Indonesia records 7.83% growth in Islamic banking assets

JAKARTA, Indonesia (MNTV) – Indonesia’s Islamic banking assets grew 7.83% year-on-year to reach 967.33 trillion Indonesia Rupiah ($58.74 billion) as of June this year, reports RRI.

During the same period, national and conventional banking grew 6.40 percent and 6.29 percent, respectively.

“This growth occurred amid global uncertainty, while also opening up great opportunities for Islamic banking to support the domestic economy,” said the Indonesian Financial Services Authority’s (OJK) Chief Executive of Banking Supervision, Dian Ediana Rae, during a meeting with entrepreneurs and the Islamic banking industry in Aceh.

The Islamic banking market share has reached 7.41% of the total national banking sector. 

OJK launched the 2023-2027 Indonesian Islamic Banking Development and Strengthening Roadmap to strengthen this sector. 

This roadmap’s vision is to build a healthy, efficient, competitive Islamic banking sector that contributes to the national and regional economy.

OJK actively organizes annual meetings and develops innovative products, such as Cash Waqf Linked Deposit (CWLD), to meet the community’s inclusive needs. 

This program is being implemented with local administrations to support Waqf City development in Tasikmalaya and Siak Regencies.

Productively managed waqf funds are leveraged for social and economic purposes and sustainably finance micro, small and medium enterprises (MSMEs). Additionally, OJK regularly holds workshops on unique Islamic banking products, focusing on CWLD and istishna’ financing at the Islamic People’s Financing Bank.