JAKARTA - REPUBLIC OF INDONESIA - The annual report on Islamic banking and finance from the 2019 Global Islamic Finance Report (GIFR) put Indonesia in the first position. This is not enough because the Islamic economy is considered to be integrated between Islamic finance and the halal real sector.
Responding to these achievements, according to Afdhal Aliasar, Director for the Development of Sharia Economics and the Halal Industry of the National Committee for Islamic Finance (KNKS), this achievement is in line with Indonesia's improvement in enhancing the Islamic financial ecosystem and sharia economy.
"The government is very aware that the Islamic financial sector must be integrated with the sharia economy and the halal industry," Afdhal said when contacted by Republika, Sunday (20/10).
According to him, currently the KNKS, through the Directorate of Sharia Economic Development and the Halal Industry, has synergized integration across economic sectors.
He hopes that stronger and more focused government agencies will be present to handle the development of the halal industry and the sharia economy.
"God willing, this strong commitment in the future will produce good results for the development of the national economy," said Afdhal.
He acknowledged that the biggest challenge was increasing the Islamic financial and economic literacy of the community and ministries and institutions (K / L). It is hoped that with a good understanding by all stakeholders, other technical challenges will be resolved more easily and quickly.
KNKS believes that a strong commitment can strengthen the trust of investors or business people.
"It's not the time for us to make grandiose promises, but God willing, hard work in the future will show results, gradually and surely," he said.
He gave an example, Indonesia's achievement in being ranked first in the GIFR shows that a large country is able to appear confident in the international arena. Innovation is important so that other countries see Indonesia as a reference for the development of the world's sharia economy.
In the future, it is hoped that Joko Widodo's second term will encourage commitment to the Indonesian Sharia Economic Master Plan and execute the development plans in it.
An observer of sharia economics from the SEBI College of Islamic Economics, Azis Budi Setiawan, said that Indonesia's achievements in GIFR show the results of improvements in government policies, such as the formation of the KN KS and the launch of the Indonesian Sharia Economy Plan.
Moreover, the Islamic social finance sector is also integrated by involving Baznas and the Indonesian Waqf Board.
However, according to him, the acceleration of the sharia financial ecosystem and the sharia economy has not been accelerated significantly. This can be seen from the context of the growth of Islamic banking which is still around six percent, which means that it is far from the Muslim population in Indonesia.
"The number of Islamic banking account holders is still 20 million to 25 million, whereas the existing accounts in the banking sector are 230 million," said Azis.
In the future, it is hoped that related institutions, such as the Financial Services Authority (OJK), Bank Indonesia and the role of religious leaders can encourage public understanding of the Islamic financial ecosystem.
This step is important to take while at the same time encouraging other business sectors so that their capital can use Islamic banking.
"Especially now that the implementation of halal product guarantees is starting to move. The business world then ensures the halal certification so that it will trigger a chain of support processes," said Azis.
Of course, this is homework for Joko Widodo's second term government. Moreover, according to him, at AP BN 2020 the portion of funding that went into Islamic finance was still small. Also BUMN with assets of Rp. 5,000 trillion-Rp. 6,000 trillion, but the position of Islamic finance is still small. "It means the government's role is far from optimal," said Azis. (ed: fuji pratiwi)