INDUSTRY.co.id - Jakarta - The Financial Services Authority (OJK) projects the sharia banking non-performing financing (NPF) ratio to be better or decline in 2018.

"I think next year should be better because there is a financing growth of 10 percent to 14 percent," said Head of Department of Islamic Banking OJK, Ahmad Soekro Tratmono to media crew in Jakarta, Friday (15/12/2017)

He also said that sharia banking has started to improve in 2017, so it will support sharia financing in 2018, coupled with projected economic growth targeted above five percent.

Soekro admitted that Islamic banking NPF is higher than conventional banking. OJK noted that the NPF "gross" of sharia banks per October 2017 reached 4.12 percent while conventional banks 2.96 percent in the same period.

Since quarter IV-2016 until October 2017, the NPF "gross" of sharia banking tends to improve or decline, but it is always above the conventional banking ratio.

Therefore, Soekro appealed to sharia banks to be more careful and selective in financing.

"We are directing to small and medium enterprises because the base is large and suitable for sharia banking financing," he said.

Based on the total data of sharia financial assets in Indonesia, OJK recorded the amount of sharia financing per October 2017 reached Rp35, 63 trillion.