Syariah Banks to Receive Incentives

Bank Indonesia (BI) is attempting to provide tax incentives to the Islamic banking industry. “BI and the Finance Ministry are mapping the tax regulations, discussing which areas to be provided with the incentives,” said Syariah Banking Director Mulya E. Siregar.

The meeting discussed the technical phase with the Finance Ministry. This is another way for the central bank to accelerate the growth of syariah bank products which have been judged to be difficult to develop due to the lack of innovation. Yet overseas, many syariah products have emerged, giving the investors a wide variety to choose from.

The condition has become worse with the slowness of the National Syariah Board in issuing a fatwa about the products immediately. Before they are marketed, syariah products must receive a fatwa from the board. At least 54 syariah products failed to get a favorable fatwa have not received the fatwa.

The development of syariah banks has also been slowed down by the lack of human resources. By 2015, Indonesia will be part of the ASEAN economic community.