President Joko Widodo asked the National Committee on Sharia Finance to take measures in developing the high potential of sharia economy in Indonesia. On opening of the Plenary Meeting of the Committee on Monday at the Presidential Office in Jakarta, the President said the development of Sharia economic potential should be aimed at becoming the main driver of the national economy. In addition, according to him, the development of sharia financial industry should also be aimed at encouraging productive development. The President also hopes the National Committee of Sharia Finance to expand the Islamic Micro Finance Institution at boarding schools in Indonesia. In addition, the President also highlighted the importance of zakat and waqf management reform to be able to overcome the poverty and to suppress inequality.
"I want to emphasize that in the development of sharia economy we should not only become the target market and industrial products of other countries and consumers. With the huge market potential in our country, we must be the main driver of sharia economy. In addition, the development of Islamic finance industry must be really beneficial for productive things including supporting efforts to reduce poverty in order to suppress the number of inequality" the President said.
As a country with the largest Muslim population in the world, Indonesia has enormous potential to develop the financial and economic sectors of sharia. President Joko Widodo mentioned that in the sharia financial industry sector, sharia banking assets continue to increase in 2017, reaching 435 trillion rupiah or about 5.8 percent of the total banking assets of Indonesia. And so does the syariah capital market where the market share of Sukuk Indonesia reached 19 percent of all sukuk published by various countries.
In addition, total assets of the non-bank Islamic financial industry have also doubled in the last 5 years. According to the President, Indonesia also has enormous potential in collecting religious social funds, such as pilgrim funds, zakat funds, waqf funds, as well as funds of infaq and alms. Some sectors of Islamic economics that can be developed include the fashion industry, Muslim fashion, halal food industry, pharmaceutical industry and also the tourism sector./// (VOI/Andy/AHM)