Islamic Finance is Potential to Strength Economic Structure in Indonesia

Jakarta, MINA – The Deputy Governor of Bank Indonesia (BI) Erwin Rijanto has said, that Islamic finance needs to be improved in line with the uncertainty of the global economy in recent month which is the result of rising the US interest rates.

According to Erwin, the development of Islamic economics and finance is needed to support the sustainable economic growth. This development aims to strengthen the economic structures and financial markets in Indonesia.

“Indeed, BI is no longer an authority for Islamic finance. But BI still has a role to push it, for example, yesterday we tried to push what we call corporate endowments, “Erwin said in a discussion at the Indonesian Parliament Building, Jakarta, Wednesday (19/9).

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Erwin said, there are social-based sources of payment for economic development, so it is not debt-like, such as waqf and zakat, which have great potential. However, said Erwin, because there is no standard, the potential cannot be utilized.

“By default (Islamic finance) does not yet exist. So we cannot use the great potential maximally, “he said.(LT/R04/RS5)

Mi’raj News Agency (MINA)