Inaugurating the Opening of the 19th Anniversary of AASI, Vice President Hopes the National Sharia Insurance Industry to Lead the Regional Market

Jakarta, wapresri.go.id – The insurance industry in Indonesia would face the implementation of the ASEAN Framework Agreement on Services (AFAS) which aims to remove restrictions on trade in services among ASEAN countries. This momentum could be an opportunity to increase the prospects of the sharia insurance industry in Indonesia to the regional level, because with the agreement, the Indonesian sharia insurance industry was allowed to market sharia products directly to countries in the ASEAN region. This was conveyed by the Vice President when inaugurating the 19th Anniversary of the Indonesian Sharia Insurance Association (AASI) at the Vice President’s Palace, Jl. Medan Merdeka Selatan No. 6, Jakarta, Thursday (18/08/2022).

“The national sharia insurance industry should be able to take advantage of this momentum by continuing to prepare, to be more competitive and efficient, so that it can compete, and even lead the sharia insurance market at the regional level,” said the Vice President.

To support efforts to improve the sharia insurance industry, the Vice President outlined five messages, namely: that AASI should continue to encourage people’s sharia financial literacy, especially sharia insurance, optimize digital technology to strengthen Indonesia’s sharia insurance, create attractive products for Indonesia’s productive generation, increase quality and capacity of human resources in sharia finance/insurance, as well as take an active role in supporting MSME actors, both in terms of business protection and literacy.

In addition, to encourage sharia financial inclusion, the Vice President emphasized the existence of innovation in the form of diversifying sharia insurance products, one of which was by providing micro insurance products with more economical payment systems or even those that are not available in conventional insurance products.

“It has been proven that many industries have succeeded in playing at the micro product level, so it is necessary to create micro product innovations with a lighter and affordable payment system,” he said.

Thus, added the Vice President, Islamic insurance could play in the right market because it had products that were not widely offered by conventional insurance.

As the Daily Chairman of the National Committee for Sharia Economy and Finance (KNEKS), the Vice President also requested that the KNEKS working program be developed and all parties could work together and work faster, including for the strengthening and development of Islamic financial services industry.

“The existence of sharia insurance is important to encourage the development of the Indonesian halal product industry, including for MSMEs, so that they are more competitive in the domestic and international spheres,” he said.

Closing his remarks, the Vice President as Chair of the AASI Advisory Board, who had been in the sharia industry for a long time, gave his appreciation and encouraged the sharia insurance industry in Indonesia to grow.

“Ending this speech, I would like to congratulate the Indonesian Sharia Insurance Association which has been established for 19 years. Entering this age, I hope that the Indonesian Sharia Insurance Association will show more progress, bring benefits and blessings to all Indonesian people,” he concluded.

Previously, Chairman of AASI Tatang Nurhidayat said that AASI had prepared the implementation of AFAS in the national sharia insurance industry. On this occasion, AASI hopes to be involved in the formulation of policies related to the sharia insurance industry.

“We have prepared ourselves for the implementation of AFAS and partnered with associations from abroad. We hope that AASI will be involved in drafting regulations related to sharia insurance, so that these regulations can have a good impact, especially for the sharia insurance industry,” he said.

Also present at the ceremonial event were the Director of Sharia Ecosystem Infrastructure KNEKS Sultan Emir, the AASI Advisory Board, the AASI Daily Management Board, and the Association Member Directors.

While the Vice President was accompanied by the Head of the Vice President Secretariat Ahmad Erani Yustika, Special Staff for Communication and Information Masduki Baidlowi, Expert Team for the Vice President Iggi Haruman Achsien, Special Staff for the Vice President for Economics and Finance Lukmanul Hakim, and Assistant of Special Staff for the Vice President Sholahudin Al Aiyub. (DMA-BPMI Setwapres)