In its unwavering efforts aiming to foster ties with all stakeholders of the Islamic finance industry worldwide, and particularly its institutional members in the categories of regulatory and supervisory authorities and Islamic financial institutions (IFIs), AAOIFI has wrapped up an official visit to the Republic of Indonesia. The visit included meetings with Indonesia’s regulatory and supervisory bodies as well as meetings with AAOIFI’s institutional members in that country where possible means of fostering mutual ties were discussed.

The visit commenced with a meeting with the Financial Services Authority (Otoritas Jasa Keuangan), the body that regulates and supervises all banks and financial institutions, in addition to the stock market and the insurance sector, in Indonesia. H.E. Dr. Muliaman Hadad (Chairman, Board of Commissioners, the Financial Services Authority) received AAOIFI’s delegation which expressed its appreciation for the OJK as one of AAOIFI’s valued members and supporters. The two sides also discussed possible means of developing ties between them and how AAOIFI could contribute more to the Islamic finance industry in Indonesia.

Caption: From right to left, H.E. Dr. Muliaman Hadad (Chairman, OJK) and H.E. Dr. Hamed Hasan Merah (Secretary General, AAOIFI)

Moreover, AAOIFI took part at the annual conference of the Islamic Development Bank which was concurrently held in Jakarta, where AAOIFI’s Secretary General was a keynote speaker at the conference. In this regard, he stated: “Indonesia plays a crucial role, and holds an advanced position, within the Islamic finance industry due to a number of factors including being the largest Islamic country in terms of population (210 million), and being among the three Islamic countries within the G20 block. It has the largest economy in the South-Asia region, and has a rapidly growing Islamic finance and banking industry; as the average rate of growth in the assets of Islamic banks there stands at nearly 35% per annum- over the period 2010- 2013- and expectations indicate a continuation of this trend with a 33% growth rate per annum up to 2018, totaling nearly USD 100 billion.

Indonesia is also endowed with a set of regulatory and technical underpinnings conducive to its growing Islamic finance industry including a Central Shari’ah Board for this industry, and a base of experts and professionals who have been contributing substantially to AAOIFI’s mission and standards development process. That is why we hold this country with special regard and look forward to further nurturing our professional ties with its regulatory and supervisory authorities and IFIs, in addition to Shari’ah scholars, practitioners, the academia, and other stakeholders in Indonesia”.