Crucial Government Supports for Sharia Industry

By : Herry Barus And Aldo Bella Putra | Monday, March 26 2018 - 19:30 IWST

CIMB Niaga Syariah (Foto Dok Industry.co.id)
CIMB Niaga Syariah (Foto Dok Industry.co.id)

INDUSTRY.co.id - Jakarta - Sharia Banking Director CIMB Niaga Pandji P Djajanegara assess the government has a very crucial role for the development of Islamic financial institutions in the country either bank or nonbank.

"Sharia industry is still small, we should not be regarded as a competitor to the conventional, but as a complement, the role of the government is extraordinary," Pandji said during a press conference of CIMB Niaga Syariah financial performance in Jakarta on Monday (26/3/2018).

The market share of the Islamic finance industry is still struggling in the range of five percent, far behind compared Malaysia Malaysia, whose market share reaches about 23 percent.

According to Pandji, the government should continue to encourage the development of sharia financial industry, especially from the side of the regulation, so that the share of Islamic financial market can move higher.

"It is difficult to increase if there is no incentive, but it does not mean unlimited yes, but if it is not encouraged, it will be difficult to advance from five percent," said Pandji.

He cited the support provided by the Malaysian government in the form of tax incentives for funds placed in Islamic financial institutions there so that the share of Islamic financial markets in Malaysia continues to increase.

"Malaysia was initially also given incentives, for example if the deposit is put down, the tax is reduced, there must be a 'push factor' so we can be more than five percent," Pandji said.

Pandji also mentioned the importance of regulatory support from the government in favor of the Islamic finance industry. He also hopes that Sharia National Committee (KNKS) that has been formed can play an optimal role.

"Regulation should be better and more profitable for sharia industry," said Pandji.

News Comment

Today's Industry

NORD-DuoDrive.jpg: The innovative and patented DuoDrive geared motor reaches outstanding system efficiency Image: NORD DRIVESYSTEMS

Selasa, 17 Mei 2022 - 14:00 WIB

NORD DRIVESYSTEMS at LogiMAT in Stuttgart From 31st May to 2nd June 2022 NORD will present innovative drive solutions for intralogistics

The specialist LogiMAT exhibition in Stuttgart offers as comprehensive overview of the intralogistics and process management market. As one of the market leaders for drive technology, NORD presents…

President Jokowi attends the meeting between ASEAN leaders and American entrepreneurs at Intercontinental the Willard Hotel, Washington DC, Thursday (05/12). Photo by: Laily Rachev

Selasa, 17 Mei 2022 - 13:00 WIB

President Jokowi Invites US CEOs to Boost Cooperation with Indonesia

President Joko “Jokowi” Widodo has invited company CEOs in the United States to boost cooperation with ASEAN countries, particularly Indonesia.

President Jokowi, President Biden, and ASEAN Leaders on a group photo prior to the dinner, at the White House, Washington D.C., Thursday (05/12)

Selasa, 17 Mei 2022 - 12:28 WIB

President Jokowi, ASEAN Leaders Attend Dinner Hosted by US President

President Joko “Jokowi” Widodo Thursday (05/12) attended a dinner with the leaders of ASEAN countries hosted by President of the United States Joe Biden at the White House, Washington D.C.

(Photo: © 2022 KRAIBURG TPE)

Selasa, 17 Mei 2022 - 11:23 WIB

TPE unleashes benefits for pet accessories

The pet care market is rapidly expanding as pet ownership increases, as does spending on pet food, grooming tools, and accessories. Pet owners are significantly concerned about the prevalence…

Sergey Sedov, Founder and CEO of Robocash Group

Jumat, 13 Mei 2022 - 16:15 WIB

Robocash Group reached 2 BN USD of disbursement and issued audited financial report of 2021

Robocash Group publishes the audited combined financial statements for the year ended 31 December 2021. The Group reached an all-time high 2 BN USD of issued financing and is expected to increase…