Today in the conference-hall of the Russian Mufties Council open lecture of experts from Indonesia on Islamic economics and banking took place.

At the beginning of the meeting Deputy Head of International Department of RMC Haleet hazrat Sitdekov turned to the listeners with welcoming address saying that Islam encompasses all aspects of human life, including an economic component and today those gathered in the conference-hall have opportunity to listen about the experience of development of Islamic economics and Islamic finance of the largest country of Muslim world – Indonesia.

The event was moderated by the Deputy Head of the International Department, the Head of Office of Economic Development programs of RMC Madina Kalimulina. Lectures were held by experts from Islamic bank of Indonesia “Bank Muamalat Indonesia”, who went to Russia on the invitation of the Russian Mufties Council jointly with Embassy of the Republic of Indonesia in Moscow:

· Farouk Alvini, the Director of Treasury and Department of International banking, “Bank Muamalat Indonesia”;

· Mamoun Zubayr, an analyst of the Department of International banking, “Bank Muamalat Indonesia”;

· Ahmad Nuryadi, the representative of department of Shariah control, “Bank Muamalat Indonesia”;

· Feisal Mukhtar, the employee of the Shariah department control, “Bank muamallat Indonesia”.

 

The guests were accompanied by the councilor of the Embassy of Indonesia Mr. Aji Sureyya and officer of the Embassy, Mr. Enzhay Diana. Topic presentations of experts included following aspects: the concept of Islamic economics, “Why Islamic banking?”, history and modernity of Islamic finance in Indonesia, the activities of “Bank Muamalat Indonesia”, business-model pof Islamic banking, Shariah control of activities of Islamic financial institutions and others.

 

Among those who participated in the lecture were representatives of Bank sector, financiers, entrepreneurs, graduate students and students.

The first part of the lecture was devoted to the explanation of the concept of Islamic economics and substantiation of prohibition of usuries interest.

The second part of the event with the welcoming address to listeners the director of Treasury  and International Banking “BMI” Farouk Alvini turned to listenters with the welcoming address and also told about the activities of the Bank, its structure and features. Mamoun Zubayr told about the business-model of Islamic Banking.

The Islamic Bank “Bank Muamalat Indonesia” is the first Islamic Bank in the country, which was created in 1991. But before 1998 the activity of the Bank was restricted, also due to absence of a separate regulation of Islamic banks. But the crisis of 1998 changed the situation. The overcoming of the crisis by “Bank Muamalat” was successful especially when about one third of banks of the country were closed. At the same time the Government of the country started to work out the necessary legislation basis for activities of Islamic banks (Shariah banks as they are called in Indonesia).

During the lecture  listeners had opportunity to ask questions about covered aspects as well as about other interesting topics under the main theme of the event. Among the questions interesting for the audience  were the activities of Shariah Council under Islamic Bank of Indonesia, relationships between bank and regulatory authorities, the process of establishing Islamic banking in the country, risk-management and others.

Also the question related to the intention of BMI to develop business in Russian were raised, and Mr. Farouk Alvini said that first of all they can cooperate with Russia in studying the market and establishing Trade ties between their clients and Russian business.

The interesting moment is an approach of Bank Muamalat to recruitment of personnel. Besides the presence of professional qualifications the applicant is obliged to pass a test on ability to read Quran. In Indonesia most of the population especially in the age of 30  can read the Quran, if the applicant cant this means he is not interested in norms of Islam, including the aspects related to economics, contained in the Quran.

One of the question from the audience concerned the real steps made in Russia to develop Islamic banking after conference “Islamic banking: specifics and prospects”, which took place in March 2009 in Moscow. After this conference in Moscow and in Russia in the whole a number of different events and meeting devoted to this issue were held. Among such events are creation of working group on alternative (Islamic) financial institutions and products, in sessions of which the main operation of Islamic financing were studied and also the conference “Islamic financing: the prospects of development in Russia”, arranged jointly with The Moscow Times in December last year where working group represented the results of its researches.

The main obstacle to develop Islamic finance and Islamic banking so far is a low level of education in the field among potential consumers of Islamic financial institutes as well as first of all among representatives of business. As they are those who have opportunities to create financial institutes. Though there are also some events in the field of education of Islamic finance. First of all, this is a short-term training course on “Islamic finance”, the students of which during the studying prepare investment project, related to Islamic financing in Russia. The results of Investment project of the current (second) set, launched in February, is planned in late May. The best presentations will be presented in the frame of the Moscow International Exhibition Halal, which will take place in the June this year in Moscow. Besides all mentioned a great work is done in Kazan, in particular, was created an Islamic Investment company and Non-commercial Fund of Development of Islamic business and finance.

At the end of the event the Head of the delegation of BMI Mr. Farouk Alvini expressed hope that the presentations of representatives of the bank were useful for Russian audience and he hopes that during the next visit to Moscow they will see practical results of the discussion.

On materials of MuslimEco.ru