Jakarta. The Financial Services Authority (OJK) revealed that the total value of assets in Sharia-based financial businesses stood at approximately Rp 2,500 trillion ($155 billion) last year.

According to OJK’s executive head of financial business supervision and consumer protection, Friderica Widyasari Dewi, the authority has issued a series of regulations to protect Indonesian Sharia-based businesses and ensure sustainable growth.

The recent issuance of the law on the development and empowerment of the financial sector was followed by regulations on Sharia business units and good governance in Sharia-based general banks. The OJK also has a set of rules for Sukuk bonds and Sharia insurance businesses.

“The set of rules and regulations aims to strengthen the national Sharia financial industry,” Friderica said during the Sharia Economy Award 2024 hosted by the business newspaper Investor Daily in Jakarta on Monday evening.

“Throughout 2023, the total assets in the Sharia financial industry were valued at Rp 2,500 trillion, representing a 9 percent rise year-on-year,” she added.

Although Indonesia is home to the largest Muslim population in the world, growth in Sharia businesses cannot be taken for granted. The country is still facing technological constraints and a lack of well-trained workforce in the sector, she said.

According to a 2023 survey, the Sharia bank literacy rate surged by 30 points to 39 percent year-on-year, Friderica said.