VP highlights parallel development of sharia and conventional economy

Jakarta (ANTARA) – Vice President Ma’ruf Amin affirmed that the development of sharia-compliant finance should run in parallel with the conventional economy to boost the national economic growth.

“The effort to develop the sharia economy and finance should not be made by confronting it with conventional economy. The development of sharia and conventional economy should run in synergy,” Amin stated at the inauguration of the Association of Indonesian Islamic Economy Experts (IAEII) here on Friday.

The concept of conventional economy can be applied in Indonesia, while the sharia economy would serve as a complimentary means to drive the national economy, he remarked.

The development of sharia economy and finance in Indonesia has shown a positive trend, with the country’s increased rank to fourth out of the 131 countries in sharia economy development based on the Islamic Finance Development Indicator (IFDI) 2019.

Amin noted that Indonesia should further explore its potential of sharia economy, such as in halal product exports, sharia banking and insurance, as well as social funds, such as endowments and alms.

“Our alms revenue has only reached Rp230 trillion, or 3.5 percent of its potential. Similarly, with endowments, we have huge potential. We hope to be able to collect as much as social fund as possible to boost the development of investment in Indonesia,” he added.

Chairman of IAEII Sri Mulyani, concurrently the finance minister, has installed the central executive board (DPP) of IAEII for 2019-2023 period at the Finance Ministry on Friday.

Among members of the executive board are Minister of State Enterprises Erick Thohir and Vice Minister of State Enterprises Kartika Wirjoatmodjo.

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