VOICED: Indonesia plays catch-up in Islamic finance

The video discusses the rise of Islamic banking in Indonesia, highlighting the limited number of banks offering Sharia-compliant services despite a large Muslim population. It introduces Sukuk bonds, a form of Islamic finance that prohibits interest and speculation, which have been highly successful in Indonesia. The government sees Sukuk as a promising tool to address budget deficits and economic challenges. The video also explores the potential for global adoption of Islamic bonds, noting their appeal as a stable financial instrument in uncertain markets.

What is a key principle of Islamic banking that differentiates it from conventional banking?

• Unlimited debt accumulation

• Speculative investments

• Profit-sharing instead of interest

• Charging high interest rates

What are Sukuk, as introduced by the Indonesian government?

• A new banking regulation

• Islamic bonds backed by real assets

• A form of cryptocurrency

• A type of conventional bond

Why was the Sukuk offering considered a success in Indonesia?

• It was undersubscribed

• It was three times oversubscribed

• It failed to attract investors

• It was only popular among non-Muslims

How can Islamic bonds benefit countries outside of Islamic regions?

• By encouraging debt accumulation

• By promoting high-interest loans

• By providing a safer financial instrument

• By increasing speculative investments

What potential role does Sharia banking have in the global economy?

• It discourages international trade

• It can be a silver lining during economic downturns

• It increases financial instability

• It is only beneficial for Islamic countries