http://www.thejakartapost.com/news/2009/03/02/sby-future-sharia-banking-indonesia.html
SBY: Future of Sharia banking in Indonesia The Jakarta Post , Jakarta | Mon, 03/02/2009 2:48 PM | Business The Sharia banking system can offer Indonesia hope in the midst of the current global economic slowdown because Islamic banking has not been affected, the President said at the opening of the World Islamic Economic Forum (WIEF) in Jakarta on Monday. "Islamic banking should take a front seat because it has not been affected by the crisis," President Susilo Bambang Yudhoyono said. Yudhoyono added that recently many countries in the West had warmed to Sharia branking because it does not incorporate dubious assets in investments and is risk-free. "In the West, Sharia banks have a mission because countries are increasingly welcoming them," Yudhoyono said, as quoted by kompas.com. The domestic Sharia banking industry has shown promising growth results, which have been increasing from year to year, he said. "We hope in future Indonesia will serve as a Sharia economic hub. We invite investors to develop this sector." According to data at Bank Indonesia, the amount of financing provided by the country's Islamic banking institutions had grown from a mere Rp 5.53 trillion in 2003 to Rp 27.94 trillion in 2007 and Rp 38.19 trillion in 2008. The 2008 figure constituted about 3 percent of the total amount of national bank financing. The amount of assets managed by the country's sharia banks also rose from 1.4 percent of the country's national bank assets in 2005, to 1.6 percent in 2006, 1.8 percent in 2007 and 1.8 percent, or about Rp 50 trillion in 2008. The central bank said there were currently 1,470 sharia bank offices across the country, and that they had disbursed Rp 326 billion in loans for micro- and small-scale firms as of the end of 2008. (amr) .
