Indonesia has witnessed a growing focus on Sharia-based finance.

Thirty nine-year-old Chinese-Indonesian professional Suandi Huang says sharia-based financial products are more profitable. He is more comfortable saving his income in gold and Sharia.

'€œI chose gold because it'€™s more stable. I also invest in Sharia products as they give you an even bigger profit than other conventional banking products,'€ he mentioned.

Fazlania Zain, 33, a young executive who works for an international institution in Central Jakarta, prefers to save and spend her money in sharia-based financial products.

'€œI have an account in a national Sharia bank. My reason is simple. The product is prohibited from riba [interest] but we receive profit sharing in return. This product cannot be invested in non-halal products. So the benefit that I get will be halal as well,'€ she said.

For some, a sharia-based financial system is more attractive than a conventional banking system. The differences between the two systems lie in the prohibition of interest.

A sharia-based system follows religious principles such as a ban on interest and monetary speculation, as well as a ban on investing in non-halal products or businesses relating to alcohol and gambling. In addition, this system also forbids transactions that involve excessive risks due to uncertainty.

After acclaiming a dual banking system, which allowed the establishment of Bank Muamalat Indonesia as the first fully fledged '€œiB'€ in 1992, the sharia-based banking sector has experienced rapid development, doubling the rate of growth as quickly as its conventional counterparts.

There are 11 sharia-based banks in Indonesia with combined assets of 229.5 trillion rupiah ($18.96 billion) as of October, compared with 120 conventional lenders with assets of 4,716.8 trillion rupiah, central bank data showed.

However, as reported by Indonesia'€™s central bank, the sharia-based finance share in Indonesia still has a lot of room for improvement. Indonesia is a potential market for sharia-based finance products since it is the world'€™s largest Muslim-majority country. Indonesian Islamic lenders hold about 5 percent of total banking assets compared to more than 20 percent for their Malaysian counterparts.

'€œBank Indonesia [BI] continues to boost the growth of sharia-based banking assets in Indonesia,'€ said International Department Bank of Indonesia executive director Aida S. Budiman.

BI is committed to promoting the sharia-based financial system, the products of which have become a strong alternative to the commonly acceptable conventional banking system in Indonesia, making Indonesia a global center of economic and sharia-based finance.

In 2014, Indonesia will host a meeting for central bank governors from 50 countries of the Islamic Cooperation Organization (OIC). The meeting is linked to the 2014 Indonesia Sharia Economic Festival (ISEF) in Surabaya on Nov. 3-9.

Expos, fun sessions and education activities for the public will also be presented at this festival.

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