Strengthening Sharia Financial Industry, OJK Introduces Interconnection Policy

Fathan Qorib, Robert Sidauruk

The national sharia financial industry is currently in blossom, as it shows a solid 35 percent development per year, much higher than commercial financial industry.

To maintain this robust condition, the Financial Service Authority (OJK) introduces an interconnection policy for sharia products, and provides incentives for businesses that are willing to participate in the sharia industry.

Firdaus Djaelani, Head of Executive Oversight for Non-Bank Financial Service at OJK, says that the main purpose of this policy is to integrate all sharia financial products that are offered to the public.

The policy, Firdaus continues, will consist of two main measures from OJK, namely harmonization and regulation measures. Harmonization focuses in integrating sharia financial products, while regulation measure focuses in regulating newly released sharia products.

“There are several products that related to other products and need to be integrated, such as sharia banking with sharia insurance, and sharia insurance with sharia reinsurance,” Firdaus says in Jakarta on Monday.

In addition, Firdaus explains that regulation measures will focus in new introduced sharia products such as sharia financing, sharia pawnshop and sharia joint venture.

Besides interconnection policy, OJK will also encourage the government to keep developing sharia financial industry by providing necessary incentives. OJK, as Firdaus says, has provided several sharia financial service providers with incentives in form of capital assistance.

Nurson Wahid, lawmaker from Commission XI, says that the penetration of sharia financial industry in Indonesia is yet to reach its ideal level. While having the largest moslem population in the World, Nurson asserts that Indonesia has a relatively low knowledge and awareness on sharia financial products.

Nurson suggests providers in sharia industry to come up with genuine sharia financial products. Such effort may dispel public’s notion that sharia industry is no different with other commercial industry.

“Sharia financial products must be acceptable for everyone,” adds Nurson.

(hot/kc)

Fathan Qorib, Robert Sidauruk

The national sharia financial industry is currently in blossom, as it shows a solid 35 percent development per year, much higher than commercial financial industry.

To maintain this robust condition, the Financial Service Authority (OJK) introduces an interconnection policy for sharia products, and provides incentives for businesses that are willing to participate in the sharia industry.

Firdaus Djaelani, Head of Executive Oversight for Non-Bank Financial Service at OJK, says that the main purpose of this policy is to integrate all sharia financial products that are offered to the public.

The policy, Firdaus continues, will consist of two main measures from OJK, namely harmonization and regulation measures. Harmonization focuses in integrating sharia financial products, while regulation measure focuses in regulating newly released sharia products.

“There are several products that related to other products and need to be integrated, such as sharia banking with sharia insurance, and sharia insurance with sharia reinsurance,” Firdaus says in Jakarta on Monday.

In addition, Firdaus explains that regulation measures will focus in new introduced sharia products such as sharia financing, sharia pawnshop and sharia joint venture.

Besides interconnection policy, OJK will also encourage the government to keep developing sharia financial industry by providing necessary incentives. OJK, as Firdaus says, has provided several sharia financial service providers with incentives in form of capital assistance.

Nurson Wahid, lawmaker from Commission XI, says that the penetration of sharia financial industry in Indonesia is yet to reach its ideal level. While having the largest moslem population in the World, Nurson asserts that Indonesia has a relatively low knowledge and awareness on sharia financial products.

Nurson suggests providers in sharia industry to come up with genuine sharia financial products. Such effort may dispel public’s notion that sharia industry is no different with other commercial industry.

“Sharia financial products must be acceptable for everyone,” adds Nurson.

(hot/kc)

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