REPUBLIKA.CO.ID, JAKARTA -- Head of OJK's Sharia Banking Department Deden Firman affirmed that sharia banking consolidation has the goal of strengthening an effective, healthy, efficient, competitive Islamic banking ecosystem, and providing support capacity for the national economy.

This, explained Deden, is in accordance with the mandate of Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (P2SK), which is set out in article 68 paragraph 2.

“In the P2SK Law, it is already mandated regarding the development and strengthening of the sharia financial industry, one of them through consolidation,” Deden said during a discussion with Forwada in Jakarta, Friday (24/8/2024).

As a follow-up to the Act, Deden said that OJK has published Financial Services Authority Regulation (POJK) No. 12 of 2023, which includes, among other things, a policy on consolidation.