Yudhoyono opens sharia finance expo

President Susilo Bambang Yudhoyono, accompanied by Bank Indonesia's governor Burhanuddin Abdullah (left), officially opened Wednesday a 5-day sharia economic exhibition at the Jakarta Convention Center.

The exhibition, which includes seminars, workshops and bazaars, is aimed at promoting sharia-based banking and financing; the growth of which has remained somewhat sluggish.

Last year, sharia financing grew 30.1 percent, lower than the 34.2 percent recorded in 2006. The country's total sharia-based assets are currently worth Rp 33 trillion (US$3.497 billion), much higher than the Rp 1.7 trillion reached in 2000.

"I expect the country's sharia banking will become a hallmark for the international sharia-banking industry, as Indonesia has the potential to make it happen," Yudhoyono said.

To ensure the growth of sharia-based banking and financing, he added, related ministries and institutions should team up to develop a sharia-based economic system.

The government expects the market share for sharia-based banking to grow by up to 5 percent this year from 1.71 percent last year.

BI governor Burhanuddin is also optimistic the industry would progress further in the years to come. (adt)