Islamic Finance Responds to the Millennial Muslims’s Challenges
18 June 2021

Jakarta, KNEKS – KNEKS collaborates with Indonesian Sharia Bank Association (ASBISINDO), the Indonesian Sharia Insurance Association (AASI), the Indonesian Sharia Fintech Association (AFSI), and supported by the Indonesian Sharia Bank (BSI) held a Millenial Muslim Megashifts Webinar: Accelerating The Formation of an Economic Sharia Ecosystem in Indonesia, Wednesday (16/6). 

Indonesia as a country with the largest Muslim population in the world has the potential for a demographic bonus. " From 270 million people in Indonesia, the number of Generation Z has been reaching 27.9% and millennials 25.87%, it means that more than 50% of Indonesia's population are in a productive age," said Ventje Rahardjo, Executive Director of KNEKS, in his key remarks delivered at the beginning of the webinar. 

However, the Covid-19 pandemic has created impacts on the demographic bonus. "Millennial Muslims are experiencing a significant behavioural shifting, specifically due to the pandemic Covid-19," Yuswohady explained, Managing Partner of Inventure. Furthermore, Yuswohady explained that the Muslim Millenial's behavioural shifting is summarized into five aspects: Spiritual, Safety Security, Screen, Self Expression, and Social.  

The demographic bonus and Muslim millennial's behavioural shifting could become a big market potential for the development of the Islamic finance industry if it is followed by an optimal strategy from stakeholders. "today everything can be served via digital, even costs of sharia banking can be emphasized with technology, hence the behavioural shifting that happened recently must be anticipated and be able to adapt," said Herwin Bustaman, Secretary-General of ASBISINDO. 

The Indonesian Sharia Fintech Association (AFSI) contributes by utilizing various financial sectors, enabling technology to advance Islamic finance. "Technology is a catalyst system that could be providing access for millennials to learn and explore," said Ronald Yusuf Wijaya, Chairman of AFSI. 

Sharia Insurance also conducts campaigns to optimize Muslim Millennial’s behavioural shifting aspects. "By increasing the social desires of millennial Muslims, Sharia insurance principles are already a given, because sharia insurance is halal compliance with its value that helps each other," said Tatang Nurhidayat, General Chairperson of the Indonesian Sharia Insurance Association (AASI). The given value owned by sharia insurance needs to be campaigned more to optimize Millennial Muslims Megashifts. 

Collaboration and joint synergy are important to encourage Millennial Muslims to be more active in accelerating the formation of a sharia economic ecosystem in Indonesia, hence KNEKS facilitates the development of an ecosystem that involves various stakeholders in the Islamic economy and finance.

Authors: Achmad Iqbal
Editor in Chief: Ishmah Qurratu'ain

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