REPUBLIKA.CO.ID, JAKARTA -- Indonesia Financial Services Authority (OJK) stated the Islamic finance industry grows along with the literacy. Chief Executive Officer of the Supervisor of Conduct of Financial Services Enterprises, Education and Consumer Protection of the Financial Services Authority (OJK) Friderica Widyasari Dewi said, the total assets of the sharia finance industry have reached Rp 2,500 trillion or 152,4 billion USD as of December 2023.

“As of December last year, the total assets of the sharia finance industry have reached Rp 2,500 trillion,” Friderica said at the launch event of Indonesia Sharia Financial Olympiad (ISFO) 2024 in Jakarta on Monday (24/6/2024).

Friderica said the assets of the sharia financial industry consist of the sharia banking sector of Rp 892 trillion, the Islamic Non-Bank Finance Industry (IKNB) of Rp 156 trillion, and the sharia capital market sector of Rp 1,500 trillion.

According to data from the National Committee for Sharia Economics and Finance (KNEKS), the contribution of sharia enterprises and sharia financing to the gross domestic product (GDP) is about 46 percent. This shows the real role of sharia finance as one of the supports of the Indonesian economy.

The existence of Indonesia's sharia finance in the global arena continues to be recognized, reflected by several increases in global indices, including Indonesia's sharia finance taking third place based on Islamic Finance Development Indicator and Cambridge Global Islamic Finance Report as well as seventh position for Islamic Finance aspect on Global Islamic Economic Indicator, competitive with other countries such as Malaysia and Saudi Arabia.

“This achievement is the result of the work of all of us, be it from the government, ministries/institutions, OJK, Bank Indonesia of course KNEKS, then the Indonesian Ulama Assembly, associations and all other stakeholders, the Indonesian Stock Exchange and of course all Sharia financial services business operators,” she said.

Friderica also said sharia financial literacy had risen to 39.11 percent by 2023.

“Sharia financial literacy and inclusion, this is amazing, the result is amazing, yes, the literacy rate we survey every three years is always 9 percent, Alhamdulillah in the last year it has reached 39.11 percent,” Friderica said in Jakarta.

At the launch event of Indonesia Sharia Financial Olympiad (ISFO) 2024, he stated the achievement based on the results of the National Survey of Financial Literacy and Inclusion (SNLIK) conducted by OJK together with the Central Statistical Agency (BPS).

"It's incredible, the increase is fourfold more. This is something that is very encouraging, but the inclusion has not moved yet,” she said.

According to her, improving literacy and financial inclusion of Sharia among the community including among the younger generation, is a shared responsibility.

“It's our homework how we jointly develop the sharia finance industry that we are both proud of, how later this then becomes more and more beneficial to the Ummah, then this can bring many benefits to all of us,” she said.

Friderica said literacy, education and financial inclusion should be the focus of all parties in providing education to the public about the financial sector.

He also emphasized the importance of educating the young generation to be financially literate, including about Sharia economics and finance, as well as to prepare the younger generation to become the successors of financial services entrepreneurs.

This is done to prevent young people from becoming victims of illegal online lending (pinjol) and fraud in the financial services sector including scam and fraud.

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