Sharia Financial Market Share Only 10 Percent, Vice President: There Are Many Devils in Sharia Banks

Vice President Amin emphasized that sharia economics should be an obligation because it is in accordance with Allah's way. "There are a lot of devils in sharia banks, right? That's why now the market share is still 10 (percent), not yet increasing. Because of this, the devil was made to doubt. Aah, it's the same, there's no difference between Islamic banks and conventional banks," added Vice President Amin.

Also read: Market Share Only 5.3 Percent, Vice President Encourages Optimization of Sharia Insurance Industry

From its history, the development of sharia economics in Indonesia began with the sharia financial sector, especially sharia banking. The movement to socialize sharia economics was intensified in the 2000s. In 2020, the government started to develop sharia economics with four main focuses, namely the financial industry, halal industry, sharia business, and sharia social institutions.

Progress of sharia

Nowadays, the Islamic finance sector has grown rapidly, starting from the Islamic banking industry, Islamic capital markets, Islamic insurance, to Islamic pawnshops. The progress of Islamic banking can be seen from the establishment of PT Bank Syariah Indonesia, the transformation of Shariah Regional Development Banks, the presence of Islamic Rural Banks in various regions, and the development of Islamic PPP financing schemes.

The Vice President asserts that Islamic banking is not just a business, but also a matter of economic jihad. Islamic banking is also believed to be the anchor of Islamic economy that can drive the Islamic economy. Therefore, Islamic banking is expected to optimize economic growth and give birth to a new economy.

Especially to ward off the influence of satanic issues that always get in the way.

In that occasion, Vice President Amin also provided some directions for the development of the sharia banking industry. The directions, among others, are for sharia banking to improve its resilience and competitiveness. Sharia banking is also requested to enhance the capacity and quality of human resources, as well as accelerate the digitalization of the sharia banking industry.

The contribution of Islamic banking to the national economy also needs to be boosted. In addition, an effective, innovative, and sustainable public communication strategy is needed to accelerate the improvement of both literacy and inclusion. "Especially to counteract the influence of devilish issues that always hinder progress," said the Vice President.

In his speech, General Chair of the Indonesian Sharia Bank Association, Hery Gunardi, said that currently the national sharia banking industry has shown positive growth. In February 2024, sharia banking assets and financing grew double digits on an annual basis, even higher than the growth of national and industrial banking.

Also read: Sharia Banking Needs Incentives

"This growth had an impact on increasing the market share of sharia banking assets to 7.33 percent, DPK increased to 7.87 percent, for financing, which was very encouraging, to 8.11 percent in the same period. "Meanwhile, the potential for the halal industry in Indonesia is still very large, reaching IDR 4,253 trillion," he added.

Hery affirms that efforts to advance the Islamic economy require the support of all stakeholders. Asbisindo, which currently includes 11 Islamic commercial banks, 8 Islamic business units, and 174 Islamic microfinance banks, for example, is determined to optimize the potential of the Islamic economy to realize Indonesia as the center of the world's Islamic economy.