Sharia-compliant fintech can actively spur on economic recovery: Amin

Sharia-compliant fintech can actively spur on economic recovery: Amin

Vice President Ma'ruf Amin during a teleconference session with the board of commissioners and directors of PT Fintek Karya Nusantara / LinkAja at the vice president's official residence in Jakarta, Monday (10/8/2020). (Asdep KIP Setwapres)

We are optimistic that this (sharia fintech) would help to accelerate recovery of the national economy that is currently declining due to the spread of COVID-19. As is known, our economy contracted by 5.32 percent in the second quarter
Jakarta (ANTARA) - Vice President Ma'ruf Amin expressed belief that sharia-compliant financial technology (fintech) can play an active role in expediting the nation's economic recovery.

"We are optimistic that this (sharia fintech) would help to accelerate recovery of the national economy that is currently declining due to the spread of COVID-19. As is known, our economy contracted by 5.32 percent in the second quarter,” Amin noted in a statement received in Jakarta, Tuesday.

However, the quite high market potential and players of domestic sharia economic activities should be accompanied by adequate literacy skills pertaining to the Islamic economy.

Consequently, technology-based financial services must be able to capitalize on such opportunities to draw public interest.

"In addition to the sufficiently large market potential, the increase in Islamic literacy is also expected to attract the public's interest for greater use of the Islamic economy," he noted.

Based on data from the Central Statistics Agency (BPS), Indonesia’s economy contracted, with negative growth recorded for the first time since the first quarter of 1999. This was caused by negative national economic growth, with a 5.32-percent slide in the second quarter of 2020.

This figure veers slightly from the government's projected shrinkage in the second quarter of 2020 in the negative territory of 5.08 percent to 3.54 percent, with a midpoint of minus 4.3 percent.

The national economic slowdown became apparent since the first quarter of 2020, growing 2.97 percent in the wake of the COVID-19 pandemic in Indonesia.
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