Boosting Financial Inclusion through Sharia Economy in Indonesia
Sharia economy have experienced rapid development in the last two decades. The main influencing factor is an increase in the number of Muslim population, which will reach 27.5% of the world population in 2030. Subsequently, it will increase demand for halal products and services.
In 2016, the total size of global Islamic finance assets reached $2.2 trillion and projected to grow by nearly 72% to $3.78 trillion by 2022. Islamic banks asset has a significant growth at around 1.5% globally in 2018-2019 while conventional banks left behind at 1%.
Indonesia Sharia economy market is still lagging behind other OIC countries in terms of Sukuk (Sharia-compliant bonds) outstanding and Islamic funds asset under management (AuM), although Indonesia is the largest Muslim country in the world, in which will contributes 12% out of 23% of Muslims population globally by 2022. There are rooms for growth for Sharia business, such as payments, loans, credit cards, investments, bonds insurance, and other services.