Islamic Financial Technology Key to Indonesia’s Development

JAKARTA, KOMPAS.com – The National Committee for Sharia Economy and Finance (KNEKS) in Indonesia has projected that sharia-compliant financial technology (fintech) could become the key in the national sharia economic development plan.

Putu Rahwidhiyasa, Business and Sharia Entrepreneurship director at KNEKS, said that sharia-compliant fintech has two significant roles in the halal industry ecosystem.

“The main role of the sharia-compliant fintech is to help business players, especially MSMEs [micro small medium enterprises] to get funding,” Putu said in a virtual discussion on Wednesday, December 16.

“Secondly, we need to support startup companies that can strengthen the halal industry chain,” he added.

Also read: Indonesia Embraces Full-Fledged Sharia Financial Ecosystem, Says VP

Putu further said that the two roles were in line with the directives from Vice President Ma’ruf Amin to establish a technology-based sharia economy that could create financial inclusion.

Therefore, KNEKS would make various efforts to realize the vision by supporting the Financial Services Authority (OJK) to create a trusted fintech ecosystem, he said.

KNEKS also encouraged sharia-compliant businesses to accelerate service institutions, he added.

KNEKS would also play its role as a bridge to connect all stakeholders in the halal industry.
By establishing good communication, Putu believes that the halal industry players can exchange ideas to develop the industry.

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