TEMPO.CO, Jakarta - Indonesia's Financial Services Authority (OJK) has issued three latest guidelines about sharia banking products. The Executive Head of Banking Supervision at OJK, Dian Ediana Rae, launched these three guidelines during the peak agenda of the 2024 Annual Sharia Banking Meeting in Banda Aceh, on Friday, October 25, 2024. The issuance aims to develop sharia banking products that offer different value propositions from conventional banking.

The three guidelines issued are the Mudarabah Financing Product Guidelines, Shariah Restricted Investment Account (SRIA) Implementation Guidelines with Mudharabah Muqayyadah Contract, and Cash Waqf Linked Deposit (CWLD) Implementation Guidelines. Dian stated that this step is one form of OJK's commitment to strengthen the characteristics of sharia banking by developing the uniqueness of sharia products in line with the Sharia Banking Development and Strengthening Roadmap of Indonesia (RP3SI) 2023-2027.

"These Product Guidelines prepared by OJK are expected to provide guidance for the industry and relevant stakeholders in the implementation of sharia banking products, thus providing a common view and understanding during the implementation," said Dian in a written statement on Sunday, October 27, 2024.

Meanwhile, mudarabah financing products are based on profit-sharing cooperation. Dian believes that the characteristics of this financing can provide a concept of fairness for banks and customers.

On the other hand, the SRIA product with mudharabah muqayyadah contract is an investment scheme where risks are borne by the investor. Dian stated that this is a follow-up to Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK) which distinguishes between investment products and savings products in sharia banking.

Furthermore, Cash Waqf Linked Deposit (CWLD) is a temporary money endowment-based product. CWLD involves the role of a Nazhir (manager of endowment property) of money endowment and a sharia bank as the Sharia Financial Institution Receives Money Endowment (LKS-PWU) in structuring waqf programs.

Based on OJK data, the current condition of sharia banking reflects a stable and positive growth trend. Assets, Financing, and Third-Party Funds (DPK) in sharia banking continue to show double-digit growth. As of August 2024, assets grew by 10.37 percent year on year (yoy) to Rp902.39 trillion.

Meanwhile, financing grew by 11.65 percent yoy to Rp620.33 trillion and DPK also grew by 11.42 percent yoy to Rp705.18 trillion. OJK stated that the resilience of sharia banking remains strong, reflected in the capital adequacy ratio (CAR) at 25.6 percent. This resilience, according to OJK, is also supported by good financing quality and stable profitability.

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