When the world is rocked by trade wars, geopolitical conflicts,\nenergy price volatility, and fragmentation of global supply chains, the\nglobal financial system is entering a new chapter of crisis under\npressure from high interest rates, economic slowdowns, and increasing\nuncertainty in capital flows. In such a situation, the world is actually\nsearching for a more resilient financial model, one more connected to\nthe real sector, and better able to absorb shocks.<\/p>\n
Just as it responded to the global financial crisis in its early\ndays, this is where Islamic finance should rediscover its relevant\nmomentum.<\/p>\n
An asset-based financing model rooted in prudence, public benefit,\nand risk-sharing principles becomes increasingly relevant when the world\nfaces high uncertainty.<\/p>\n
Ironically, amid this relevance, Islamic finance still faces a\nclassic problem: it has not been able to escape the trap of single-digit\nmarket share. The global crisis should become a momentum for\nacceleration and be converted into a growth leap.<\/p>\n
Today\u2019s world turmoil needs to be read not merely as a threat, but as\na starting point for rebranding Islamic finance from a complementary\nsector to one of the important pillars of the national development\narchitecture.<\/p>\n
Rereading the Single-Digit Trap<\/p>\n
For years, national Islamic finance has been trapped in the\nsingle-digit trap. The market share of Islamic banking is still hovering\naround 7%-8%, far from the strategic target of 20% that has long been\nthe policy horizon.<\/p>\n
If read from historical trends, growth has indeed occurred, but its\npace is still gradual and not strong enough to significantly change the\nmarket structure. The problem is not just the market share numbers, but\nrelated to public preferences and behaviour.<\/p>\n
Data shows that the level of Islamic financial literacy has reached\n43.42 percent, but inclusion is only 13.41 percent. These figures\nindicate a wide gap between knowledge and actual usage.<\/p>\n
The public is increasingly familiar with the concept of Islamic\nbanks, sukuk, and sharia contracts. However, that knowledge has not\nfully transformed into the primary choice in daily economic activities.\nThere is a wide chasm between awareness and adoption. This is the core\nissue that must be addressed through a rebranding strategy.<\/p>\n
Islamic finance is known, but not fully trusted. Understood, but not\nsufficiently chosen. Accepted normatively, but not yet mainstream.<\/p>\n
Rebranding that Touches Substance<\/p>\n
Amid global uncertainty, the public is no longer just looking for\nfinancial institutions that adhere to principles, but also those that\nare fast, efficient, digital, and provide real economic benefits.\nTherefore, the rebranding needed is not just a change of slogan or\nimage. What is needed is substantive repositioning.<\/p>\n
First, changing public perception from a niche sector based on\nidentity to a competitive universal financial solution. Second,\nimproving user experience through digitalisation of services, product\nsimplification, cost efficiency, and process speed. Third, strengthening\nreal economic impacts on households, SMEs, and productive sectors.<\/p>\n
The necessary transformation is a shift from compliance-based finance\nto impact-based finance. The two-digit target should not be read merely\nas a numbers race. A large market share will only be meaningful if\naccompanied by expanded economic impact. Because market share without\nmarket impact ultimately becomes just statistical pride.<\/p>\n
Responding to a Changing World<\/p>\n
Amid a world that is increasingly fragmented and full of uncertainty\nturmoil, Indonesia needs sources of growth that are more resilient and\ninclusive.<\/p>\n
Islamic finance has a very strong conceptual capital to address these\nchallenges. Its character based on real assets, principles of prudence,\nand orientation towards beneficial productive sector financing makes\nthis sector relevant in times of turmoil.<\/p>\n
Its role in SMEs, people\u2019s housing, the halal industry,\ninfrastructure, and green energy transition must become the main face of\nIslamic finance rebranding. Instruments like green sukuk have proven\nIndonesia as a global champion while positioning Islamic finance as a\ncredible and sustainable source of development financing.<\/p>\n
Going forward, integration between Islamic banking, the sharia\ncapital market, and Islamic social finance needs to be strengthened to\nmove as a complete development ecosystem.<\/p>\n
Time to Exit the Niche<\/p>\n
In the end, the future of Indonesian Islamic finance is not\ndetermined solely by the size of the Muslim demographic. What is more\ndetermining is the courage to exit the single-digit trap and rebuild its\nrelevance amid a changing world.<\/p>\n
From symbol to real solution.<\/p>\n
From niche to mainstream.<\/p>\n
From compliance to development impact.<\/p>\n
Amid global turmoil, that is where the greatest opportunity opens\nup.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/global-crisis-as-a-starting-point-for-rebranding-islamic-finance-1775609616", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }