SBY Pushes Sharia Industry to Fund Infrastructure Development

TEMPO.CO, Jakarta - President Susilo Bambang Yudhoyono hopes that Islamic financial institutions can contribute more in financing infrastructure development. To date, the total amount of money that has been disbursed for the Acceleration and Expansion of Indonesia Economic Development (MP3EI) program had reached Rp737 trillion. Yudhoyono hopes that the legal infrastructures that have been issued can encourage the strengthening of Sharia banks.

"Since 2008, the government through the Ministry of Finance has been regularly issuing bonds for the Sharia market," Yudhoyono says during the Declaration of Sharia Economic Movement in Jakarta, yesterday.

SBY says that that by developing the Sharia economic system, the national economy would be stronger in facing the global economy's vulnerability. Because the principle of profit sharing in Sharia economy has actually been in the Indonesian culture for a long time; for example the term maparo, or the half-and-half portion.

Bank Indonesia Governor Agus Martowardojo said that Sharia economy had been proven to be resilient amidst crisis. The total asset of the Sharia finance industry reaches US$1.6 trillion, with an average annual growth of 20 percent.

In Indonesia, the growth of Sharia banking asset reaches 38 percent, exceeding the national banking growth of around 18 percent. However, the value of Sharia banking asset only accounts for 4.9 percent out of the total national banking asset.

Meanwhile, Muliaman Hadad, head of the Sharia Economic Community who is also the Financial Services Authority's (OJK) Commissioner Board Chairman, said that the main challenge for Sharia banking is long and short term financing. Therefore, he said, synergizing Sharia financial agencies is a crucial matter.

MARTHA THERTINA