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BI eyes 20 percent market share for sharia finance by 2023
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Bank Indonesia Governor Perry Warjiyo (Antara/Puspa Perwitasari)
Bank Indonesia (BI) plans to see the market share of sharia finance rise to 20 percent by 2023 from its current share of 8 percent.
“The market share of sharia finance was long stuck at 5 percent, but with developments in various sectors in addition to sharia banking, like the issuance of sukuk [sharia bond] and other instruments, its share now touches 8 percent,” said BI Governor Perry Warjiyo in Surabaya, East Java, on Monday.
Perry said the 20 percent market share target could be reached through diversifying sharia financing instruments in the banking sector, the stock market and also the social religious sector such as zakat (alms) and waqf (charitable endowment).
The BI governor said that the issuance of sukuk to finance various infrastructure projects in the country had also helped boost the market share of sharia finance.
“Diversifying sharia financing instruments to finance economic development would help the sharia economy grow in the next five years,” said Perry at a press conference on Indonesia’s Sharia Economy Festival as quoted by kompas.com.
The central bank would soon issue the sharia financing instrument Sukuk Bank Indonesia to provide alternative financing in the sharia financial market, said Perry.
He said the sukuk could be traded again to become a short-term solution for banking liquidity in addition to existing sharia financing instruments like Sharia Certificate Bank Indonesia (SBIS), Bank Indonesia Sharia Facility (FASBIS), reserve repo sharia and repo SBSN. (bbn)
