Jakarta: Bank Indonesia (BI) Governor Perry Warjiyo attended the 34th Meeting of the Council of the Islamic Financial Services Board (IFSB) in Kuala Lumpur, Malaysia this week.
Acting as Chairman of the Executive Committee, the BI leader initiated the Transformation Strategy & International Standards for Global Islamic Finance in conjunction with members of ISFB in order to strengthen the resilience of Islamic finance as well as create infrastructure in the form of regulatory guidelines and standards equivalent to the conventional financial industry.
"BI is the current chair of the Executive Committee of the IFSB, which is mandated with providing recommendations to the Council concerning formulation of the strategic framework and aspects of IFSB governance," the central bank said in a press statement released on Tuesday.
According to reports, the meeting was attended by council members of the IFSB, consisting of the central bank governors from Malaysia, United Arab Emirates, Kuwait, Pakistan, Nigeria and Oman, as well as leaders from other financial supervisory authorities, including Indonesia, Brunei Darussalam, Egypt, Turkey and Saudi Arabia.
"BI’s active contribution at the international forum represents part of Bank Indonesia’s policy mix and tangible backing for the manifestation of Indonesia as a global centre of the Islamic Economy and Finance," the central bank noted.
The Executive Committee of the IFSB was established pursuant to the Decree of the 33rd Council Meeting in Jeddah held in December 2018, which aims to hone the strategies while strengthening the organisation and aspects of governance as an international standard-setting forum that plays a critical role in global Islamic financial industry development.
The IFSB was established in November 2002 as an international standard-setting body that aims to create and maintain international Islamic financial industry resilience and stability from a microprudential and macroprudential perspective.
"Thus far, the IFSB has issued 22 international standards for the Islamic financial industry, encompassing the Islamic banking industry, capital market and insurance industry (takaful)," the central bank remarked.
Under the auspices of the IFSB, BI is actively compiling other guidelines, namely Islamic financial inclusion, the integration of social and commercial finance in particular, and its role in terms of supporting inclusive growth.
Moving forward, BI will also continue to support research efforts and formulate standards for the Islamic financial industry in order to strengthen financial system stability.
"BI is a founding father of the institution and, as such, is avowedly committed to supporting global and domestic Islamic financial development," the central bank stated.