Expert: Islamic Financial Management Principles Need To Be Implemented Early

Photo: Doc. Antara

JAKARTA - Economic expert Adiwarman Azwar Karim stated that instilling an understanding of the principles of Islamic financial management needs to be done early on from the family, to encourage sharia economic growth in Indonesia.

Currently, according to him, the number of people who are literate about Islamic-based finance is still very low when compared to conventional understanding of financial products and services.

Based on the results of the 2024 National Literacy and Financial Inclusion Survey (SNLIK), the Sharia Financial Literacy Rate was recorded at 39.11 percent, below the National and Conventional Financial Literacy levels at 65.43 percent and 65.09 percent.

Meanwhile, the level of sharia insurance literacy in Indonesia only reached 3.99 percent, much lower than conventional insurance literacy which reached more than 45 percent.

He said, there is a fairly large gap between Islamic financial literacy and insurance and conventional ones, which shows challenges as well as great opportunities for the industry to seek to increase and equalize Islamic-based financial literacy and insurance in Indonesia.

"It is very important to instill an understanding of the principles of Islamic financial management carried out from an early age from the family," said the Islamic financial consultant in the "Taklim Manajemen Harta Syariah (TAMARASYA)" activity, quoted from Antara, Thursday, October 24.

According to him, Indonesia is one of the countries with the largest Muslim population in the world, which is 236 million people (84.35 percent of the total population of Indonesia), he added, has enormous potential in the Islamic financial industry.

Chief Actuary Officer, Prudential Syariah Rina Elvi Roza added the importance of building an understanding of Islamic financial management from an early age from the family, including sharia insurance.

Related to this, his party is committed to continuing to encourage insurance literacy so that the benefits can reach a wider community.

"We will continue to collaborate with various stakeholders, to jointly become a catalyst for Islamic economic growth in Indonesia as well as to realize a life full of blessings," he said.