Sharia fintech in Indonesia seeing early boom, but VCs need convincing

Sharia fintech in Indonesia seeing early boom, but VCs need convincing

Graphic: DEALSTREETASIA/Ipsita Ray

When the Indonesian financial authority OJK decided to consult the religious authority about the legality of sharia-compliant fintech startups late last year, it was an early indication of a perceived rise in the sector, following the lead of neighbour Malaysia.

The growth of sharia fintech in Indonesia has been rapid. In fact, the country’s Sharia Fintech Association, which was established only in February, already has 28 members. This number does not include the conventional players that have, or are planning to, launch sharia products to tap the Muslim market.

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