Roadmap of Indonesian Islamic Banking 2015 - 2019 · 2015-12-31 · Roadmap of Indonesian Islamic...

14
Roadmap of Indonesian Islamic Banking 2015 - 2019 OJK International Conference on Islamic Finance Jakarta, 12 November 2015 Nelson Tampubolon Chief Executive in Charge of Banking Supervision - OJK

Transcript of Roadmap of Indonesian Islamic Banking 2015 - 2019 · 2015-12-31 · Roadmap of Indonesian Islamic...

Page 1: Roadmap of Indonesian Islamic Banking 2015 - 2019 · 2015-12-31 · Roadmap of Indonesian Islamic Banking 2015-2019 Roadmap of Indonesian Islamic Banking 2015 - 2019 Vision 7 Policy

Roadmap of

Indonesian Islamic Banking

2015 - 2019

OJK International Conference

on Islamic Finance

Jakarta, 12 November 2015

Nelson TampubolonChief Executive in Charge of Banking Supervision - OJK

Page 2: Roadmap of Indonesian Islamic Banking 2015 - 2019 · 2015-12-31 · Roadmap of Indonesian Islamic Banking 2015-2019 Roadmap of Indonesian Islamic Banking 2015 - 2019 Vision 7 Policy

2

Existance of Islamic Banking

give more varied choices of banking instruments and services

the creation of financial market deepening and financial system stability

contribute in supporting financial inclusion

Page 3: Roadmap of Indonesian Islamic Banking 2015 - 2019 · 2015-12-31 · Roadmap of Indonesian Islamic Banking 2015-2019 Roadmap of Indonesian Islamic Banking 2015 - 2019 Vision 7 Policy

Indonesia’s position in the Global Islamic Finance

3

Internationally, Indonesia is seen to have great potential and

strength in the global Islamic finance development - 10 largest

countries in the field of Islamic financial

2014 Top 10 Islamic Finance

Asset ($ Million)

1. Malaysia

2. Saudi Arabia

3. Iran

4. UAE

5. Kuwait

6. Qatar

7. Bahrain

8. Turkey

9. Indonesia

10. Bangladesh

423,285

338,106

323,300

140,289

92,403

81,027

64,644

51,161

35,629

19,938

Page 4: Roadmap of Indonesian Islamic Banking 2015 - 2019 · 2015-12-31 · Roadmap of Indonesian Islamic Banking 2015-2019 Roadmap of Indonesian Islamic Banking 2015 - 2019 Vision 7 Policy

Indonesia Islamic Banking - Asset Growth

4

15,331 20,916 26,722 36,537

49,555

66,089

97,519

145,466

195,017

242,276

272,343

0

50,000

100,000

150,000

200,000

250,000

300,000

1 2 3 4 5 6 7 8 9 10 112004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Year

IDR billion

average asset growth of 33,2%

Page 5: Roadmap of Indonesian Islamic Banking 2015 - 2019 · 2015-12-31 · Roadmap of Indonesian Islamic Banking 2015-2019 Roadmap of Indonesian Islamic Banking 2015 - 2019 Vision 7 Policy

5

Islamic Banking

Asset IDR 274,306

billion

Total Indonesia Banking

Asset IDR

5,925,677 billion

Market Share of Indonesia Islamic Banking

August 2015

Page 6: Roadmap of Indonesian Islamic Banking 2015 - 2019 · 2015-12-31 · Roadmap of Indonesian Islamic Banking 2015-2019 Roadmap of Indonesian Islamic Banking 2015 - 2019 Vision 7 Policy

6

Challenges in Islamic Banking DevelopmentS

TR

AT

EG

IC IS

SU

ES

Misalignment in the visions and lack of coordination between the government and the authorities in Islamic banking development

Capital is still inadequate, industry scale and individual banks are still small, as well as low efficiency

High cost of fund that causes limited financing segment

Unvaried products and services that do not yet meet public expectation

Quantity and quality of Human Resources (HR) is not yet adequate and Information Technology (IT) is not yet capable of supporting product

and service development

Public understanding and awareness that are still low

Regulation and supervision which are not yet optimal

Page 7: Roadmap of Indonesian Islamic Banking 2015 - 2019 · 2015-12-31 · Roadmap of Indonesian Islamic Banking 2015-2019 Roadmap of Indonesian Islamic Banking 2015 - 2019 Vision 7 Policy

Strategic issue

Strategic issue

Strategic issue

Strategic issue

Strategic issue

Strategic issue

Strategic issue

7

Roadmap of Indonesian Islamic Banking 2015-2019

Roadmap of Indonesian Islamic Banking 2015 - 2019

Vision 7 Policy Directions

41 Priority Programs

To Establish Islamic banking

that provides significant

contributions to sustainable

economic growth, equitable

development, financial system

stability, and has high

competitiveness

Page 8: Roadmap of Indonesian Islamic Banking 2015 - 2019 · 2015-12-31 · Roadmap of Indonesian Islamic Banking 2015-2019 Roadmap of Indonesian Islamic Banking 2015 - 2019 Vision 7 Policy

8

7 Policy Directions

1. Strengthening synergies between the authorities and

government and other stakeholders in context of

policy development;

2. Strengthen capital and business scale as well as

enhance efficiency;

3. Improve funding structure to support expansion in

financing segment;

4. Improve service quality and product diversity

5. Improvement of the quantity and quality of HR & IT as

well as other infrastructure

6. Enhancement of public literacy and preference

7. Strengthening and harmonizing regulations and

supervision

Page 9: Roadmap of Indonesian Islamic Banking 2015 - 2019 · 2015-12-31 · Roadmap of Indonesian Islamic Banking 2015-2019 Roadmap of Indonesian Islamic Banking 2015 - 2019 Vision 7 Policy

9

Priority Programs

1. Priority programs to strengthen synergies for policy development between banking authority with government and other stakeholders, including:

The establishment of KNKS: representatives from government, the FSA and central bank in Indonesia;

Management of government funds; Placement of SUKUK funds in Islamic banking

Forums of cooperation and coordination with the judiciary, universities and deposit insurance agency as well as the establishment of a research and development center of

Islamic banking

Initiate and develop Islamic investment banks, particularly for the purpose of financing government projects

Page 10: Roadmap of Indonesian Islamic Banking 2015 - 2019 · 2015-12-31 · Roadmap of Indonesian Islamic Banking 2015-2019 Roadmap of Indonesian Islamic Banking 2015 - 2019 Vision 7 Policy

10

Priority Programs

2. Priority programs to enhance competitiveness of Islamic Banking, such as:

Strengthening capital and business scale of Islamic banking through additional paid-up capital; Establishment of state-

owned/district government-owned Islamic Bank; Leveraging; Spin off sharia windows

Improve funding structure and expand financing segment through incentive framework for expansion of productive

financing in infrastructure and corporate sectors

Optimization of haj fund management through Islamic banking as well as waqaf, zakat, infaq and Shadaqah

Page 11: Roadmap of Indonesian Islamic Banking 2015 - 2019 · 2015-12-31 · Roadmap of Indonesian Islamic Banking 2015-2019 Roadmap of Indonesian Islamic Banking 2015 - 2019 Vision 7 Policy

11

Priority Programs

2. Priority programs to enhance competitiveness….., continued:

Involvement of Islamic banks in the management of government’s fund and government-owned enterprises’s

funds

Promote placements of funds, resulting from sukukemissions, at Islamic banks

Improve service quality and product diversityImprove service quality and product

diversity

Improvement of the quantity and quality of HR & IT as well as other infrastructure

Page 12: Roadmap of Indonesian Islamic Banking 2015 - 2019 · 2015-12-31 · Roadmap of Indonesian Islamic Banking 2015-2019 Roadmap of Indonesian Islamic Banking 2015 - 2019 Vision 7 Policy

12

Priority Programs

3. Priority programs to enhance public literacy and preference of Islamic banking & its products, such as:

Islamic Banking (iB) campaign program on Islamic banking products and strengthening of Islamic banking

positioning, differentiation, branding

Enhance Islamic financial literacy through education and socialization

Page 13: Roadmap of Indonesian Islamic Banking 2015 - 2019 · 2015-12-31 · Roadmap of Indonesian Islamic Banking 2015-2019 Roadmap of Indonesian Islamic Banking 2015 - 2019 Vision 7 Policy

13

Priority Programs

4. Priority programs to improve the quality of regulation and supervision of Islamic banking, such as:

improving the institutional regulations and policies related to Financing to Value (FTV)

guidelines of the resilience of Islamic banks stress test and taxonomic system of regulation related to Islamic

banking

Page 14: Roadmap of Indonesian Islamic Banking 2015 - 2019 · 2015-12-31 · Roadmap of Indonesian Islamic Banking 2015-2019 Roadmap of Indonesian Islamic Banking 2015 - 2019 Vision 7 Policy

Thank you

Link Roadmap: bit.do/rpsi2015