"I believe the future of the Islamic finance industry is promising. Nevertheless, there are still many challenges and uncertainties," said Deputy Commissioner of the Securities and Exchange of the OJK Sarjito, when the International Islamic Finance Conference met here on Thursday.
There are also challenges and uncertainties, such as the difficulty of developing business in different jurisdictions due to local regulations and also the interpretation of the sharia.
In addition, he said, other challenges include the weakness and vulnerability of the management and governance of Islamic finances.
"Lastly, there is a lack of human resources that are competent and have sufficient capacity in Islamic finance", Sarjito said.
The Islamic finance industry in Indonesia has shown remarkable development. Based on the Report of Indonesia Islamic Finance, Islamic finance industry assets grew 10 percent in 2015, reaching Rp617 trillion.
This growth is outpacing the growth in conventional financial assets. The same trend is also happening in other countries that develop Islamic financing.
However, after experiencing growth of double-digits in previous decades, some economists predict the growth of the Islamic finance industry is likely to slow in 2016, due to slowing growth in the world economy, political uncertainty, oil, declining commodity prices, and fast paced changes in the global regulatory framework.(*)