By Timur Abimanyu, SH.

MH

The Washington Post

Developmen Bank Contemporary to wards

the Central Bank Syariah

The development of Islamic banking in Indonesia in the last decade is very rapid. This is
evident from the growth and development of Islamic banking industry in the homeland, and
the increasing levels of public trust. People really missed the emergence of various
economic institutions that can bring economic justice to narrow the social gap.
The economic crisis that occurred since mid-1997, which has continued until today, has
made us aware of the importance of finding and developing alternative economic systems,
which can prevent the occurrence of concentration of wealth in the hands of a few groups of
people. Of course, current conditions require the existence of strong support from various
parties for an economic system based on Islamic sharia can continue to grow and flourish in
Indonesia.

The development of Islamic banking is a phenomenon that is very interesting and unique,
because this phenomenon occurs despite the fact that national economic conditions are in an
alarming state. Although judging from the Islamic banking business volume when compared
with the total volume of national banks, then the value is still relatively small, amounting to
Rp 2.5 trillion.

The total volume of national banks as a whole reached the figure of USD 1087 billion. If we
persentasekan, the new Islamic banking business volume reached 0.23 percent. However,
the future prospects of Islamic banking are very bright, especially considering the very large
market share. So, it's normal then many conventional banks opening Islamic branches,
directly or through conversion of conventional branches became branches of sharia. While at
the district level, we also have tens of SRB that has been operating in all parts of Indonesia.
Islamic Banking. In fact if you want to be honest, there are still many problems faced by
Islamic banking. On this occasion, a writer tries to present the results of research conducted
by Abdul-Gader and Al-Ghahani (1990) who did a comparative study of the role of
conventional commercial banks and Islamic banks in economic development. There are 4
key points drawn from the results of that research.

First, Islamic banks tend to maintain a higher ratio between cash and deposits than
conventional banks. This suggests to us that Islamic banks were more conservative than
conventional banks, or in other words, they lack the opportunity to lend the funds.

Second, the percentage of own capital (equity) to total assets is higher in Islamic banks than
conventional banks. Similarly, the ratio between own capital and loans between loans with
deposits, Islamic banks is higher when compared with conventional commercial bank. This
suggests that Islamic banks are bound to invest in lending, which means that these banks
might face difficulties to attract deposits.

Third, Islamic banks show a higher profit ratios than conventional banks engaged in the
same country. This is evidence of a higher cost of capital net worth or income from assets
and the ratio of total operating income by total assets.
Fourth, the Islamic bank is more efficient than conventional commercial banks, as evidenced
by the ratio of non-interest expenses to gross revenue (gross revenue).

This analysis shows that despite the establishment of Islamic banks have been running
smoothly, but still there are many weaknesses and shortcomings that need for us to
accomplish together.
Some problems :
There are several problems that arise along with the development of Islamic banking
industry. The problems that can be categorized in a number of problems which include:
First, is the lack of deposits. Islamic banking operations can not accept deposits from people
who want to get the benefits without bearing any risk. Because according to sharia, is not
allowed to share the benefits without sharing the risk.
Type of depositors like this are generally more inclined to deposit their money in banks that
operate with a system of interest / usury or the capital market (stock market).
Second, the problems faced by Islamic banking is excessive liquidity (excessive liquidity).
Of course, Islamic banks would be more likely to maintain a high ratio of cash savings when
compared with conventional banking. This was done to anticipate savings account
withdrawals by customers at any time without prior notice.
Then, not all potential customers of Islamic banks agree to lend money based on the
principles of Musharaka or partnership. In general, clients prefer to borrow funds on the
basis mudarabah, or even borrow from conventional banks with interest the system. Instead,
Islamic banks would prefer - for reasons of risk - investing on the basis of Musharaka than
mudarabah, because in mudarabah, if a business suffered a loss then the bank will bear the
burden of greater losses than his partner. Conservative attitude of investors and banks would
lead to excessive liquidity. Islamic banks also tend to hold more reserves (either in cash
themselves or the central bank) as a protection against loss and maintaining customer
satisfaction potential.

Third, is the problem of cost and profitability. Islamic Bank to work with very strict rules
and choose a lawful and appropriate investment islamic.
The implication is that Islamic banks should be supervised and sometimes directly manage
the operations of a project it finances. This is done to reduce the managerial expenditure. As
a result, Islamic banks must bear the additional cost that was never there in the books of
banks berasas interest. Islamic banks must also be able to minimize potential losses from
investments mudarabahnya and securing a higher level of profitability compared with usury
banks. This led to the Islamic banks are driven to seek projects that provide immediate
benefits. Long gestation projects (projects with a long waiting period) and infrastructure
projects are projects that are less attractive Islamic banking, in which Islamic banks have to
pay huge profits each year to deposit. The fourth problem is the problem faced further
funding loans for consumption.

Islamic banks are sometimes difficult to provide loans aimed at consumption. This is caused
by the limited funds that can be borrowed without a profit. Then the Islamic banks are
currently still difficult to collect zakat funds, donated as well as charity on a large scale,
whereas zakat fund is incredible potential, and can be used as a source of funding loans for
consumptive purposes.

Fifth, there is still lack of human resources in a comprehensive understanding of all matters
relating to Islamic banking industry. So in practice, it often happens deviations transaction
activity that does not comply with sharia. Therefore, the Sharia Supervisory Board should
play an active role in overseeing all activities of Islamic banks do business.

Later, efforts need to be improved continuously socialization of the banking system in

accordance with sharia. And problems faced sixth among Islamic banking institutions are
not yet maximal legislation that became law for the overall umbrella of Islamic banking
activities.
Therefore, we need to fully support efforts to make Islamic Banking Bill which is planned to
be completed by the end of 2003. In fact, it's time we develop the Central Bank of Islamic
discourse as an umbrella along for all banks operating under Islamic system. After all
Islamic banking institutions require a separate central bank, which is separated from the
existing central bank. Because it is impossible in an institution there are two systems that
have differences in a very basic, the result will always be problems that can hamper the
development of one of them. In this case, it could be that hampered the development of
Islamic banking. by Irfan Syauqi Beik Saturday, 19 February 2011.

=======================
Illustration By Timur Abimanyu, SH.MH.
problems that emerged in the Islamic banking industry are:
Very lack of deposits, which thus have difficulty in operating the sharia as the sharing of
benefits there must also share the risks that are generally more inclined to deposit their
money in banks that operate with a system of interest / usury or the capital market (stock
market). And the excessive liquidity problem (excessive liquidity). Of course, Islamic banks
would be more likely to maintain a high ratio of cash savings, this savings account in
anticipation of withdrawals made by customers prior notification. In principle, not all
potential customers of Islamic banks agree to lend money based on the principles of
Musharaka or partnership, yangpPada customers generally prefer to borrow funds on the
basis mudarabah, or with a system of interest. On the basis of tersebutlah, Islamic banks will
be more pleased with the risk of investing on the basis of reason rather than mudarabah
musharaka, because in mudarabah, if a business suffered a loss then the bank will bear the
burden of greater losses and Bank Islam tend to hold more reserves (either on its own cash
as well as the central bank). And the problems of cost and profitability. Islamic Bank to
work with very strict rules and choose a lawful and appropriate investment and the
implication is that sharia Islamic banks should be supervised and sometimes directly manage
the operations of a project it finances and consequently Ibank Islam must bear the additional
cost that was never there in the books of the bank- berasas bank interest.

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