Sharia Finance Sees Promising Future
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The Financial Services Authority (OJK) says that the sharia finance still sees promising future despite the slowing down of global economic growth.
“I’m optimistic on the promising future of the sharia finance industry. However, there will be many challenges and uncertainty,” said Sarjito, OJK Deputy Commissioner for Capital Market Supervision, Thursday, September 29, 2016.
The challenges and uncertainty include the difficulty in expanding the business in a different jurisdiction that gets hit by local regulations and also the interpretation of sharia itself.
Sarjito continued, the other challenge is the weak of the sharia finance management and its governance. “The last one is the lack of human resources that are competent enough and having the adequate capacity in sharia finance,” he said.
The sharia finance industry in Indonesia has shown an unbelievable progress. Based on the report of the Indonesian Islamic Finance, the asset of the sharia finance industry has a 10% growth, and reached Rp617 billion in 2015.
The number has exceeded the conventional finance asset’s growth. The same trend is also seen in other countries that are also developing the sharia finance.
Questions & Answers
Q.What specific challenges does the OJK identify for the sharia finance industry?
What specific challenges does the OJK identify for the sharia finance industry?
The OJK highlights difficulties in business expansion due to local regulations and sharia interpretation, along with weak management, governance, and a lack of competent human resources. These are considered key obstacles for the industry.
Q.How has the sharia finance industry performed recently in Indonesia?
How has the sharia finance industry performed recently in Indonesia?
The sharia finance industry in Indonesia has shown significant progress, with asset growth of 10% reaching Rp617 billion in 2015. This growth rate surpassed that of conventional finance assets within the country.
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