Indonesia has Great Sharia Finance Potential: President

• Feb 06, 2018

TEMPO.CO, Jakarta – At the session of National Committee for Sharia Finance, President Joko Widodo (Jokowi) has remarked that the potential of Islamic finance development in Indonesia is very great, considering the country has largest Muslim population in the world. Therefore, he urged related parties to be serious to work on this potential. “I see that this potential shows an improvement,” President Jokowi said in a meeting held at the Presidential Office here on Monday.

According to the President, sharia banking assets continue to increase in 2017 amounted to Rp435 trillion (about US$32.2 billion), or about 5.8 percent of the total assets of Indonesian banks.

In addition, the sharia capital market in Indonesia also continues to improve with market share of sukuk (the Islamic financial certificate) reached 19 percent of all sukuk which are issued by various countries.

The government also noted that non-bank Islamic finance industry assets have doubled since 2013. “We also have enormous potential in the collection of religious social funds such as pilgrims, zakat funds, waqf funds, and alms,” the President said.

He explained that the potential of sharia industry and trade that can be immediately developed among others Muslim fashion industry, halal food industry, pharmaceutical industry and tourism industry.

“We have the highest halal food consumption level in the world,” Jokowi said, adding that the country is the world’s fifth largest market for Muslim clothing, halal medicine and cosmetics.

Halal refers to what is permissible or lawful in Islamic law. It is frequently applied to permissible food and drinks. The Head of State urged all people to become the driving force of sharia economy in the country and also abroad.

Source: https://en.tempo.co/read/news/2018/02/06/056915482/Indonesia-has-Great-Sharia-Finance-Potential-President