DIGITAL ISLAMIC FINANCE IN INDONESIA: CHALLENGES AND OPPORTUNITIES FROM A PUBLIC POLICY PERSPECTIVE
DOI:
https://doi.org/10.53840/ijiefer237Keywords:
Islamic FinTech, Indonesia, Digital FinanceAbstract
Digital Islamic finance has emerged as a strategic instrument for advancing inclusive and ethical financial systems in Indonesia. This study examines the institutional and public policy dynamics shaping the sector during the period 2016-2025, using qualitative content analysis of laws, policy frameworks, and institutional reports. The findings highlight key developments, including Law No. 4/2023, the Digital Sharia Banking Roadmap (RP3SI), and initiatives by OJK and KNEKS that support financial inclusion, green Sukuk, and sustainability-oriented finance. However, persistent challenges remain, notably regulatory fragmentation, unequal digital infrastructure, and limited ESG–Shariah integration, which constrain broader impact, particularly in rural areas. The study concludes that while top-down reforms have established a strong policy foundation, achieving sustainable and inclusive outcomes requires coordinated regulation, local-level implementation, and strengthened public trust in digital Islamic finance.
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