REPUBLIKA.CO.ID, SURABAYA -- Bank Indonesia (BI) highlighted the still low contribution of sharia financing in the banking sector, which accounts for only 8 percent. In fact, until July 2024, sharia financing grew 11.9 percent year on year (yoy) to reach Rp 598 trillion.

“Although sharia financing has grown by 12 percent, the share of banking in total is still relatively small, just 8 percent,” Destry said while speaking at FesYAR Java 2024, Friday (13/9/2024).

Destry said the reason for the low contribution of sharia financing to banking is due to the limited number of sharia-based financial instruments in Indonesia. In fact, the growth potential of sharia economy in Indonesia is very large due to the growing number of Muslims.

Today, there are 235 million Muslims in Indonesia. Not only that, 70 percent of them are young people who are very receptive to digital development.