he sharia economy could become the “new wave” of Indonesia’s economy and strengthen the country’s economic resilience, Vice President Ma’ruf Amin has said.

He cited a Boston Consulting Group (BCG) estimate that there were 64.5 million middle-class Muslims in Indonesia in 2020. This presents a huge opportunity for sharia finance, as they will need to have options of halal products and sharia-compliant financial services to fit their lifestyle and principles.

Ma’ruf also believed that the sharia economy could have a huge potential in strengthening national economic resilience and improving public welfare.

“That said, I think it’s appropriate to call the sharia economy the new wave for Indonesia’s economy,” he said during the Jakpost Up Close webinar “Sharia finance gaining momentum in Indonesia’s economic recovery” on Wednesday.

Despite having the largest Muslim population of any country, Indonesia’s sharia financial literacy rate was only 8.93 percent in 2019, Financial Services Authority (OJK) data show. Moreover, the sharia finance market share was less than 10 percent of Indonesia’s overall financial industry in July.

Although the government has shown its commitment to developing the sharia economy through the issuance of a presidential decree on the National Committee for Sharia Economy and Finance (KNEKS) earlier this year, Ma’ruf admitted that, at its current state of development, the sharia economy was still far from its full potential.

Popular

PISA gains belie Indonesia’s persistent education crisis

Not the Ministry of Magic

Suahasil seen to prioritize fiscal discipline, continuity