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Sharia financial products need to keep innovating

25 January 2021 11:48

JAKARTA - Sharia business models and financial products were deemed necessary to keep making breakthroughs and innovations. This was conveyed by Wimboh Santoso, Chairman of Board of Commissioners of Financial Services Authority (OJK), who is also the Chairman of Sharia Economic Community (MES), in a press release quoted on Monday (25/1).

He said that the challenges in sharia financial sector, included market share, sharia financial literacy, and Sharia Financial Inclusion Index (IIKS). The market share of sharia finance industry, Santoso added, was still around 9.90% of total national assets, while Islamic financial literacy was at 8.93% and IIKS was around 9.1%.

"Sharia economic community must increase work programs and activities that are beneficial to support the national economy," stated Santoso.

He further said that they were also expected to actively encourage digital economy and sharia financial technology. This sharia digital platform would later help empowering Micro, Small and Medium Enterprises (MSMEs) sector.

"International institutions emphasised that Indonesia had great potential in the development of sharia economy due to the increase in halal industry, sharia economic growth, and Muslim population of approximately 230 million," explained Santoso. (LK/VA)

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