In accordance with the tagline of Universitas Muhammadiyah Yogyakarta (UMY) ‘Unggul and Islami’,’ lecturers and students of Faculty of Economics and Business (FEB) presented their research at the 11th International Conference Bulletin of Monetary Economics and Banking organized by Bank Indonesia on Thursday (24/8) in Jakarta. UMY delegates led by an Economics lecturer of UMY Dimas Bagus Wiranata Kusuma presented his research entitled “Building Islamic Banking Resilience Index in Indonesia”.
Dimas stated that, in this uncertain economic condition, it is necessary to have a surveillance tool that functions as not only a risk alarm but also a method mitigating systemic risk. “Developing a resilience index especially on Sharia Banking becomes the main focus in our research. First, the research findings gave recommendations to Bank Indonesia that the resilience of Sharia banking in Indonesia is still not solid and amid global uncertainty. Second, resilience in a capital and liquidity area is necessary to strengthen the resilience towards global instability,” he explained on a release on Tuesday (29/8).
Dimas also informed that keynote speakers of the international conference were Governor of Bank Indonesia, Perry Warjiyo from Bank Indonesia, Prof. Hal Hill from the Australian National University, Adrew Sheng of The University of Hong Kong, and Professor. Ari Kuncoro from University of Indonesia. “Generally, all of these speakers highlighted aspects of vulnerability, uncertainty, complexity, and ambiguity (VUCA) that hit the global economy. Encountering the VUCA, it is expected that Indonesia’s economy can still be resilient and maintain the momentum of economic growth,” he conveyed.
The discussion also proposed such as encouraging the resilience of financial institutions, creating indicators that become surveillance of financial system resilience, and enhancing cooperation and coordination among countries. “Thus, to face the VUCA, escalating the synergy among countries is necessary to sustain resilience and economic growth,” he declared.
In addition, the international conference is an annual event held by the Bank Indonesia Institute. This year the event brought ‘Synergy on the VUCA World: Maintaining the Resilience and Momentum of Economic Growth’ as the theme. The prestigious event was joined by 24 selected presenters of 130 research papers from various countries including Indonesia, Turkey, Kazakhstan, England, Kyrgyzstan, Spain, and the United States.
