Digitization is Key to Developing Islamic Economics

Bank Indonesia (BI) Governor Perry Warjiyo has stated that digitalization is one of the keys to developing Islamic economics that can help it have a more significant impact on the national economy.  “In a bid to have a greater impact, digitalization must be developed to strengthen the Islamic economics and finance ecosystem, including the fashion and food industries,” Warjiyo noted during the 13th International Conference on Islamic Economics and Finance (ICIEF) event held virtually, Monday.

Warjiyo assessed that more ideas and solutions are required, so that Islamic economics and finance can support national and international economic recovery.

“This is not only for realizing Islamic economy and finance but also for encouraging zakat, infaq, and sedekah (alms) and how to optimize them to drive growth of Islamic economy and finance,” he noted.

The BI governor noted that this was implemented by Bank Indonesia through the Ziswaf program. Warjiyo pointed to the rapid developments in digitalization during the COVID-19 pandemic, from digital banking to electronic money and e-commerce transactions.

“Including in Islamic economics, as of August 2021, the value of halal industry transactions in e-commerce increased significantly by more than 20 percent (YoY), which was dominated by fashion products,” he added.

Furthermore, he expressed optimism that the ICIEF, organized by Bank Indonesia in collaboration with the Association of Indonesian Islamic Economists (IAEI), the National Committee for Islamic Economics and Finance (KNEKS), and the Bogor Agricultural University (IPB), would provide solutions, innovations, and growth for betterment of the economy and finance in accordance with Islamic values.

To support the holding of the conference, Bank Indonesia has provided the Journal of Islamic Monetary Economics and Finance that will be discussed to explore ideas and formulate policies in Islamic finance.