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Jakarta Post

Sharia finance thrives despite pandemic, to further grow in 2021: OJK

  • Adrian Wail Akhlas

    The Jakarta Post

Jakarta   /   Wed, January 20, 2021   /  03:13 pm
The Jakarta Post Image
Digital sharia service: A Bank Syariah Mandiri employee serves a customer at the lender’s Central Jakarta office.(JP/Wendra Ajistyatama)

Indonesia’s sharia finance has thrived despite the coronavirus pandemic, as its double-digit growths in assets and loan disbursement outperformed those of conventional finance, the Financial Services Authority (OJK) has said, highlighting a growing industry previously plagued by low demand. Sharia finance industry assets grew sharply by 21.48 percent year-on-year (yoy) to Rp 1.77 quadrillion (US$125.31 billion) while loan disbursement increased 9.5 percent last year. That stood in stark contrast to the 2.41 percent contraction in loan disbursement recorded by the conventional financial industry, according to the OJK. “We are confident that sharia finance will do even better in 2021,” OJK chairman Wimboh Santoso told a forum on sharia finance outlook on Tuesday. “The sharia finance industry will grow further, and we will be a world-class player going for...