In Indonesian Banking, Rise in Religious Conservatism Ripples Across Sector

A rise in religious conservatism in Indonesia is drawing talent away from what some view as un-Islamic jobs in banking, industry professionals say, creating hiring woes for conventional banks but a boon for the country’s fledgling sharia finance sector.

The trend comes amid broader societal change in the world’s biggest Muslim-majority country, driven by millions of young, ‘born-again’ Muslims embracing stricter interpretations of Islam. Reuters spoke to a dozen industry sources over how concern about Islamic law barring exploitative interest payments, known as “riba,” is reverberating through the world of Indonesian finance. Since 2018, hiring for banks and fintech companies in peer-to-peer lending, payments and investment platforms has been more challenging, said Rini Kusumawardhani, a finance sector recruiter at Robert Walters Indonesia.