RUSSIA - Indonesia shares experience in Islamic banking

The training of economists and bankers from Russia on various aspects of Islamic banking began on June 13, 2011, in Jakarta, in the Islamic bank Bank Muamalat Indonesia (BMI).

On the first day of the training, BMI Head of International Relations department, Mr. Farouk Alvini, welcomed the Russian delegation and informed them of the recent performance of the bank. Particularly, he noted that BMI is the second largest Islamic bank in Indonesia with the asset growth of 30% per year. (source)

Currently, the bank has 350 offices throughout the country, and one regional office in Malaysia. Among the founders of the bank is the Islamic Development Bank, while the overall number of the bank’s shareholders is more than 400 thousand.

Last year, the BMI delegation visited Moscow and Kazan with a series of workshops and lectures. In April this year, the bank hosted a delegation of the Russia Muftis Council composed of deputy heads of the regional Spiritual Boards of Muslims. Mr. Farooq Alvin mentioned that he is glad to witness high interest from Russian financial institutions towards Islamic banking.

In her opening speech, Head of Russian delegation Ms. Madina Kalimullina noted that the members of the delegation represent mostly the financial institutions that have already made certain steps in the implementation of Islamic financing in Russia either in the form of banking cards issuance, Murabaha mechanisms financing, or approaching structuring of sukuk. It should be noted as well that the members of the delegation are the representatives of different Russian regions - Moscow, Tatarstan, Bashkortostan, Dagestan.

The training also includes meetings in the departments of risk management, Shariah control, operations, etc., as well as meetings with the representatives of the Central Bank and the National Shariah Council. In the first days of the training most of the time was devoted to Q&A. On the same day, June 13, the Russian delegation met as well with the director of Eastern Europe Department of the Ministry of Foreign Affairs of Indonesia, Mr. Alit Santika.

Mr. Alit Santika expressed his hope that the presence and training of members of the delegation will foster the development of Islamic finance in Russia and strengthen trade and economic relations between Russia and Indonesia. According to him, the trade turnover between the two countries is growing every year and has amounted to 1,6 bln dollars in year 2010.

Director of the Economic Department of Russia Muftis Council Ms. Madina Kalimullina, while introducing the members of the delegation, noted that they represent different regions of Russia with a significant Muslim population and rich natural resources and opportunities which may become a cornerstone for further fruitful cooperation.

The visit of the Russian delegation to Jakarta aimed to study the experience of Indonesia in Islamic finance comes with the support of the Embassy of Indonesia in Moscow and the Ministry of Religious Affairs of Indonesia. 

 

Source :  http://www.muslimeco.ru/eng/onews/136/ - June 15, 2011