The Sharia Financial Management Study Program (MKS) of the Faculty of Economics and Business, UIN Sunan Kalijaga held its annual Public Lecture under the theme “Fintech and the Sharia Financial Industry.” The selection of this theme reflects the current trend of the digital era in the financial industry, driven by the emergence of financial technology (Fintech). This trend has sparked a crucial question: can the rise of financial start-up companies complement and bolster the growth of the Sharia financial industry, or do they pose a threat and impede its progress? The aim of the public lecture was to provide students with answers, explanations, insights, and a comprehensive understanding of the direction, challenges, and opportunities of Fintech in Indonesia.
The public lecture was held on Wednesday (12/09) at the Convention Hall, 2nd Floor of UIN Sunan Kalijaga Yogyakarta, attended by leaders, lecturers, and students of the Sharia Financial Management Study Program of the Faculty of Economics and Business, UIN Sunan Kalijaga. The event commenced with the recitation of holy verses from the Quran, followed by the rendition of the Indonesian national anthem “Indonesia Raya,” and the UIN Sunan Kalijaga Hymn, all of which aimed to instill spiritual, national, and institutional values. Unlike previous public lectures, this event was uniquely designed as an “online lecture,” utilizing the evolving social media platforms. In other words, individuals from anywhere could virtually access and participate in the public lecture through live streaming on the Instagram account of the MKS Study Program Student Association, without the need to be physically present.
During his speech, Yazid Afandi, M. Ag., the Head of the MKS Study Program, emphasized that the current issue being addressed is of utmost relevance and must be comprehensively understood and mastered by MKS students. He expressed his hope that through this event, students would gain valuable insights and inspiration to advance the provision of Sharia financial services amidst the digital era and the 4.0 industrial revolution.
“Creative input from Islamic financial institutions and stakeholders is essential to develop products that are widely accepted, genuinely needed, easy and secure to transact with, and, most importantly, in line with Sharia principles and values,” he said.
He is confident that this step will enable Islamic financial institutions to compete in a healthy and competitive manner, and to continue their rapid development, overcoming the waves of financial crises that have long undermined national economic stability.
This public lecture featured two competent speakers in the field of economics and finance. The first speaker was Bhima Yudistira Adinegara, a researcher at the Institute for Development Economics and Finance (INDEF). He had been a frequent presence on television screens across the archipelago, offering insights and solutions to the then-current economic challenges facing Indonesia. Adinegara conveyed that the development of the Fintech industry is inseparable from the active use of smartphones, which account for 67% of the total population of Indonesia. He also highlighted the parallel growth of Fintech and e-commerce in Indonesia, while pointing out the challenges and opportunities for Fintech start-up companies, particularly in regions where the benefits of Fintech were not yet fully realized. Notably, he underscored the significant role of the millennial generation in shaping the landscape and sustainability of Fintech, citing the example of Amarta, a Shariah-compliant Fintech start-up that had gained widespread acceptance despite not being explicitly labeled as such. Adinegara concluded from INDEF’s research that Fintech had both positive and negative impacts on the national economy.
He stressed the importance of supporting, developing, and refining the positive aspects of Fintech to enhance user satisfaction, while also emphasizing the need for reevaluation, study, improvement, and testing to address the negative aspects and ensure that Fintech continued to support Indonesia’s Digital Economy.
The second speaker was Abdul Qoyum, S.E.I., M.Sc., Fin., a lecturer at the Faculty of Islamic Economics and Business UIN Sunan Kalijaga. He is known for his active and highly productive contributions to scholarly works in the field of Islamic economics and finance. During his presentation, he expressed concern about Indonesia, which has the largest Muslim population in the world, lagging behind other countries in the growth and market share development of Islamic banking. In his opinion, Fintech is a permissible technological innovation in digital financial services within Islam. He highlighted the significant benefits and maslahah it brings to the people. He believes that Fintech offers an alternative solution for creating easier, faster, and more efficient Shariah financial transactions. Furthermore, he pointed out that Indonesia’s abundant natural resources present a golden opportunity for the country to become the center of the global halal industry. Prior to concluding his presentation, he stressed the potential for promoting halal food, halal fashion, and halal tourism towards the Global Islamic Economy.
As the moderator of this public lecture, Izra Berakon, M.Sc., and Syintia Dwi Utami outlined at least five forms or models of Fintech start-up companies that had been operating in Indonesia, such as Crowdfunding (kitabisa.com), Microfinancing (indves.com), P2P Lending (uangteman.com), Market Comparison (finansialku.com), and Digital Payment System (Doku). In conclusion, they summarized and answered the previously raised question, stating that the presence of Fintech in the Islamic Financial Industry was not as a substitute that threatened each other’s positions and standings, but rather, the presence of Fintech resembled a complementary good that synergized and complemented each other. (IB/SDU/AN)
The material can be downloaded here and here.