Islamic system creates financial inclusion, says minister

Jakarta, NU Online
Minister of Finance Bambang Brodjonegoro stated that Islamic financial system emphasizing justice and prohibiting various forms of speculation would lead to financial inclusion.<>

"The principle of Islamic finance is the right principle to bring 'financial inclusion' in the community, which in turn will strengthen the stability of the national economy," he said at the opening of the third Congress of IAEI taking up issues on "Building Strategic Alliance in Islamic Economics, Finance and Business Policies" in Dhanapala Building, the Ministry of Finance, Jakarta, Thursday, (30/4).

According to Bambang, who is also Chairman of the Indonesian Association of Islamic Economics (IAEI), the basic principles of the financial system was to promote the establishment of the balance and the fulfillment of a sense of justice.

"The Islamic financial system prioritizes the principles of justice and forbids all forms of injustice," he said.

He further said that the application of Islamic principles in the financial industry had strengthend its durability in facing the financial crisis. For example, Bank Muamalat as the first sharia bank in Indonesia could manage to escape from the economic crisis in 2008.

It has made many people glance at the Islamic financial system. They consider Islamic financial system having stability of the financial system.

Bambang said the principles of Islamic finance prioritized ethics in business and prohibited speculation about uncertainty.

"The principle of Islamic finance also give priority to share the risks rather than transfer the risk. The principle of Islamic finance prohibits 'money for money' transactions and requires the real assets underlying the transaction," he said.

Editing by Sudarto Murtaufiq