The Financial Services Authority (OJK) have released the 2022 Indonesian Sharia Financial Development Report (LPKSI), which shows that the Islamic finance industry’s assets stood at IDR 2,375.84-trillion at the end of last year, up by 15.87-percent from 2021’s position, according to Tempo.
The report, with the theme of ‘Empowerment of Islamic Economic Ecosystems and Digitalization to Strengthen Islamic Finance in Supporting National Economic Resilience’, stated that throughout 2022, Indonesia’s economy was resilient amidst an ongoing post-pandemic recovery, reaching a Gross Domestic Product (GDP) of 5.3-percent.
“From the perspective of Indonesia’s Islamic economy and finance, both Islamic banking, Islamic capital markets, and the Islamic Non-Bank Financial Industry (IKNB), have proven their resilience in adaptation strategies that are able to bring optimism in getting through the pandemic,” the report said.
Tempo report that the report also showed that the Islamic capital market accounted for the biggest portion of Islamic financial assets with 60.08-percent, recording a growth of 15.51-percent Year on Y (YoY), faster that 2021’s growth rate of 14.83-percent (YoY).
OJK say that “Sharia economics and finance in Indonesia is increasingly being reckoned with internationally. In the midst of the post-pandemic recovery period, Indonesia was able to maintain its 3rd place on the Islamic Finance Development Indicator 2022, making it one of the best countries in managing Islamic finance and economy.”
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