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
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
• 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
• 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.
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.