Sri Mulyani: Technology Is Very Important For Sharia Economic Development

Minister of Finance, Sri Mulyani Indrawati. (Photo: Antara)

JAKARTA - Minister of Finance Sri Mulyani said that the development of the domestic Islamic economy and finance has not developed rapidly. In fact, Indonesia is a country with quite large Islamic economic potential.

Therefore, he considered, the role of technology is very important in supporting Islamic economic and financial activities in the country. Sri Mulyani said that without the development of technology and other supporting infrastructure, the progress of Islamic economics and finance could not be achieved.

The government also in the 2021-2024 State Budget will continue to focus on building infrastructure that is able to provide access to information technology and digital technology which is a must in creating support and influence.

"The influence of this technology is expected to accelerate the economic development of Islamic finance, including from the side of financial inclusion," he said, during a virtual 'Islamic Economic and Financial Research Forum', Monday, September 21.

Not only that, said Sri Mulyani, technology can also increase productivity and competition from sharia industries. Therefore, the government will continue to support increasing technological content and innovation in the halal industry, including food, manufacturing and finance.

"The application of technology which is accompanied by the principle of halalness will provide an answer that is needed for the development of the halal products industry in Indonesia," he said.

The Chairperson of the Association of Islamic Economists (IAEI) said that prior to the COVID-19, Indonesian Islamic banking had performed quite well with double digit growth with a market share of above 5 percent. However, in the event of COVID-19, the entire financial industry made changes in their growth plans.

"This pandemic is not only a health problem and is life threatening but affects the social and economic conditions which causes the entire community to do social distancing and has an impact on the Islamic economic and financial industry," he said.

Sri said, to stimulate the Islamic finance industry in the midst of the COVID-19 pandemic, the government is also aggressively issuing sukuk which are quite popular with domestic and foreign investors.

"The government has also issued sharia-based instruments, namely sukuk which are in great demand by domestic and foreign investors," he said.