Indonesia to make more regional development banks, pension funds Shariah-compliant as it eyes bigger Islamic economy
JAKARTA – Indonesia is in a hurry to increase Islamic financial assets and, under orders from vice president Ma’ruf Amin, the National Committee for Islamic Economy and Finance (KNEKS) will take a progressive approach.
Islamic commercial banking assets stood at 593,948 billion rupiah at the end of 2020, making up 6.47% of the country’s commercial banking assets. In the overall financial industry, Shariah-compliant assets reached 1,802.86 trillion rupiah, equivalent to 9.89% of the sector.
The plan now is to convert more regional development banks to become Shariah-compliant, and provide Islamic pension funds services that are expected to boost the development of the Islamic capital market, Sutan Emir Hidayat, KNEKS director of Islamic economy supporting ecosystem told Salaam Gateway.
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