accelerating sharia finance development in … accelerating sharia finance development in indonesia...
TRANSCRIPT
1
Accelerating Sharia Finance Development
in Indonesia
HARYADI The 6th Meeting of the COMCEC Financial Cooperation Working Group
17-18 March, 2016 Ankara - Turkey
Ministry of Finance, Republic of Indonesia
Outline
2
Sharia Finance Opportunities in Indonesia
Regulation Support
Sharia Finance Assets
Islamic financial development: Key statistics
Challenges
Acceleration Strategies
Sharia Finance Opportunities in Indonesia
209.120.000
176.190.000
167.410.000
133.540.000
77.300.000
76.990.000
73.570.000
71.330.000
34.730.000
31.940.000
Indonesia
India
Pakistan
Bangladesh
Nigeria
Egypt
Iran
Turkey
Algeria
Morocco
World Moslem Population in 2012 • Indonesia is the biggest muslim population country
• Biggest GDP among OIC member countries
• Relatively Stabile political situation
• Market-driven sharia market development
• Government and financial regulators commitment in developing Islamic finance
0
100
200
300
400
500
600
700
800
900
1000
1990 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014
Bill
ion
s U
S$
Gross Domestic Product
Indonesia Iran, Islamic Rep. Malaysia
Oman Pakistan Qatar
Saudi Arabia Turkey United Arab EmiratesSource: World Bank
3
Regulation Support *
Development of Economic and
Shariah Finance Sectors
Act No. 8/1995: Capital Market
Act No. 41/2004: Waqaf
Act No. 19/2008: Sovereign Sukuk
Act No. 21/2008: Sharia Banking
Act No. 23/2011: Management of
Zakah
Act No. 34/2014: Management of
Hajj Funds
Act No. 40/2014: Insurance
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* In addition to implementing rules and regulations
Isla
mic
Ban
kin
g • Total Asset Rp296 trillion^
• 12 Islamic Bank
• 22 Islamic Banking Unit
• 163 Islamic Rural Bank
•Per December 2015
No
n Is
lam
ic B
anki
ng
Sect
ors
• Total Asset Rp64,8 trillion^
• 22 Islamic Non Banking
• 88 Unit of Non Islamic Banking Sectors
•Per December 2015
Cap
ital
Mar
ket • SBSN (govt.
sukuk) issued: Rp288 trillion^
• Corporate Sukuk issued: Rp14,48 trillion^
• NAV of Sharia mutual funds Rp10 trillion^
• 331 Islamic securities listing
•per September 2015
Sharia Finance Assets (1)
5
^ 1 USD= Rp 13,000
Type 2012 2013 2014 Dec 2015
MARKET SHARE Sep
2015
Per Industry
Sharia Banking 174,09 233,13 272,34 296 4,83%*
Sharia Insurance 13,1 15,38 22,36 23,89* 5,10%*
Sharia Financing 22,66 28,74 23,77 22,35* 5,54%*
NAV Sharia Mutual Funds
8,05 9,43 11,49 10,11 4,00%
Outstanding of Sovereign Sukuk
134,15 176,84 222,72 288,20 13%
Capitalization of Sharia Stocks
2.451,33 2.557,85 3.060,28 2449,10 55,98%
(trillion Rp^)
Source: Financial Services Authority, Ministry of Finance
*Per November 2015
Sharia Finance Assets (2)
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^ 1 USD= Rp 13,000
Key statistics: Sharia Banking
Source: Financial Services Authority
7
-
800
1.600
2.400
3.200
50
100
150
200
250
300
350
2010 2011 2012 2013 2014 2015
Islamic Bank and Islamic Banking Units
Laba (RHS) Financing Third Party Funds Asset
Billion(Rp) Trillion(Rp)
Profit (RHS)
0
1
2
3
4
5
6
0
20
40
60
80
100
120
2011 2012 2013 2014 Dec 2015
% %
Banking Performance
FDR LDR OER-S OER ROA-S(RHS) ROA(RHS)
0
4
8
12
16
20
24
2009 2010 2011 2012 2013 2014 Dec 2015
Bill
ion
Rp
Saving account and Financing account
Saving Financing
Key statistics: Sharia Insurance
No Indicators 2010 2011 2012 2013 2014 2015
1 Total Asset
Sharia Life Insurance 5.632 7.275 10.016 12.792 18.052 21.614
Sharia General Insurance 1.342 1.927 3.223 3.869
3.310 3.786
Sharia Reinsurance Unit 1.003 1.119
Total 6.974 9.202 13.239 16.661 22.364 26.519
2 Total Investment
Sharia Life Insurance 4.903 6.418 9.087 11.537 16.352 19.576
Sharia General Insurance 895 1.338 2.241 2.758
2.258 2.539
Sharia Reinsurance Unit 847 955
Total 5.798 7.756 11.328 14.295 19.457 23.070
No Companies 2010 2011 2012 2013 2014 2015
1 Sharia Life Insurance 3 3 3 3 3 3
2 Sharia Life Insurance Unit 17 17 17 17 17 19
3 Sharia General Insurance 2 2 2 2 2 3
4 Sharia General Insurance Unit 20 18 20 24 23 23
5 Sharia Reinsurance Unit 3 3 3 3 3 3
45 43 45 49 48 51
Source: Financial Services Authority 8 Billion Rupiahs*
* 1 USD= Rp 13,000
Key statistics: Sharia Capital Market
4 11 17
23 26
36
46 48 50 58
65 74
85
10,11
-
2,00
4,00
6,00
8,00
10,00
12,00
0
10
20
30
40
50
60
70
80
90
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sept
Trill
ion
s
Vo
lum
e
Sharia Mutual Funds Development
Jumlah Reksa Dana Syariah NAB Reksa Dana Syariah
-
1.000
2.000
3.000
4.000
5.000
6.000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Sept
Trill
ion
s
Capitalization of Stocks
Jakarta Islamic Index Indeks Saham Syariah Indonesia Indeks Harga Saham Gabungan Indeks LQ45
Source: Financial Services Authority
0,10 1,88 2,20 0,92 1,57
45,64
65,66
55,29 47,82 50,86
0,22%
2,78%
3,83%
1,89%
2,99%
0,00%
0,50%
1,00%
1,50%
2,00%
2,50%
3,00%
3,50%
4,00%
4,50%
0,00
15,00
30,00
45,00
60,00
2011 2012 2013 2014 2015*)
%
Trili
un
Rp
*)s.d. September 2015
Corporate Sukuk Issued and Its Market Share
Sukuk Koorporasi (dalam triliun rupiah) Obligasi Koorporasi (dalam triliun rupiah)
Market Share
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Key statistics: Sovereign Sukuk
Gov Bonds; Rp[VALUE]
T; [PERCENTA
GE]
Sovereign Sukuk;
Rp[VALUE] T;
[PERCENTAGE]
Government Bonds and Sovereign Sukuk per September 2015
[CATEGORY NAME];
Rp[VALUE]T; [PERCENTAGE]
[CATEGORY NAME];
Rp[VALUE]T; [PERCENTAGE] [CATEGORY
NAME]; Rp[VALUE]T;
[PERCENTAGE]
[CATEGORY NAME];
Rp[VALUE]T; [PERCENTAGE] [CATEGORY
NAME]; Rp[VALUE]T;
[PERCENTAGE]
[CATEGORY NAME];
Rp[VALUE]T; [PERCENTAGE]
Sovereign Sukuk in terms of Type per September 2015
IDR 64%
USD 36%
Sovereign Sukuk in terms of Currency per September 2015
[CATEGORY NAME];
Rp253,01 T; [PERCENTAG
E]
[CATEGORY NAME];
Rp[VALUE]T; [PERCENTAG
E]
Sovereign Sukuk In terms of Tradability
Source: Ministry of Finance
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Challenges (1)
Innovation of product
supported by sharia financial
insight and knowledge
Market research based conducive
regulation to support product
innovation
Competent Human
Resources
Quality service and sharia
infrastructure enhancement
Services to productive SME
Increase community
understanding of sharia financial products
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Challenges (2)
Innovation of product
supported by sharia financial
insight and knowledge
Market research based conducive
regulation to support product
innovation
Competent Human
Resources
Quality service and sharia
infrastructure enhancement
Services to productive SME
Increase community
understanding of sharia financial products
12
Development Strategies: Strategic level
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MASTERPLAN OF ISLAMIC FINANCE ARCHITECTURE (2014) A result of study by National Development Planning Agency
and IDB To synergize Islamic finance development strategies prepared
by stakeholders, such as Bank of Indonesia, FSA, and MoF. Declaration of President Joko Widodo to accelerate the
development of Islamic finance in Indonesia (January 2016) Establishment of National Committee on Islamic Finance
o Chair: President o Vice chair: Vice President o Committee members: Governor of BI, Commissioner of FSA,
Commissioner of IDIC, Minister of Finance, Coordinating Minister of Economic Affairs, Minister of Cooperatives and SMEs, Minister of Religious Affairs, Minister of SOEs, Chairman of Indonesian Ulama Council.
Development Strategies: Operational level
Creating equal level of playing field between sharia and conventional industry
Issuing regulations to support sharia financial development
Issuing sukuk instruments to add portfolio options of investment
Harmonizing fiscal policy to sharia financial services to create the environment for the economy while keeping financial system and fiscal stability
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- Review/amendment on several tax rules and regulation
- Codification of regulations in Islamic financial products - More opportunity for Sharia banks as salary payment banks for govt.
employees, soldiers, and police forces.
Other information
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Host of the Islamic Development Bank, 41st Annual Meeting, from 15-19May 2016. • Governors meetings • Exhibitions • Seminars • Social programs
1ST ANNUAL ISLAMIC FINANCE CONFERENCE: Islamic Infrastructure Financing and Financial Inclusion Strategy • Jakarta, 17 May 2016 • IDB, IRTI, Ministry of Finance, Bank of Indonesia, Financial
Services Authority, Indonesian Deposit Insurance Corporation, and Indonesian Association of Islamic Economics Experts.
• Local and international speakers • regulators, policy makers, industry, academics.
