Indonesia has once again secured the third position globally for the most conducive Islamic financial technology (fintech) ecosystem. This was announced by Ronald Yusuf Wijaya, Chairman of the Indonesian Sharia Fintech Association (AFSI), during a hearing with Commission XI of the Indonesian House of Representatives (DPR RI) in Jakarta on Wednesday (March 12, 2025).

According to Ronald, although Indonesia leads in both the number of Islamic fintech providers and the volume of financing distribution, the country still ranks below Saudi Arabia and Malaysia.

“This year, we are back at the third position globally in the Islamic fintech category, behind Saudi Arabia and Malaysia. Interestingly, Indonesia has the highest number of Islamic fintech operators and the largest financing distribution,” Ronald stated.

The ranking is based on the Global Islamic Fintech Report 2023/2024, which surveyed 490 Islamic fintech companies worldwide. The report projects that the global Islamic fintech market size could reach US$ 306 billion by 2028.

Saudi Arabia leads the ranking with 83 points, followed by Malaysia with 82 points. Indonesia holds third place, while the United Arab Emirates ranks fourth with 61 points, and the United Kingdom comes in fifth with 50 points.

Ronald highlighted that Indonesia excels in sharia compliance and regulation but noted a decline in bank participation. He linked this drop to recent industry challenges, stressing the importance of maintaining momentum and strengthening the sector.

Looking ahead, AFSI remains committed to promoting financial literacy and education. Ronald emphasized that they never reject invitations for literacy and education programs, whether paid or unpaid.

As of now, AFSI has collaborated with 79 partners and organized 163 events focused on educating the public about Islamic fintech.

“This is our commitment. Why? Because even today, people still struggle to understand fintech. I recently opened an account at a sharia bank, and the customer service representative asked me, ‘What sector do you work in?’ I said fintech. They replied, ‘What is fintech?’ and they work in finance. How can the general public grasp this concept if financial sector employees themselves are unaware?” Ronald added.

PHOTO: MIME ASIA

This article was created with AI assistance.