Jakarta (ANTARA) - Indonesia's and Malaysia's central banks have agreed to increase cooperation in the development of Islamic finance including shariah banking that is enjoying fast growth.
"Islamic finance such as shariah banking is no longer complementary but has become a financing alternative. So, cooperation, synergy or collaboration is needed between shariah banks in Indonesia and Malaysia to improve quality and expand markets," Bank Indonesia Governor Darmin Nasution said here on Monday.
He made the statement at the opening of a conference of senior Islamic financial officials from Bank Indonesia and Bank Negara Malaysia attended by Indonesian Vice President Boediono and the governor of Bank Negara Malaysia, Zeti Akhtar Aziz, and King Naznin Shah of the Malaysian state of Perak who is Malaysian Islamic financial ambassador.
Darmin said the conference would discuss shariah technical issues such as view difference in shariah principles in Indonesia and Malaysia, accounting standards and others.
He said Indonesia needs to learn a lot from Malaysia where Islamic finance had advanced including sukuk (Islamic bonds) market which now controlled 72 percent of the world's sukuk market.
"Islamic finance industry in Malaysia has advanced, while Indonesia is a potential market in view of its majority population which is Moslem. So, we will elaborate all Islamic financial structures," he said.
Zeti meanwhile said the cooperation between Indonesia and Malaysia to build shariah financial industry was very important in view of the contribution of Islamic finance which is growing bigger in the global economy.
"The Islamic financial system is growing more important in the global economy. So it is important for us, Malaysia and Indonesia as well as other Asian countries to use the opportunity well," he said.
He said the Islamic finance has a strategic opportunity to develop economic growth so that cooperation is needed to develop it.
"The Islamic finance will strengthen the welfare and properity (we wish to achieve)," he said.
Bank Indonesia deputy governor Halim Alamsyah said the discussion with Bank Negara Malaysia would also cover technical aspects of shariah banking such as shariah compliance and shariah base approaches.
"The two approaches will be formulated to maintain superiority of shariah banking," he said.
COPYRIGHT © ANTARA News Jawa Timur 2011
COPYRIGHT © ANTARA News Jawa Timur 2011