Risk sharing concept stresses that risks must be distributed among all sides involved so not only one side will suffer from the risks and the risks will not be heavierJakarta (ANTARA) - Vice President Ma'ruf Amin has stated that risk sharing scheme is a development strategy concept to make the country tough and dynamic.
"Risk sharing concept stresses that risks must be distributed among all sides involved so not only one side will suffer from the risks and the risks will not be heavier ," he said an event "Economic Challenges, Special Ramadhan" broadcast by a private television station on Saturday.
Risk sharing scheme can be seen from insurance, banking, infrastructure development, etc. schemes, he said.
The vice president said a risk sharing concept is applied to development strategy as one of the solutions to shun economic crisis and maintain financial system stability because it can avoid excessive losses.
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"These characteristics are in line with the four main pillars of sustainable development -- social development, economic development, environmental development and legal development and good governance," he said.
The risk sharing scheme also accords with Islamic financial system which emphasizes profit and loss sharing principles, he said.
"Indeed, Islamic economy must be based on the principles of be justice, balance and togetherness," he said.
The Indonesian Vice President also said the government has carried out various efforts to handle the scarring effect as people are afraid to spend and invest their money due to the COVID-19 pandemic.
"Scarring effect is a concern harbored by most economic actors," he noted during "the Economic Challenges, Special Ramadhan" aired on a private television station on Saturdy.
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"This happens in the face of uncertainty because of the pandemic," he added.
To handle this issue, the government encourages financial institutions to continue to distribute credit, especially to priority sectors such as tourism and Micro, Small, and Medium Enterprises (MSMEs).
The government also pushes the business world to utilize digital technology while conducting economic activities.
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Translator: Rangga Pandu AJ, Suharto
Editor: Fardah Assegaf
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