Jakarta. Despite having the biggest Muslim population in the world, Indonesia has a low sharia financial literacy, according to a survey by the country’s central bank.

A 2022 Bank Indonesia survey revealed that only 28 out of 100 people in Indonesia understand and are able to use sharia-compliant financial products effectively. The statistics are quite ironic as Muslims make up a large part of the Indonesian population, even reaching over 207 million people as of 2024. 

“The 2022 survey shows that the sharia financial literacy only stands at 28 percent,” Bank Indonesia’s sharia finance director Rifki Ismail told a conference in Jakarta on Thursday.

According to Rifki, understanding of the sharia economy is mainly limited to lecturers and civil servants. Many Indonesian private sector employees have little understanding of sharia finances. Provinces with greater Muslim population size also tend to score better literacy, thus causing a gap in the archipelagic Indonesia.

In response, Bank Indonesia tries to promote waqf -- the Muslim concept of charitable endowment. In Indonesia, waqf typically involves donating physical assets like mosques, orphanages, land, cemetery, among others However, there are other ways for people to make waqf. 

“There are other instruments, including waqf-linked sukuk or sharia-compliant bonds. There are also cash waqf-linked deposits and stocks,” Rifki said.

People can also fill out a waqf risk profile to find which instrument would be the best for them. A nazir --the term referring to the person in charge of managing the waqf--will also offer assistance. 

“There will be a risk assessment,” Rifki said.

He added: “Waqf is for the benefit of the people.”