Prof.Euis Amalia Presents Strategies for Developing Islamic Finance in the Digital Era at Sharif 2024

JAKARTA, INDONESIA – Professor Dr. Euis Amalia, M.Ag., Professor at UIN Syarif Hidayatullah Jakarta, was one of the speakers at the Sharia International Forum (Sharif) 2024. The forum took place at the Mercure Convention Center Ancol, North Jakarta, from November 20 to 22, 2024, with the overarching theme “Sharia Services by the Government Towards Mashlahah ‘Ammah”. The event was also attended by prominent figures such as the Minister of Religious Affairs of Indonesia, Prof. Dr. KH. Nasaruddin Umar, M.A., and the Secretary General of the International Islamic Fiqh Academy (IIFA), H.E. Prof. Koutoub Moustapha Sano, who were keynote speakers.

At this forum, Prof. Euis Amalia presented a highly relevant topic in line with current technological developments: “Strategies and Challenges in Developing Islamic Finance in the Digital Era”. She emphasized how digital technology can be an effective tool to expand access to Islamic financial products and services while remaining aligned with the principles of Sharia.

1. Utilizing Financial Technology (Fintech) in Islamic Finance

Prof. Euis Amalia explained that fintech, or financial technology, is one of the best solutions to enhance efficiency and accessibility in Islamic finance services. With the advancement of technology, the Islamic finance sector can more easily reach a wider audience, especially those in remote areas previously underserved by traditional financial services. The use of fintech in Islamic banking, peer-to-peer lending, and Sharia-compliant investments are tangible examples of how technology can be integrated into a financial system that upholds Sharia principles.

2. Maintaining Compliance with Sharia Principles

However, Prof. Euis Amalia emphasized that innovations in the fintech sector must still adhere to Sharia principles, such as the prohibition of riba (interest), gharar (uncertainty), and maisir (gambling). Islamic finance in the digital era must leverage technology to offer products and services that are not only efficient but also comply with these principles. Therefore, it is crucial to have strict regulations and oversight from financial institutions and regulators to ensure that the products offered are in accordance with Sharia guidelines.

3. Data Security and Customer Privacy

In the digital world, data security and privacy issues are of paramount importance. Prof. Euis Amalia reminded the audience that the use of technology in Islamic finance services must be accompanied by maximum protection of customer data. Transaction security and financial data are highly sensitive matters, given the immense trust that the public places in these services. Therefore, every Sharia-compliant digital finance platform or application must have a robust and transparent data protection system.

4. Increasing Sharia Financial Literacy and Inclusion

To fully capitalize on the potential of fintech in Islamic finance, Prof. Euis Amalia stressed the need to enhance Sharia financial literacy. The public must be adequately educated on how to access and use digital Sharia financial products. Additionally, financial inclusion is crucial, as Islamic finance must be able to reach various segments of society, including those who have yet to access formal financial systems.

5. The Role of Government in Supporting Digital Islamic Finance

The government plays a key role in creating regulations that support the development of digital Islamic finance. Prof. Euis Amalia emphasized the importance of policies that encourage innovation while maintaining Sharia compliance. Proper regulation will provide a sense of security for the public and industry players in developing Sharia-compliant products and services that meet market demands.

Prof. Euis Amalia’s presentation at Sharif 2024 made a valuable contribution in formulating solutions to the challenges and opportunities in the development of Islamic finance in the digital era. By implementing the right strategies, digital Islamic finance can grow rapidly and provide greater benefits to society, while preserving the integrity of Sharia principles that form its foundation.