Indonesia launches road map to bolster Islamic banking sector

Indonesia’s central bank, the Financial Services Authority (OJK) has announced the launch of a road map for the development and strengthening of Islamic banking for the 2023-2027 period to increase Islamic banks’ competitiveness. According to Dian Ediana Rae, the Chief Executive of Banking Supervision at OJK, the road map gives strategic policy directions for Islamic banks, both in the industry or supply side and the community or demand side. The road map is considered important as Islamic banking will face a challenge in the form of increasingly high economic growth, Rae added. It is also deemed essential for Islamic banks to boost their competitiveness, as currently, from 13 Islamic banks and 20 Islamic bank business units operating in Indonesia, only one bank has assets of above IDR100tr (USD6.45bn).