Expert staff at the Finance Ministry, Arief Wibisono, conveyed the information while sharing the results of the "Indonesian Sharia Economic and Financial Study (KEKSI) 2023" here on Monday.
"The Islamic finance industry in Indonesia continues to increase," he said.
Indonesia's sharia finance assets include the sharia capital market worth Rp1,457.73 trillion (US$93.2 billion), which accounts for 59.44 percent of the total asset value; followed by sharia banking, which accounts for 33.92 percent of the asset value and is worth Rp831.19 trillion (US$53.15 billion); and the non-bank financial industry (IKNB), which makes up the remaining 6.64 percent and is worth Rp162.85 trillion (US$10.4 billion).
Further, the market share of the Islamic finance industry has also continued to increase nationwide.
Wibisono informed that the market share of the sharia capital market has been pegged at 20.52 percent, sharia banking at 7.27 percent, and sharia IKNB at 5 percent.
The positive performance of Indonesia's sharia finance industry has gained global recognition, he said.
He referred to the Global Islamic Economy Indicator (GIEI) data in the State of the Global Islamic Economy (SGIE) Report 2023 released by DinarStandard, a research institution based in Dubai, the United Arab Emirates, which showed that Indonesia's sharia economy rose by one rank to third position after Malaysia and Saudi Arabia.
However, Wibisono said, the ratio of sharia financial assets to national finances is still low at around 10.81 percent.
Therefore, the government is making efforts to boost the national sharia financial industry, especially through Law No. 4 of 2023 concerning the Development and Strengthening of the Financial Sector.
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Translator: Imamatul S, Kenzu
Editor: Rahmad Nasution
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