BI Optimistic Islamic Economy 2024 Grows Up To 5.5 Percent

Deputy Governor of Bank Indonesia Juda Agung. (Photo: Doc. ANTARA)

JAKARTA - Bank Indonesia (BI) is optimistic that Islamic economic growth in 2024 will be in the range of 4.7 percent to 5.5 percent.

This projection is in line with Indonesia's economic growth target.

Deputy Governor of Bank Indonesia (BI) Juda Agung said he was optimistic that this was driven by the Islamic banking financing sector which is estimated to grow double digits in 2024.

"We estimate that the Islamic economy will grow 4.7-5.5 percent with the support of Islamic banking financing which is estimated to grow by 10 percent-12 percent," he said at the launch of KEKSI 2023 and SheFO 2024, Monday, February 26, 2024.

Juda said that in 2023 the Islamic economy and finance in Indonesia will experience an increase, as reflected in the growth in sharia financing specifically for the real sector growing by 15.8 percent. This figure grows above credit growth which is only around 10 percent.

According to Juda, this year he is very optimistic that sharia economic growth can grow higher than before.

Therefore, he invites all parties to strengthen the foundation and Islamic finance to the halal industry.

Juda also said that based on the State of the Global Islamic Economy (SGIE) Report 2023 report released by Dinar Standard in Dubai, United Arab Emirates.

Indonesia managed to rank third in the Global Islamic Economy Indicator (GIEI).

"For Muslim-friendly tourism, we are even ranked first," he said.

On the same occasion, Expert Staff for Financial Services and Capital Market of the Ministry of Finance Arief Wibisono said that the Islamic finance industry in Indonesia continues to increase.

This is reflected in the total Islamic financial assets in Indonesia, excluding Islamic shares reaching IDR 2,452.57 trillion or growing by 6.75 percent as of September 2023.

As for the details, Islamic financial assets include the Islamic capital market of Rp1,457.73 trillion or around 59.44 percent, Islamic banking of Rp831.90 trillion or around 33.92 percent and the Sharia Non-Bank Financial Industry (IKNB) of Rp162.85 trillion or 6.64 percent.

Arief added, the market share of the Islamic finance industry with the national industry continues to increase, with details of 20.52 percent for the Islamic financial market, 7.27 percent for Islamic banking and IKNB Syariah at 5 percent.