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Photo by Aldi Fauzan via Wikimedia Commons. No other edits were made except for cropping of the photo. Source: https://commons.wikimedia.org/wiki/File:Bank_Indonesia_di_Daerah_Istimewa_Yogyakarta

Indonesia’s Islamic financing to expand by 10% -12% in 2024: deputy gov

Indonesia’s sharia economy and finance maintained positive growth in 2023. 

Islamic financing disbursed by sharia banks in Indonesia is expected to grow between 10% to 12% in 2024 compared to a year ago, a central bank official said.

Speaking at the launch of the Indonesia Sharia Economic and Financial Review (KEKSI) 2023, Bank Indonesia (BI) deputy governor Juda Agung shared that Indonesia’s sharia economy and finance maintained positive growth in 2023. Key sectors include the Halal Value Chain (HVC), which posted 3.93% growth.

Major HVC sectors supported almost 23% of the national economy, the deputy governor added.

This enabled Indonesia to break into the top three of the State of the Global Islamic Economy (SGIE) rankings.

Deputy Governor Juda Agung also restated Bank Indonesia's commitment to development of the sharia economy and finance to support economic growth, with one program aimed at strengthening commercial finance and Islamic finance.

ALSO READ: New loans in Indonesia to moderate in Q1: survey

BI also plans to deepen the sharia money market through Bank Indonesia Sukuk (SukBI) and Bank Indonesia Forex Sukuk (SUVBI) instruments. 

KEKSI 2023 describes the development milestones and strategies for the sharia economy and finance in 2023, as well as the outlook and development policy direction for 2024, Indonesia’s central bank said in a press release. 

The KEKSI 2023 launch coincided with the National Seminar on the Sharia Economic and Financial Outlook (ShEFO) 2024, where leaders discussed the challenges and opportunities in the Islamic finance sector and priority sectors of the sharia economy and finance to strengthen national economic resilience and revival.  

Leaders and representatives from PT. Bank Syariah Indonesia (BSI), Indonesia Sharia FinTech Association (AFSI), Indonesian Economist Association (ISEI), National Islamic Economy and Finance Committee (KNEKS), Indonesia Muslim Entrepreneur Community (KPMI), Indonesia Fashion Chamber (IFC) and Indonesia Muslim Friendly Tourism Association (PPHI) also participated in the seminar as speakers. 

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