INDONESIAN FSA TO SET UP MICROFINANCE DEVELOPMENT CENTER
Jakarta, 21 Shawwal 1436/6 August 2015 (MINA) – Financial Services Authority (FSA), supported by the Islamic Development Bank (IDB), will establish a center for the development of microfinance institutions and financial inclusion.
Chairman of the FSA Board Commissioner, Muliaman D Hadad said, the support of the IDB in the program is part of the Memorandum of Understanding (MoU) between the FSA and the IDB signed at IDB headquarters in Jeddah on Wednesday (5/8).
Miliaman and IDB president, Ahmad Mohamed Ali signed the MoU which among others also includes the joint development of financial inclusion program, Antara News quoted by Mi’raj Islamic News Agency (MINA) as reporting.
Muliaman said, the presence of the planned financial institution will reinforce the FSA’s commitment to empowering micro-finance institutions and economy of small communities, which actually play a major role in the economy of Indonesia today.
“As a laboratory of micro-economy, Indonesia should be a storefront for the development of micro economy in the world,” he said.
According to him, the rapid development of microfinance institutions should be supported by the presence of a development center (center of excellence) serving not only as a study center and the provision of technical support, but also as a forum for coordination between the various agencies involved in the empowerment of these institutions.
The development center, Muliaman added, open to universities, and government agencies in other countries or foreign financial institutions which have a concern or interest in low-cost micro finance.
The agency’s vision is to become a center for the development of microfinance and financial inclusion of international standard to help alleviate global poverty,” Muliaman said.
In addition to the IDB, the establishment of the center is also supported by other multilateral institutions such as the World Bank, the Asian Development Bank, the International Finance Corporation (IFC), and the International Fund for Agricultural Development (IFAD).
The IDB will provide technical support to promote the development of Islamic financial institutions ranging from Islamic banking, Islamic capital markets and non-bank financial industry sharia.
The IDB will also support the FSA program to boost improve financial literacy, especially for small and medium-income communities.
Especially for the development of microfinance and financial inclusion, IDB agreed to increase its role in providing soft loans to Islamic microfinance institutions and micro-economic development in Indonesia.(T/P008/RO6)
Mi’raj Islamic News Agency (MINA)
