KNEKS Reveals Prospects and Challenges of Indonesian Sharia Finance to Asian Industry Players

Indonesia's National Committee for Sharia Economics and Finance (KNEKS) showcased the nation's progress and potential in Islamic finance at the Asian Financial Leaders Programme (AFLP) 2026 in Jakarta. The event, organized by the University of Indonesia's Management Institute in collaboration with Singapore Management University, convened senior financial leaders from across Asia.

Sutan Emir Hidayat, Director of Sharia Ecosystem Infrastructure at KNEKS, presented on 'Opportunities and Challenges in Islamic Finance: The Operations of Islamic Banking in Indonesia.' He detailed the growth of Indonesia's sharia economy, the expanding global halal market, and the sector's role in supporting inclusive and sustainable economic development. Hidayat noted advancements in the halal industry, increased sharia financial assets, and strengthened regulations as key drivers of national competitiveness.

Hidayat outlined opportunities such as enhanced public literacy, accelerated digital transformation, and better synergy between commercial and social sharia finance. However, he also pointed to challenges including the need for improved technological infrastructure, product innovation, increased capital capacity, and the development of a skilled workforce. He introduced the Sharia Restricted Investment Account (SRIA), a profit-sharing investment instrument focused on real sector financing, designed to broaden investment options and boost the global competitiveness of Indonesia's Islamic finance industry.

KNEKS's participation in AFLP 2026 is part of its strategy to introduce Indonesia's sharia economy and finance to international industry leaders. The committee aims to solidify Indonesia's status as a global center for Islamic finance and encourage broader collaboration within the international sharia financial industry.