IslamicFinance.de

The total assets of the #Indonesian sharia banking industry in the third quarter of 2016 reached Rp331 trillion, accounting for 5.13% of the national banking industrys assets. Lukdir Gultom, Chief of the Indonesian Financial Service Authority (OJK), said the actual figure outstrips the target set by the OJK at 5%. He added that the OJK continued to encourage the sharia compliant financial service industry covering banks, non-bank financial institutions and the capital market. To date, Indonesia has a total of 13 sharia commercial banks, 21 sharia business units, and 165 sharia rural banks. The OJK will try to increase their number. Having a Muslim majority population, North Sumatra has the potential to become a hub for the Indonesian sharia banking industry.

In #Indonesia the Financial Service Authority (OJK) is seeking to boost Islamic financial products growth through better access to the financial service industry. According to OJK Commissioner Council member Firdaus Djaelani, better access to financial products will ease service delivery, lead to the affordable price, as well as to other benefits. The market share of Islamic finance in Indonesia is still low at 5.3%. However, Firdaus is optimistic that Islamic finance industry has a huge potential. He believes that people need to participate in enhancing market share of Islamic finance industry, including through engagement in the Islamic Economic Society (MES). The better understanding of Islamic financial products will open up access to financial institutions. Better access for the people and SMEs will also provide a sense of security in financial investment.