54
sharia banking in the national banking industry as well as to continue increasing acceleration and
public acceptance to sharia banking. Sharia banking is expected to continue to grow given the untapped
market potentials are still quite large while programs of promotion and public education on sharia banking
continue to be implemented consistently.
2. Policy Implementation
Act No.21 year 2008 concerning sharia banking assigns tasks to BI as the Authority of banking industry to set
up inance of banking based on the sharia principle. In order to implement the mandate of the Laws, Bank
Indonesia has implemented several policies of sharia banking in various sectors, on the basis of six 6 pillars
in the Blue Print of sharia banking consisting of: i a sound banking structure, ii an efective governance
system, iii an independent and efective supervisory system, iv a solid banking industry, v adequate
supporting infrastructures, and vi customers’ protection. Based on the Blue Print of sharia banking,
in year 2012 BI has implemented various policies of sharia banking in various activities. Those activities
can be grouped into activities in the ield of research, development, regulation, supervision and lincensing
of sharia banks.
In order to further optimize growth potentials and to realize a sound sharia banking and to further
contribute to the stabilization of inancial system and the inancing of national building, BI continues
conducting study and development whether internally, in cooperation with other institutions or
through various forums, seminars and workshops by involving parties from local or abroad. Besides, BI also
takes measures to strengthen banking supervision ensuring sharia banking resilience against risks and to
focus on the areas that tend to be risky. In year 2012, BI has also issued BI Regulation PBI and several Circulars
to enhance the quality of sharia banking.
55
Aside from that, BI also continued making eforts to socialize and educate the society along with relevant
institutions in the form of domestic and international cooperation. Meanwhile, activities of sharia banking
industry development were jointly conducted with speciic institutions related to inance and sharia
banking such as National Sharia Board DSN, industry associations, professional associations and other
relevant institutions; whereas with international institutions, BI continued the cooperation with
international sharia inancial organizations such as IFSB, IIFM, AAOIFI, and International Islamic Liquidity
Management IILM. Implementation of education and cooperation in year 2012 also marked by the
organizing of sharia inancial international seminar for the second time, which is expected to become an
annual calendar of BI.
Enhancement of Efectiveness of Sharia Banking Regulation and Supervision
In year 2012, a review has been conducted to the regulations, i.e. to accommodate development
occurred in accordance with the condition of sharia banking. The said review was conducted with the
intention of synchronizing and harmonizing the applicable regulations, and also recommendations
of international institutions. The review resulted in a recommendation of development andor revision of
the applicable regulations, i.e. i Fit and Proper Test of Sharia Banks, ii FPJPS Sharia Long Term Funding
Facilities for SBUS, iii Qardh loans accepted by sharia principle with Gold Collateral, iv Product of Gold
Ownership Financing for BUS Sharia Commercial Bank and UUS Sharia Business Unit, v Application
of Policy for Housing and Motor Vehicles Ownership for BUS and UUS.
3. Direction of Sharia Banking Development
In order to continue motivating and maintaining the continuity of sharia banking development, BI sees the
need to undertake measures toward the development
56
and policy of sharia banks focusing on the following:
a. Financing of Sharia Banking that More Directed to Productive Economic Sector and
Broader Community In year 2013 sharia banking is directed to develop
services toward the inancing of productive sectors. Some breakthroughs that can be taken
among others by entering the sectors within the priorities especially which listed in the initiatives
of MP3EI Masterplan of Acceleration and Expansion of Indonesia’s Economic Development
among others: construction, electricity and gas, agriculture and creative industry, productive
sector to start up business, and MSMEs sector. To support such moves, it requires competencies
from sharia industry including its SDM human resources and access to information in
obtaining the market of productive inancing. The competencies of Indonesian SDM have
strategic roles in supporting market intelligence both in analysing the inancing and marketing
the appropriate sharia products for the referred productive sector. In this case, BI participates in
bridging knowledge and skill gap that remains a constraint in sharia banking industry, i.e. in the
form of supports among others conducting study on sharia banking business model and inalizing
index of real sector that can be used as benchmark for sharia banking in channelling inancing to the
real sector. Aside from that, eforts to narrow down the gap
will be conducted through trainings, workshops, seminars, or in the form of socializing inter-
community SDM of sharia banking. Nevertheless, it should be realized that the success of
sharia banking to make breakthroughs to the inancing of productive sector requires strong
commitments from sharia banking industry itself. Therefore, sharia banking is expected to prepare
business development plan to productive sectors by taking into account equitable services to all
57
segments of the society, and also to prepare risk control especially risk mitigation according to the
characteristic of the products.
b. Development of Products that Better Meet the Needs of the Society and Productive Sector
BI will prioritize supports for the development of products related to productive sector that can
meet the needs of broader society. Such supports among others are in the form of improvement of
regulations, process of products licenses, study of products and dissemination of knowledge and
skills for inancinganalyst staf in the productive sector through various activities such as workshops
and seminars. Other than that, BI has organized tripartite cooperation forum with National Sharia
Council and Indonesian Accountant Association of Sharia Banking Working Group in accelerating
development of new products or non standard. For the year 2013, this Working Group is
expected to make recommendation concerning Reinancing and Securitization of Sharia Bank
Assets, Islamic Commercial Deposit Sertiikat Deposito Mudharabah Muqayyadah, Non Ready
Stock iB Public Housing Loans Pembiayaan Syariah KPR Indent and Financing of Musharaka
Shika Syndicates.
c. Supervisory Transition that Maintains Continuity of Sharia Banking Development
Year 2013 is a very crucial period in preparing the transfer of regulation and supervision
function of sharia banks from BI to OJK. Several infrastructures are being and will be prepared by BI
to support bank supervision and a good reporting information low, among others development of
Sharia Banking Information System using Risk- Based Bank Rating RBBR concept by adding
two risks related to sharia aspect Risk of Yields and Risk of Investment, LBUS reporting system
using XBRL, and development of various sharia
58
banking provisions related to management of risk concentration, governance or guidance of new
products and activities, where all are expected to strengthen the resilience of sharia banking. BI in
year 2013 will start conducting revision process of sharia banking blue print, and contributing
in the formulation of Indonesia’s sharia inancial architecture, which result is expected to be
the guidelines for OJK, BI or other institutions in developing Indonesia’s sharia inance and
banking.
d. Enhancement of Synergy with Parent Bank by Still Developing Institutional Infrastructure of
Sharia Business Institution Strategy of synergy cooperation between parent
conventional banks with sharia banks has been launched by BI in the policy direction of sharia
banking year 2011, and reinforced in year 2012, namely by the organizing of Sharia Banking
Communication Forum FKPS which was a forum between management of sharia banking and
Sharia Banking Section of BI in mid 2012. In FKPS 2012 board of directors of conventional
commercial banks that own sharia commercial banks were also invited in order to reinstate
commitment of parent banks in the development of their sharia businesses. Through conirmation
of such commitment and strategy as well as policy direction sharia banking it is expected to
align their service levels better with their parent conventional commercial banks BUK among
others through the cooperation in using facilities of technology, oice networks, and SDM.
e. Enhancement of Education and Communitation by Continue Motivating the Improvement of
Sharia Banking Capacity in Productive Sector and also Parity and Distinctiveness Communication of
Sharia Banking Product
