized during the “Financially Independent with Islamic Financial Products” webinar, which was attended virtually on Thursday.
To accelerate the growth of Islamic finance in Indonesia, the OJK has devised policies under multiple roadmaps and masterplans relating to the Islamic banking sector, the Islamic capital market, and Islamic people’s financing banks.
One of the key initiatives by OJK in bolstering the development of Islamic finance in Indonesia is strengthening Islamic financial institutions. This effort has been supported by enhancing human resources and information technologies and fostering ecosystem synergies and interconnections in Sharia finance.
“The Islamic financial services sector has become one of the priority targets for financial inclusion in 2023,” Adityaswara added.
In addition, the OJK is actively collaborating with relevant ministries and agencies to advance Indonesia’s Islamic finance sector, including joining the National Committee for Islamic Economy and Finance (KNEKS).
Adityaswara pointed out that the growth of the Islamic finance sector must also prioritize enhancing Islamic economic and financial literacy to ensure business continuity. Islamic economic and financial literacy has been identified as one of the significant challenges in the Islamic finance sector.
Based on a national survey on financial literacy and inclusion conducted in 2022, Indonesia’s Islamic financial literacy was 9.1 per cent. Meanwhile, according to Bank Indonesia (BI), the Islamic economic literacy index stood at 23.3 per cent in 2022.
These achievements lag behind the national financial literacy index, which has reached 49 per cent.
The OJK encourages people to expand their knowledge of Islamic finance as an alternative in the financial ecosystem, highlighting that the Islamic finance sector offers a halal financial system free from riba (interest) and embodies social values.
Islamic finance also catalyzes enhancing people’s well-being through the provision of interest-free financing and the distribution of social funds such as zakat (alms), infaq (voluntary charity), sadaqah (simple donations), and waqf endowment.
By increasing public awareness and understanding of Islamic finance, the OJK aims to create a more inclusive financial environment that caters to the diverse needs of the Indonesian population. This will contribute to the development of the Islamic finance sector and provide a more equitable distribution of resources and economic opportunities for all citizens.
Moreover, the OJK is working diligently to ensure that the necessary infrastructure, regulations, and support systems are in place to facilitate the growth and adoption of Islamic finance in Indonesia. These efforts, in conjunction with increased financial literacy, will help foster a more robust and sustainable Islamic finance sector that can contribute significantly to the nation’s overall economic growth and well-being.
In conclusion, the OJK’s commitment to strengthening Islamic financial institutions and improving Islamic financial literacy is crucial to achieving financial inclusion and fostering economic development in Indonesia. By prioritizing product superiority, differentiation, and collaboration with relevant stakeholders, the OJK aims to ensure the sustainable growth of the Islamic finance sector and its contribution to the country’s overall prosperity.
Social Media’s Impact on Halal Products & Services Promotion
Leave a Reply
You must be logged in to post a comment.