Jakarta: Deputy Governor of Bank Indonesia, the country’s central bank, Halim Alamsyah, officially opened the second international seminar on Islamic finance, 7-8 May 2012, in Bandung.

The seminar was themed ‘Can Islamic Finance Focus on Productive Economic Activities to Promote Growth & Financial Stability’. President of the Islamic Development Bank (IDB) Group, HE Dr Ahmed Mohammed Ali was the keynote speaker.

The Deputy Governor forecast that Sharia-compliant banking could account for 15-20 per cent of Indonesia’s banking industry within 10 years, from just over four per cent currently. “We are confident Syariah (Sharia) finance will stimulate economic growth to a higher level and enhance the stability of the financial system,” he said at the opening of the Seminar in Bandung.

Indonesia’s Islamic finance assets were worth IDR 214 trillion ($23.2 billion), of which around 69.5 per cent are banking assets. Indonesia has 11 Sharia-compliant commercial banks, 24 Sharia bank business units and 155 Sharia-compliant rural banks (Bank Perkreditan Rakyat) with total assets of IDR 152.3 trillion (about US$16.5 billion).

Halim said Bank Indonesia is ‘very serious’ in its efforts to expand Islamic finance, especially banking, is confident that it could contribute greatly to economic growth, financial system stability and social well-being.

Issues discussed at the Seminar in Bandung included:

• enhancing the role of authorities in realizing the virtue of Islamic finance towards sustainable

economic development;

• revisiting current banking businesses and designing an enhanced banking model with optimal

support for the real sector;

• extending financial services to larger parts of society for more balanced and sustainable

economic growth;

• improving business values through Islamic finance (the preferred values and opportunities);

and challenges and opportunities in developing Sharia-compliant products to promote productive economic activity. Speakers and participants came from more than 11 countries including Turkey, UAE, Saudi Arabia, Bangladesh, Hong Kong, Bahrain, Thailand, Japan, Iran, Brunei, Malaysia, Singapore and Indonesia.

The attendees include Board Member of the Central Bank of Turkey, Dr Lokman Gunduz; Head of BIS Asia Pacific, Dr Eli Remolona; Head of OREI, Asian Development Bank, Prof Dr. Iwan Jaya Aziz; the Governor of West Java, Dr (HC) Ahmad Heryawan; the Director General of the Indonesian Debt Management Office, Mr Rahmat Waluyanto; CEO of the International Islamic Financial Market (IIFM), Mr Ijlal Alvi; Dr Milani Zivadjil from the International Monetary Fund; as well as Prof Dr Iraj Toutounchian from Iran, an expert on Islamic Economics and Finance.

Home | Top of the Page

In Depth

Islamic finance gives universities a bonus

With global finance on its knees, this summer's business graduates face an even trickier jobs market than most. But there is one area of banking still experiencing boom time – Islamic finance – and universities have been quick to grasp its possibilities.   »

Lack of experts, no regulatory authority hinder growth of Islamic Finance

Global Islamic finance industry worth over $1tr in asset terms

‘Don’t let the name scare you. Islamic banking is beneficial for all'

Encouraged by the results, other international banks like HSBC and Barclay have also introduced special windows. These windows have facilities for the people interested in dealing on the principles of Islamic Shariah. Likewise is the Islamic Bank of Britain. The very concept of these banks is that they are following the Islamic principles,  »

Learn from Islamic banking success stories: Rahman Khan

IDB, Insaniah varsity launch master's degree program in Islamic finance

  Related Articles

People from other religions too opting for halaal foods

Health concerns see members of other religious groups seeking advice on suitable foods. Non-Muslims are becoming part of the estimated 635-billion worldwide halaal (permissible) market, South African National Halaal Authority (Sanha)  »

Iran announces new Islamic internet

Iran has announced it would launch an Islamic internet to counter the influence of the US-dominated world wide web. "Iran will soon create an internet that conforms to Islamic principles, to improve its communication and trade links with the world," Ali Aqamohammadi, head of  »

Iran to launch national internet in August

  Archives

Shariah Index launched, BSE hopeful of quick returns

The Bombay Stock Exchange, Asia’s oldest trading floor, along with the Mumbai-based Taqwaa Advisory and Shariah Investment Solutions on Monday launched an index comprising shares, of   »

Indian Muslim traders welcome sharia-compliant share index

Nigeria issues license to first Islamic Bank

The Central Bank of Nigeria (CBN) June 21 has issued provisional license to Jaiz International Bank to launch Nigeria's first Islamic bank, a media report said. The CBN has given the license to Jaiz International Bank subject to fulfilling the bank authorization  »

Islamic banking thrives in financial crisis

Islamic banking has emerged as one of the most rapidly expanding sectors of the global financial industry, with expectations that it will play a growing role in the years to come.Banks and financial institutions that comply with Islamic law (sharia) showed impressive resilience   »

Equity Market: An investment option the Islamic way

In order to remain in the main stream of the economy and have equitable investment opportunity, equity stock market (The Islamic way) provides the most cost effective investment solution for the Muslims. Hence they should take advantage of the boom in the equity market of the country so that they are not left behind in the economic growth that is being witnessed  »

Picture of the Day

Dr Shariq Nisar, Director of Research and Operations of India’s premier shariah advisory firm TASIS and one of the senior most professionals of Islamic Finance in India, was in Malegaon on Sunday to address a seminar on "Prospects of Islamic Finance in India".

(Photo: ummid.com)