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Islamic Financial Technology Key to Indonesia’s Development

December 16, 2020, 11.25 PM

JAKARTA, – 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 readIndonesia 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.

Also readIndonesia Highlights: Tobacco Excise Tax Hike by 12.5 Percent Next Year | New Name for State-Owned Islamic Bank Revealed after Three-Way Merger | Cleric Rizieq Shihab Will Turn Himself In, Say His Lawyers

Meanwhile, sharia economy expert Adiwarman Karim said that fintech could open up an opportunity for the business players in the halal industry, especially in terms of business funding.

With the creation of financial inclusion, the halal industry entrepreneurs should not be worried about getting financing for their business development.

“With the advancement of digital platforms, it will be easier for people to enter the business,” he said.

(Writer: Rully R. Ramli | Editor: Erlangga Djumena)


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