OJK Pushes for Sharia Banking to Serve Real Community Needs

Emphasis on Islamic Banking Principles

The Financial Services Authority (OJK) is stressing that the Islamic banking industry must move beyond being merely complementary to conventional banking and instead serve as a real solution to community needs. According to Nyimas Rohmah, Head of Sharia Banking Regulation and Development at OJK, Islamic banks in Indonesia must operate in a way that provides tangible benefits in accordance with Islamic principles.

Core Values of Islamic Banking

Rohmah emphasized that Islamic banking operations should prioritize greater public benefit (maslahat), while upholding principles of justice and transparency. She highlighted that an economy based on Islamic values fundamentally emphasizes equitable wealth distribution. Therefore, Islamic banking should not solely focus on profit maximization but rather on creating broader social and economic benefits.

Regulatory Perspective

The OJK's stance represents a regulatory push to ensure that Islamic banking lives up to its foundational principles. By focusing on the core values of Islamic economics, the regulator aims to create a more inclusive and equitable financial system that serves the broader needs of Indonesian society.