Wwapres Ma'ruf Amin: Islamic Finance Is A Rational Choice For All, Not Only Muslims

Vice President Ma'ruf Amin delivered a speech at the opening of Ijtima Sanawi of the Indonesian Sharia Supervisory Council (ANTARA)

JAKARTA - Vice President Ma'ruf Amin said that the development of Islamic economics and finance in Indonesia is not only aimed at providing economic options for Muslims alone, but is efficient for the whole community.

This was conveyed by Vice President Ma'ruf Amin during a speech at the opening of the Ijtima Sanawi Sharia Supervisory Board (DPS) in Indonesia in 2021 through a video conference from his official residence in Jakarta, Thursday, December 2.

"Sharia economics and finance should not be viewed only from the perspective of sharia compliance, but must also be efficient and competitive so that it becomes a rational choice for everyone, not only for Muslims," said Ma'ruf as quoted by Antara.

In an effort to strengthen the national economy, the Vice President continued, the government seeks to encourage economic development and Islamic finance as an important pillar.

In the Islamic finance sector in particular, the government has made various efforts to create a more complete Islamic finance ecosystem, including in the banking, financing, real and social fund sectors.

"In the banking sector, three state-owned Islamic banks have been merged into one bank so that it is expected to become the locomotive of the Islamic finance sector in the country," he said.

In addition, the government also wants to increase the establishment of Micro Waqf Banks (BWM), Baitul Mal wat-Tanwil (BMT), Sharia Microfinance Institutions (LKMS) and sharia cooperatives.

In the financing sector, the government has also sought various Islamic financial instruments, such as the launch of sharia securities (sukuk), the promotion of the National Money Waqf Movement (GNWU) and the establishment of Cash Waqf Linked Sukuk (CWLS).

In the real sector, said Ma'ruf, the government also continues to develop the supply chain of halal products by establishing a number of Halal Industrial Estates (KIH) which are integrated with various industrial areas.

"KIH is expected to create an ecosystem of halal products in one area. And our challenge is to fill the KIH and attract business actors including MSMEs to be part of the KIH ecosystem," he explained.

Meanwhile, regarding the development of social funds, Ma'ruf said, the government encourages improvements in the governance of waqf institutions and increases literacy of community waqf. The government has also initiated the GNWU and received support from the MUI regarding the issuance of cash waqf fatwa in 2002.

"It is hoped that in the future, this sharia social fund will really be optimized so that it can have a significant effect on improving the welfare of Muslims," said the vice president.