Web3, Blockchain, and Crypto: Transforming the Future of Indonesia’s Islamic Finance
Jakarta, November 13, 2024 – In today’s digital transformation era, blockchain and crypto technologies are reshaping the landscape of economic and Islamic finance development. Supported by regulations such as Bappebti Regulation No. 8 of 2021 concerning Guidelines for Organising Crypto Asset Physical Trading Market on the Futures Exchange and OJK Regulation No. 3 of 2024 concerning Implementation of Technological Innovation in the Financial Sector, these technologies continue to evolve, catering to the growing demand for inclusive and Sharia-compliant financial services.
As part of the 6th Indonesia Fintech Summit & Expo (IFSE) 2024 held at The Kasablanka Hall, Jakarta, the Indonesia Sharia Fintech Association (AFSI) hosted a special session titled “Technology Convergence: The Future of Islamic Digital Finance in the Web3 Era.” The session brought together industry leaders, regulators, academics, and other stakeholders to explore key aspects of innovation in Islamic finance technology.
Saut Parulian Saragih, SEVP Digital Banking at PT Bank Syariah Indonesia Tbk, emphasized the significant role of fintech in advancing Islamic finance, “Fintech companies can unlock greater penetration and market share for Islamic financial services in Indonesia. The right technology integration will transform banking services, elevating Sharia values to a more relevant position in the digital era. We view this development as a positive step forward.”
He continued, “We recognize that significantly improving literacy and penetration in Islamic finance requires collaboration between fintech, Islamic banks, and other Sharia-compliant non-bank financial institutions.”
Adding to the discussion, Mohammed Alkaff, Co-Founder and Executive Board Member of Haqq Network, highlighted the potential of Web3 technologies, “Crypto and blockchain provide opportunities to create a more transparent and decentralized financial system. This aligns perfectly with Islamic principles to ensure justice and sustainability in every transaction.”
Building on these insights, Mr. Mohammad Raafi Hossain, Founder & CEO of Fasset, shared his vision for the future, “Web3 represents the future with immense potential for Islamic finance. By adopting a proactive approach, we can leverage this technology to build a globally accessible Sharia-compliant economic ecosystem. This is a major step toward universal financial inclusion.”
Concluding the session, Muhamad Ismail, Vice Chairman of AFSI, underscored the transformative impact of these technologies, “Undoubtedly, in the coming years, Web3, blockchain, and crypto will serve as catalysts for the growth of Islamic finance, extending its values and benefits across the globe. Now is the time to understand these technologies and how to optimize them for advancing Islamic finance. Moreover, close collaboration between regulators, the industry, and the community is crucial to developing innovative solutions that remain firmly rooted in Islamic principles.”
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About IFSE 2024
The Indonesia Fintech Summit & Expo (IFSE) 2024 is the flagship event of the National Fintech Mont, collaboratively organized by OJK, AFTECH, AFSI, and AFPI. Beyond being a strategic platform for discussions on responsible financial technology innovation, IFSE 2024 is an exhibition where industry players showcase their latest products and services to the public.
About National Fintech Month
National Fintech Month (BFN) is an annual program held from November 11 to December 12, organized by the government, associations, the fintech industry, and digital economy stakeholders. The program aims to accelerate the digitalization of financial services by balancing innovation, growth, and governance. Additionally, it strengthens the role of Islamic fintech in supporting an inclusive and Sharia-compliant economy. The program includes educational and literacy initiatives, incentives, discounts, and more, leveraging the momentum of the National Online Shopping Day (Harbolnas).
Contact:
Adinda Lia Analia, Sr. Marketing & Communications
dinda@fintechsyariah.id