Joko Widodo

#Indonesia takes big step towards #boosting I#slamic #finance industry

Indonesia, that is so far a behind in developing a comprehensive Islamic finance industry, has taken a big leap towards the creation of a supportive framework for Shariah-compliant banking end of July. On that day, the country’s President Joko Widodo inaugurated the National Committee for Shariah Finance, as part of the government’s push to make Indonesia a global hub for the Islamic financial industry.
It has been tasked to accelerate, expand and develop Shariah-compliant financial services to support the country’s development, National Development Planning Minister Bambang Brodjonegoro said in a statement. The ministry is the one that introduced its master plan for the development of the country’s Islamic finance future last year.

New #Efforts to #Boost #Sharia #Banking in #Indonesia

Although between 85 and 90 % of the Indonesian population is Muslim, Islamic banking, also known as sharia banking, remains underdeveloped in the country. In 2016 sharia banking assets only accounted for 5.3 % of total assets in Indonesia's banking sector. But at the same time in countries like Saudi Arabia and Malaysia these figures are much higher at 51.1 % and 23.8 %, respectively.
In order to boost Islamic banking in his country, President Joko Widodo formed the National Committee for Sharia Finance. This institution was installed to investigate and tackle the challenges surrounding sharia banking in Indonesia. Together with the Indonesian Islamic Economy Expert Association, KNKS is tasked to unite the vision and strategy of all stakeholders in this industry and turn the country into a global center for Islamic banking.
General Chairman of the IAEI Bambang Brodjonegoro said, the challenges in Indonesia's Islamic banking industry involve both the supply and demand side. The lack of business sectors that are based on Islamic banking makes it tough for the industry to develop, he added.

Govt to establish committee for Islamic finance development

In #Indonesia high-ranking officials announced they were preparing to establish the National Committee of Sharia Finance (KNKS) that would be directly chaired by President Joko Widodo. Bank Indonesia Governor Agus Martowardjo noted that human resources quality would determine the success of the KNKS, including its system and management’s regulation. He added that the committee would be established this month and also aims to involve 22,000 Islamic boarding schools across the archipelago. Boarding school graduates will be expected not only to become knowledgeable in religious affairs, but also to understand sharia economics and develop their entrepreneurship skills.

#Indonesian #fintech event IFFC 2016 is set to champion financial inclusion

Indonesia is all set to host the Indonesia Fintech Festival & Conference 2016 (IFFC 2016). The event is organised by Indonesia Financial Services Authority (OJK) in association with Indonesian Chamber of Commerce and Industry (KADIN) and will be held in Tangerang from August 29 to 30. IFFC 2016 will focus on several issues related to fintech, including financial inclusion. A series of workshops and conferences for fintech players will be conducted. Also, a startup competition will take place as part of the event. Indonesia’s President Joko Widodo and Queen Maxima of the Netherlands will be special guests. According to the organising committee, up to 2,000 tickets have been sold so far.

What's driving #sukuk activity in #Indonesia?

Indonesia's sukuk market is thriving. The Southeast Asian nation raised US$2.5 billion from its sale of US dollar Islamic bonds in March, snatching orders for over three times the amount offered. It was the biggest ever Asian US dollar sukuk offering. Indonesia’s government is speeding up investment in roads and railways amid pressure from President Joko Widodo. Even with a reduced allocation this year, Indonesia’s Public Works Ministry has spent a bigger proportion of its budget in the first half compared with 2015.

ICD and OJK support in transforming the Islamic finance industry in #Indonesia

The seminar 'The Transformation of the Islamic Finance Industry in Indonesia' was held by the Islamic Corporation for the Development of the Private Sector (ICD) in collaboration with Financial Services Authority (OJK). President Joko Widodo’s has repeatedly called for the revival of growth in Indonesia’s Islamic finance industry, which is currently being hindered by fragmented regulations. Through this seminar, ICD and OJK aimed to impart the know-how related to the implementation of Shari’ah standards.

Jokowi Discusses Infrastructure Funding, Shariah Banking with Islamic Development Bank

President Joko Widodo has laid out his invitation for increased foreign investment in Indonesia before the Islamic Development Bank, which already has sizeable interests in the country. Joko, on a tour of the Middle East, met with Jeddah-based IDB president Ahmad Mohamed Ali to discuss a wide range of topics, from ways to finance infrastructure projects and increase investment by Middle East countries into Indonesia, to expanding the nation’s Islamic banking industry. The IDB currently finances nearly $4.2 billion in development projects in Indonesia. The group is also processing a member-country partnership strategy with Indonesia for the 2015-2019 period.

President Jokowi hopes Indonesia to become shariah financial center

President Joko Widodo (Jokowi) has expressed hope that Indonesia will become a shariah financial center in view of the countrys huge potentials. He spoke at the launching of the "I Love Shariah Finance" campaign initiated by the Financial Service Authority (OJK). OJK chairman Muliaman D Hadad said that although the shariah finance has grown fast it is still relatively small compared to other national financial services. He said 12 shariah general banks with 22 shariah units in the country are owned by conventional banks and 163 shariah BPRs (local banks) with total assets worth Rp264.81 trillion and a market share of 4.88 percent. Until March 2015 total shariah shares traded at the shariah capital market reached Rp3,037.46 trillion with corporate bonds reached Rp7.1 trillion and shariah mutual funds Rp11.7 trillion.

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