9th AICIF 2021 Welcoming Remarks of Dean Faculty of Islamic Economics and Business

It is an honour for me to welcome all the keynote speakers, invited panellists, and participants of the 9th ASEAN Universities International Conference on Islamic Finance (AICIF) 2021. The theme of our 9th AICIF 2021 is “Strengthening Islamic Economy and Halal Industry towards Economic Recovery and Sustainable Development in the Amidst Pandemic Era”.

As the host of this conference, FEBI UIN Sunan Kalijaga is very honoured to provide a stage for Islamic economists from various countries of the world. This event is expected to increase our understanding of Islamic financial literacy and improve the diversity of research development on this subject. So far, FEBI UIN Sunan Kalijaga has contributed to produce competitive graduates who are superior and prominent in the field of Islamic economic and business development. It is believed that this sector in the future will have a significant contribution in bringing Indonesia into a developed country, respected by the world, and a home for the growth of people's welfare.

During the recovery process for all economic sectors due to the Covid-19 pandemic, we have received very encouraging news. Indonesia is placed in the first rank in the Islamic Finance Country Index (IFCI) 2021. Indonesia's first place was followed by Saudi Arabia, Malaysia, Iran, Pakistan, Brunei Darussalam, Bangladesh, UAE, and Kuwait. This information is reported by Cambridge IFA in its report entitled Global Islamic Finance Report (GIFR) 2021. The report was also exclusively launched coincided with the 8th Indonesia Sharia Economics Festival (ISEF) on 29 October 2021.

IFCI's assessment covers almost all sectors of Islamic finance, including banking sector, capital markets, insurance, microfinance, and financial technology. Two things that have a major contribution to Indonesia's achievements are the Islamic capital market sector and the Islamic social finance sector. From the Islamic capital market sector, Indonesia is considered successful in issuance of the Sukuk and its instrument. The Indonesian Sharia Financial Development Report 2020 from the OJK stated that the outstanding value of state sukuk reached Rp971.50 trillion, an increase of 31.17% compared to the previous year.

We should also be grateful for the achievements of Indonesia as a country with the first ranking of the world's Islamic finance index, even though it is still in the recovery period. The impact of the Covid-19 pandemic is recognized to be felt in all financial sectors. However, the Islamic finance sector is proven to have good resilience. Sharia financial sector assets were able to grow 22.71% amid the pandemic, which was recorded to have grown from Rp1.468 trillion to Rp1.801 trillion. The biggest contributor to the growth of Indonesia's Islamic financial assets is the Islamic capital market, followed by Islamic banking and the non-bank financial industry such as insurance, finance companies, pension funds, microfinance, and special financial institutions.

This achievement confirms the possibility that Indonesia can become the country with the largest Islamic economic power in the world. Therefore, we must take this opportunity seriously, because Indonesia is also a country with the largest Muslim population in the world. Therefore, it is very relevant that the topic of today's AICIF event is Strengthening Islamic Economy and Halal Industry toward Economic Recovery and Sustainable Development in the Amidst Pandemic Era.

It is also very appropriate if FEBI UIN Sunan Kalijaga Yogyakarta as a university that organizes sharia economic programs at the undergraduate or master level, carries out this AICIF event together with six other universities in the ASEAN. This effort is is expected to have a contribution in increasing Islamic financial literacy for the younger generation, who may become the nation's leaders in the next ten or twenty years in their respective communities and places.

Even though we are currently still in the recovery period due to the covid-19 pandemic, it does not dampen our enthusiasm to ensure that the 9th AICIF will runs extraordinary. Both the offline agenda that we carried out at the Royal Ambarukmo Hotel or the participants who took part in our virtual meeting platform. Therefore, I personally congratulate you on participating in this conference, hopefully it can provide as much benefit as possible to the participants and the community in general.


Dr. Afdawaize, S.Ag., M.Ag.
Dean, Faculty of Islamic Economics and Business
UIN Sunan Kalijaga Yogyakarta

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