The growth and development of Islamic banking in Indonesia are increasingly showing a positive trend from year to year until it is now one of the ten largest Islamic finance industries in the world. Along with these developments, two things must always be maintained, namely the aspect of good bank governance and Good Corporate Governance (GCG). While the second is product innovation, the facts show that Islamic banking product innovation in Indonesia is still lacking and far behind other countries that have become pioneers of Islamic banking, such as Malaysia, Bahrain, and the United Arab Emirates. It is hoped that product innovation substantially impacts the development of the Islamic Bank Market; the more innovative Islamic banks make products, the faster the market will develop.

Seeing this phenomenon, the Faculty of Economics, University of Islam Malang, held an International Seminar with the theme "Actualizing Good Governance in Islamic Banks" with Dr. Abdelelah Mohammed Ahmed Nimr, a Sharia Banking Expert from Sudan (Khartoum University). This event was held on Thursday, October 19, 2017, starting at 08.00 – 11.00 WIB at Abdurahman Wahid Hall, Postgraduate Building lt. 7, University of Islam Malang.

The event was opened by the Chancellor of the University of Islam Malang, Prof. Dr. Maskuri, M.Si. In his brief speech, he expressed his pride and enthusiasm for welcoming the inaugural activity of the new study program of the Faculty of Economics, University of Islam Malang, namely Islamic Banking. He also appreciated all the teamwork that has been passionate and tireless in carrying out innovations for the development of faculties and study programs. Separately, the Dean of the Faculty of Economics at the University of Islam Malang, Nur Diana, SE., M.Si., stated that this activity was the first international seminar conducted by the Sharia Banking Study Program, Faculty of Economics, the University of Islam Malang as an effort to support and provide the latest insights regarding the realization of good governance. Proper and highly competitive Islamic banking management. It has become a culture for the Faculty of Economics, the University of Islam Malang, to invite experts from national and international levels, academics, and practitioners, to provide broader insights regarding the latest economic problems.

In his presentation, Dr. Abdelelah said that the Islamic Finance Industry has unique characteristics that are bound by the values of aqidah (faith) and morals as well as a commitment to comply with sharia provisions, so the Sharia Supervisory Board (DPS) must guarantee this to achieve the five basic principles of GCG: transparency, accountability, responsibility, professionalism, and fairness. Regarding product innovation, Dr. Abdelelah explained that DPS must be proactive, not just waiting for a draft of a product proposal which is then issued as a fatwa. DPS must take the initiative to explore classical fiqh literature to find a contract model that is in line with the development of financial products, not limited to cloning conventional products labeled as “Sharia.” In addition to product innovation, there needs to be a strengthening of human banking resources from the Sharia aspect that ensures Sharia compliance of every product issued and encourages the development of public literacy in Sharia finance.

Although using Arabic, this event was attended by no less than 600 participants. The seminar ended with a question-and-answer session and was warmly welcomed by all seminar participants.

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News Release