VP Ma’ruf Amin Calls for Improved Literacy, Inclusivity in Sharia Capital Market

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 11 November 2021
Category: News
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Vice President KH. Ma’ruf Amin opens the 2021 Seminar and Sharia Investment Week via video conference, Thursday (11/11). (Photo by: BPMI of Vice President Secretariat)

The Government’s efforts to educate the communities regarding sharia finance and investment take cooperation and contribution of all elements to foster sharia economy and finance in the country, Vice President Ma’ruf Amin has said.

Data from the Financial Services Authority (OJK) in 2019 shows that Indonesia’s sharia financial literacy rate was only at 8.93 percent.

“I urge you to continually push for educational efforts to improve literacy and understanding of the inclusiveness of sharia aspects for sharia capital market players,” the Vice President said in his remarks at the 2021 Seminar and Sharia Investment Week via video conference, Thursday (11/11).

In addition, the sharia capital market has also recorded consistent growth in the midst of the COVID-19 pandemic.

“I’ve been informed that despite in the midst of the COVID-19 pandemic, sharia capital market products continued to experience consistent growth, such as state sharia securities (sukuk) and sharia mutual funds,” Ma’ruf said.

According to him, the potential and large growth space for sharia finance in the future must be utilized.

Ma’ruf also said that one of the advantages of Indonesian sharia capital market lies in the end-to-end stock transaction process that complies with sharia principles.

“This must continue to be maintained so that public confidence in the Indonesian sharia capital market is getting stronger,” he added.

Furthermore, the Vice President said that digital-based innovation and the expansion of digitalization of integrated services to various sectors have become an urgent need nowadays, considering that it can provide easy access for the communities and improve the acceleration of sharia investment growth.

“The development of these innovations must be balanced with improvements to devices that support big data, Artificial Intelligence, blockchain, and financial technology, as well as well-prepared human resources to meet the needs of digital-based technology development in sharia economic and financial development,” he explained.

On that occasion, the Vice President also expressed his appreciation to a number of related elements for all the innovations and efforts that have been made in promoting the development of sharia capital market in the country.

“These efforts include the issuance of 11 OJK regulations, 25 fatwas of the National Sharia Board of the Indonesian Ulema Council (DSN-MUI) on sharia capital market, and the 2020-2024 Sharia Capital Market Roadmap launched by the OJK. All of the regulations are references for all stakeholders to foster sharia capital market in a more focused manner,” he said.

The Vice President also expressed hope that various Islamic philanthropic products integrated with sharia securities in Indonesian sharia capital market, such as a waqf sukuk, stock zakat (alms), and stock waqf, can be further developed.

“Sharia-based Securities Crowdfunding (SCF) as an alternative funding for MSMEs also needs to be developed continuously, especially to encourage the revival of MSMEs after the COVID-19 pandemic,” he said.

At the end of his remarks, the Vice President is hopeful that the event can inspire and benefit wider communities, as well as boost investment literacy in Indonesian sharia capital market.

“I am convinced that through various initiatives that have been and continue to be undertaken by all elements, InsyaAllah, we will together make Indonesia the center of the world’s sharia economy and finance,” he remarked.

For the record, the 2021 Sharia Investment Week is a series of 44 years of reactivation of the Indonesian capital market organized by the OJK in collaboration with the Indonesia Stock Exchange (IDX), PT Kliring Penjaminan Efek Indonesia (KPEI), and PT Kustodian Sentral Efek Indonesia (KSEI). (BPMI of Vice President Secretariat/AIT/SLN) (RIF/MUR)

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