Documente Academic
Documente Profesional
Documente Cultură
Term of Reference
Introduction
Socio-economic problems remain the most challenging issue faced by Muslim world, including
Indonesia, during the last decades. A study by Askari and Rehman (2013) shows that during 1980
– 2011, almost all of 57 OIC member states shows a consistently underperformed trend in
comparison to the world average in broad–based economic and social development. Using the
United Nations Human Development Index (HDI) which comprises three: the Education Index
(EI); the Health Index or Life Expectancy Index (LEI); and the Income or Wealth Index (II), the
study finds that only the subset of the OIC, the six-GCC member countries – Bahrain, Kuwait,
Oman, Qatar, Saudi Arabia and the United Arab Emirates – has overperformed the world average
index, predominantly in terms of education, health and income levels. Nevertheless, the GCC’s
HDI index still remains below that of the OECD average during the same period.
That poor socio-economic performance of most Muslim-majority countries has raised a long-
standing debate on whether Islam as the “religion of practice” has relationships with socio-
economic growth, or whether there are deeper problems, outside the Islamic values, contributing
to lower education, poverty, poor health in the countries, although the Islamic economic principles
have been introduced hundreds years ago (Timmer & McClelland 2004). The principles, which is
also known as maqasid sharia principles attempt to answer one of two basic questions commonly
faced by most developing countries, “What is the quality of development that Islam stands for?”
According to Al-Gazhali, the objective of Sharia (maqasid sharia) is to promote the wellbeing of
all mankind which lies in safeguarding their faith (din), their human self (nafs), their intellect (‘aql),
their posterity (nasl) and their wealth (mal) (Kasri & Ahmed 2015). In other words, maqasid sharia
is not only about achieving economic growth per se but also achieveng the real wellbeing of
human kind (falah) as indicated by the rise in mental peace, and decline in crime and social
tensions. All these objectives can only be achieved through the removal of poverty and the
reduction of economic inequalities.
1
2
In Indonesia context, poverty and income gap also remain the main issues that President Joko
Widodo has called to cut down further amidst the excellent performance of its macroeconomic
indicators particularly among peers. According to the Credit Suisse’s Global Wealth Report 2016,
Indonesia was named fourth, behind Russia, India and Thailand, as the most unequal economies
in the world. Although Indonesia’s GINI ratio, a term that measures national inequality, has
decreased from 0.397 (3m2016) to 0.394 (9m2016), almost 50% of the country’s wealth was
controlled by only the 1% richiest according to the report. The number of Indonesians living below
the poverty line has also decreased during the same period, from 10.86% (3m2016) to 10.70%
(9m2016). However, the decrease in poverty was not at similar pace over Indonesian regions.
The number of Indonesians living below the poverty line in Maluku and Papua was still larger
compared to that in other parts of the country. Economic activities and infrastructure in the region
were relatively less developed but significantly exposed to world commodity price.
The duty of financing development is not only the responsibility of government. Private sector and
the society should also play a bigger role in mobilizing resources required to achieve the SDGs
and enhance shared prosperity. Islamic finance can contribute in financing development through
five tracks: financial stability; financial inclusion; reducing vulnerability, social and environmental
activities, and infrastructure financing (Ahmed and others 2015).
Objectives
The main objective of the conference is to promote discussion on the application of theory,
model and instruments of Islamic finance to overcome socio-economic problems in developing
countries including Indonesia. Furthermore, the conference aims to discuss a set of policies
combined with the principles of Islamic finance that can be together tackling poverty and income
inequality problems.
2
3
c. What is the role of Islamic financial sector to tackle poverty and inequality problems?
d. How can Islamic social finance contribute to nations’ development?
Proposed Speakers
Leading experts in the field of economic development, Islamic finance, from both international
and local, will share their knowledge and experiences in this conference. Specifically, proposed
speakers are high-profile persons from multilateral development agencies, academics,
government agencies, regulators, and financial institutions.
Expected Outcome/Impact
This conference will help stakeholders including policymakers, regulators, and financial
institutions get a better appreciation of the groundwork, issues, strategy, and challenges
associated with poverty and income inequality alleviation strategy, particularly from the
perspective of Islamic finance. In details, this conference will discuss, among others:
The recent development of SDGs targeting agenda in developing countries;
Challenges and opprtunities in developing strategies to eradicate poverty and inequality;
Fiscal policy and its role in nation’s economic development;
The concept of Islamic economics and finance on economic development;
The role of Islamic social funds in solving socio-economic problems.
3
4
Tentative agenda
Keynote:
09.00 – 10.00 Dr. Mansur Muhtar, Vice President Sector Operations & Acting Chief Economist, Islamic
(60 mnt) Development Bank Group
"The IDB Group Strategic Framework and Policies for Tackling Poverty and Income Inequality"
Opening:
H.E. Dr. Sri Mulyani Indrawati, Minister of Finance, Republic of Indonesia
“The Role Islamic Finance in Supporting SDGs”
10.00 – 10.10 Photo Session and souvenir presentation (MoF proceeds to Press Conference)
Panel 1: SDGs and Strategies in Combating Poverty and Income Inequality: Country Experience
This session will discuss challenges, opportunities, and strategies in achieving the Sustainable Development Goals,
particularly in combating poverty and income inequality in OIC member countries including Afghanistan dan Indonesia.
Panelists:
1. Dr. Mansur Muhtar (Vice President Sector Operations & Acting Chief Economist, Islamic
10.10 – 11.50 Development Bank Group)
(100 mnt) 2. H.E. Eklil Ahmad Hakimi (Minister of Finance, Republic Islam of Afganistan)
3. Dr. Subandi (Ministry of National Development Planning/Bappenas,
Republic of Indonesia)
Discussion Chair:
Dr. Yongmei Zhou, (Co-Director, World Development Report 2017, World Bank)
11.50 – 12.00 Photo Session and souvenir presentation to speakers and discussion chair
12.00 – 13.30 Lunch and Dzuhur prayer
Afternoon Lecture
This session will present the recent targets and achivements of the Sustainable Development Goals, and how Islamic
Finance has given contribution to achieve the SDG targets.
13.30 – 14.00 Dr. Francine Pickup (Deputy Country Director, UNDP Indonesia)
(30 mnt) “Sustainable Development Goals and the Contribution of Islamic Finance”
4
5
Keynote speech
09.00 – 09.20 H.E. Prof. Bambang P.S. Brodjonegoro, Minister of National Development Planning,
(20 mnt) Republic of Indonesia, Chairman of Indonesian Association of Islamic Economist.
“Maximizing the Role of Islamic Social Funds in Achieving National Development Targets”
09.20 – 09.30 Photo Session and souvenir presentation (Minister of National Development Planning
proceeds to Press Conference)
Morning Lecture
This session will present recent issues and models in assessing poverty globally, and what elses to be done to get the
poverty figures reduced significantly.
09.30 – 09.55 Dr. Usha Kanagaratnam, Senior Researcher, Oxford Poverty and Human Development
(25 mnt) Initiatives, University of Oxford.
“Multidimentional Poverty Assessment: What Else to be Done”
09.55 – 10.00 Photo Session and souvenir presentation
Panel 3: Government Budget, Poverty, and Income Inequality
This session will discuss challenges faced and strategies taken by government in combating poverty and income inequlity,
particularly due to constraints in government budget. The session will also present success stories on how local and
community-based values can be empowered to combat poverty and income inequality.
Panelists:
1. Osman Celik (Undersecretary of Treasury, Republic of Turkey)
10.00– 11:50 2. Alwaleed F. Alatabani (Lead Financial Sector Specialist, World Bank Vietnam)
(110 mnt) 3. Dr. Elan Satriawan (Head of Policy Working Group, the National Team for the
Acceleration of Poverty Reduction - TNP2K)
Discussion Chair:
Dr. Anggito Abimanyu (Comissioner, Hajj Finance Agency)
11.50 – 12.00 Photo Session and souvenir presentation to speakers and discussion chair
12.00 – 13.10 Lunch and Dzuhur prayer
5
6