Indonesian Minister of Cooperation, Ferry Juliantono, emphasized a notable growth in the relationship between Islamic finance and the real sector, where each will enhance the other. This was stated during the closing of the 'Ramadan Celebration for Islamic Finance 2026' in Jakarta, where the minister pointed out the necessity of expanding Islamic financial literacy to include villages and remote areas.
Juliantono explained that enhancing Islamic finance at this stage cannot be separated from supporting the real sector, as real economic activities, such as small and medium enterprises and halal industries, are the ones that will contribute to the growth of this type of financing. He also highlighted the importance of cooperation among various sectors to achieve this goal.
Event Highlights
During the conference, the vital role played by local cooperatives, such as the 'Merah Putih' cooperatives, which have been established in many villages, was highlighted. These cooperatives, which include thousands of facilities and stores, represent an essential part of the ecosystem for promoting financial literacy and developing the real sector. The minister confirmed that these cooperatives will become new centers for sustainable Islamic economic growth.
Juliantono also pointed out the importance of supporting local products by allocating spaces in cooperatives to showcase and sell these products. He affirmed that the ministry will work on encouraging support and mentoring programs for small and medium products, which will help enhance these projects' competitiveness in the market.
Background & Context
Indonesia is considered one of the largest Islamic countries in the world, where Islamic finance represents an important part of the financial system. With the increasing interest in the Islamic economy, the Indonesian government seeks to enhance this sector by developing financial infrastructure and providing support for small and medium enterprises. Historically, Islamic finance in Indonesia has faced several challenges, including a lack of awareness and financial literacy among the population, prompting the government to take serious steps to bolster this sector.
In recent years, Indonesia has witnessed an increase in the number of Islamic financial institutions, contributing to enhancing trust in this type of financing. Additionally, many government initiatives have been launched to support small and medium enterprises, which are considered the backbone of the local economy.
Impact & Consequences
The steps taken by the Indonesian government are seen as a turning point in promoting the Islamic economy. By supporting small and medium enterprises, the government can contribute to creating new job opportunities and improving living standards in local communities. Furthermore, enhancing financial literacy in villages will help build a more aware community capable of managing its financial resources better.
Moreover, strengthening Islamic finance can contribute to attracting foreign investments, as many investors are looking for opportunities in emerging markets that adopt Islamic finance principles. Consequently, this could lead to increased economic growth and improved financial stability in the country.
Regional Significance
Indonesia’s experience in promoting Islamic finance serves as a model for Arab countries, where Arab nations can benefit from this experience in developing their financial systems. With the growing interest in the Islamic economy in the region, these initiatives can contribute to enhancing economic cooperation among Islamic countries and strengthening their position in the global market.
In conclusion, promoting Islamic finance and the real sector in Indonesia represents an important step towards achieving sustainable development. By supporting small and medium enterprises and enhancing financial literacy, the government can contribute to building a strong and sustainable economy.