Digital Innovation Could Push Development of Sharia Finance

Makassar, South. Sulawesi, MINA — A Finance Ministry official said innovation of services in digital economy could lead to development of sharia economy in this southeast Asia`s largest economy.

One innovation that supports development of sharia economy is utilization of financial technology (Fintech) to get access to financing , Antara News quoted head of the Fiscal Policy Body of the Finance Ministry Suahasil Nazara as saying here on Wednesday.

Suahasil said currently sharia economy could be made a reality in this world`s largest Muslim country, where demand for sharia instruments is high.

“Fintech has expanded in various types of ideas and creativity to facilitate the process of banking intermediacy . However, we have yet to discuss this as we want to ensure that Fintech would meet the sharia compliance,” he said.

Suahasil said currently many types of Fintech, offer conventional financing service, but the number of types of sharia Fintech that give the sharia financing service recorded in the Financial Service Authority (OJK) is very small.

Therefore, sharia business process still need intensive socialization to give Fintech players greater understanding to prevent misunderstanding which would hurt the people, he said.

He said coordination with related institutions such as MUI and OJK is also very important to improve literacy in sharia financing in Indonesia, which is still low .

“MUI could issue a binding ruling in line with the principle of sharia law but from the point of view of OJK, banking products also need control that the they would hurt the consumers,” Suahasil said.

With the various attempts , he said he was confident sharia financing industry has potential market in the country especially with the support of innovation of digital technology such as Fintech, he said.

“We want to say to the business world, that there is market with demand. Therefore, we want to push not only for sharia compliance of Fintech service but also conventional service as an alternative by encouraging business process and consumer protection,” Suahasil said. (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)