Jakarta Post

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post
press enter to search

The Jakarta Post
Video Weather icon 30°C
DKI Jakarta, Indonesia
30°C Partly Cloudy

Dry and mostly cloudy throughout the day.

  • Wed

    26℃ - 32℃

  • Thu

    25℃ - 32℃

  • Fri

    25℃ - 31℃

  • Sat

    26℃ - 30℃

Sharia banking sees extraordinary development

  • Slamet Susanto

    The Jakarta Post

Yogyakarta | Tue, November 27 2012 | 11:24 am

Sharia banking has been experiencing extraordinary developments in several countries including Indonesia, home to 191 sharia banks. In Indonesia, this particular banking system has been enjoying an average growth-rate of 40.2 percent per year from 2007 to 2011.

The figure was revealed during a one-day seminar on Islamic deposit insurance of the International Association of Deposit Insurers and Islamic Deposit Insurance Group (IADI-IDIG) held in Yogyakarta, on Monday.

“The potential of sharia banking is big,” director of the Risk Management Insurance Indonesia, Salustra Satria, said on the sidelines of the seminar on Monday.

Delegates from seven member countries of IDIG and six member countries of IADI participated in the seminar, which has been held regularly as a medium for exchanging views, discussions and evaluation on the sharia banking system for mutual improvements in the implementation of it.

Participating countries included Sudan, Malaysia, Indonesia, Kazakhstan, Jordan and Turkey. Also joining the seminar were representatives from the World Bank, USAID and International Centre for Education in Islamic Finance (INCEIF).

Roslan Abdul Razak of the INCEIF said that the combined assets of 1,000 sharia financial institutions in 75 countries currently was US$ 1.2 trillion.

“The growth is quite good, 15-20 percent per year. Sharia banking can really be a solution, especially during a global crisis,” Roslan said.

IADI-IDIG chairman Khairuddin Arsyad of Malaysia added that sharia banking could be a solution in a time of global crisis because it was based on the customers’ religious faith.

“Some Muslims trust the sharia system more. With such trust, the sharia system can be the financial system’s global solution, “ he said.

Yet, he did say that trust alone would not suffice. Better services, easy access and collateral are the main keys to success. “Still, we cannot leave the conventional banking system behind because we have a heterogeneous community.”


Join the discussions