Frederika Widiarsari, head of Indonesia's Financial Services Authority, emphasized that the enhancement of the Islamic economy must be ongoing throughout the year and not limited to the month of Ramadan. This statement was made during the closing of the 'Gebyar Ramadan Keuangan Syariah 2026' event in Jakarta, where she pointed out that Indonesia possesses immense potential in this field due to being the country with the largest Muslim population in the world.
Widiarsari noted that Indonesia ranks first globally in the halal sector and is third in the Global Islamic Economy Index. Regarding the Islamic financial sector, Indonesia ranks sixth among the top ten countries in the world in areas such as banking, insurance, sukuk, and Islamic social funds.
Event Details
Widiarsari reported that the total assets of the Islamic financial industry in Indonesia grew by 8.61% year-on-year, reaching 3.100 trillion rupiah by December 2025. This amount is distributed among 1.067 trillion rupiah in Islamic banks, 1.800 trillion rupiah in the Islamic money market, and 188 trillion rupiah in the non-banking financial industry.
Islamic financing also saw a growth rate of 9.58% year-on-year, totaling 705 trillion rupiah, while customer deposits increased by 10.14%.
Background & Context
Indonesia is considered one of the largest Islamic markets globally, with many Islamic countries seeking to benefit from this growth. However, the rate of Islamic financial inclusion remains low, at only 13%, compared to a financial literacy rate of 43%. This requires the authority to conduct larger awareness campaigns to build trust in Islamic financial products.
As part of its efforts to promote the Islamic economy, the authority has reorganized its administrative structure by establishing a dedicated department for small and medium enterprises, aligning with the government's focus on enhancing cooperatives and small projects.
Impact & Consequences
Through these initiatives, Indonesia aims to support key government programs, such as creating high-quality job opportunities and developing creative industries through funding for small and medium enterprises. It also seeks to enhance the role of youth, women, and people with disabilities in the economy.
These policies are expected to contribute to achieving sustainable development goals, boosting the local economy, and reducing poverty rates, which will positively reflect on Indonesian society.
Regional Significance
Indonesia's experience in enhancing the Islamic economy serves as a model for Arab countries, where they can benefit from successful experiences in this field. Additionally, strengthening cooperation among Islamic countries in the realm of the Islamic economy can contribute to achieving sustainable development.
In conclusion, enhancing the Islamic economy in Indonesia represents an important step towards achieving economic and social development and reflects the government's commitment to promoting financial inclusion and developing the Islamic financial sector.