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    Financial Services Authority Encourages Sharia Financial Institutions in Infrastructure Project Funding

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    BANDUNG- Financial Services Authority (OJK) welcomes the establishment of Jurnalis Syariah (JES) Bandung which is expected to provide various information related to the Islamic financial services industry to the public.

    Head of Regional Office 2 Jabar West Java, Sarwono said, the potential of West Java is very large with the population reached 47 million people with Muslim population reached 85 percent.

    "We welcome the existence of JES, given that journalists have a moral message to convey syariah financial literacy to provide understanding to the community," he said.

    According Sarwono, Islamic financial literacy in Indonesia to date is still relatively low, which amounted to 8.11 percent who understand about sharia and 11.06 percent using sharia banking products.

    "The sharia banking industry in Indonesia is currently showing signs of continuous improvement where the current market share of sharia banking reaches 5.596 of the total market share of the national banking industry," he said.

    Sarwono stated, the growing sharia banking industry needs to be encouraged by public understanding about syariah financial literacy as well as capital, human resources and technology support.

    "Develop sharia banking, need technological support, then capital, and human resources that are currently insufficient that have understanding of sharia because the market is also less," he said.

    Sarwono explained, the funds needed for infrastructure development in 2020 amounted to Rp 4.796 trillion, to date there is still a financial gap of Rp 626 trillion.

    "OJK encourages the participation of sharia financial institutions in financing infrastructure projects, through syndicated financing of Bank Syariah, financing through syariah capital market, strengthening insurance and reinsurance of sharia," he explained. (Parno)

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