for cooperation among the educational institutions globally as well as domestically. with the technology in hand, the cooperation between different parties may be conducted more easily. 5. islamic development bank has involved in many education development project conducted in any countries. idb intervention in indonesia has been conducted in terms of the physical development of university building. i hope that further intervention may also cover the development of curriculum so that the universities offering islamic economics and finance may equip young generation with the knowledge and skills which relevant to the market requirement. distinguished guests, ladies and gentlemen, 6. in this occasion, allow me to share bank indonesia initiatives in the area of islamic economics and financial development, especially in the human capital development. in my opinion, when driving islamic economics and finance as an inclusive system in the national economy, human capital serves as the main pillar. therefore, we support the development in three components of human capital in the market that consist of academics, practitioner and society. 7. first, at academic side, bank indonesia has enhanced the collaboration and cooperation with universities, particularly in the area of research, public lecture, scholarships and research grant. in addition, bank indonesia has published a number of books on islamic economics and finance serving as academic references to the academics. the most recent book launched by bank indonesia entitled “ the journey of islamic banking in indonesia : institution, policy and challenges ”. beside universities, bank indonesia also allocated its resources to human capital development on earlier education including islamic boarding schools or “ pesantren ”. currently, bank indonesia is preparing a set of lecture bis central bankers ’ speeches modules which cover the area of : i ) islamic social finance, including zakat and waqf ; ii ) empowerment of micro and small enterprise ; and iii ) entrepreneurship development. expectedly, these materials are ready to launch by next july and adopted by 5 universities. moreover, in order to encourage and foster research activities in the area of islamic economics, monetary and finance, bank indonesia has launched journal of islamic monetary economics and finance. the latest volume has just been issued in february 2016. we hope that this journal will be a bridge between theory and practice in the area islamic economics, monetary and finance. 8. second, at practitioners ’ side, bank indonesia also continuously conducts capacity building programs to enhance the competence of human resource in islamic finance industry. we maintain good cooperation with local and international institutions, for facilitating expert visit to indonesia, conducting seminars, workshop and facilitating joint research activities on islamic economics and finance. next week

. 2 billion ( as of may 2011 ) and annual growth of 9. 3 % ( 2010 ). in the near future, i strongly believe that sukuk will grow significantly as it can be developed to have various forms of contracts with attractive features offering competitive returns and liquidity. in addition, the existences of excess liquidity from surplus savings in asia and oil revenues countries across middle east become a potential demand for sukuk. this opportunity can be used by the government or private companies to issue sukuk as an alternative financing source. the current positive trend of issuing sukuk for financing government ’ s infrastructure projects provides a good signal of support from the government that should be maintained. ladies and gentlemen, through this summit, where the meeting of regulators, practitioners, academics, potential investors and industry experts are possible, it is hoped that the potential of the islamic banking and finance will be maximized to further improve the current swift development of the industry. in the future, it is expected that asia will grow to be the next islamic finance hub, in addition to middle east. bridging these two potential markets for developing islamic financial industry will also contribute to the increase of economic growth in respective regions. despite all those success stories and potential growth of islamic finance, we believe that the road ahead remains challenging. i would like to point out four main issues that can be further discussed in this summit. firstly, concerning the islamic financial products. in terms of product development, islamic financial institutions should develop innovative products that can bring up the uniqueness of sharia components. instead of emulating conventional products or adopting islamic dressing to existing products, industry should move towards creating pure or genuine sharia products that seek to bridge the financial sector with real sector. bis central bankers ’ speeches i believe the strength as well as the uniqueness of islamic transactions lies within the profitloss sharing mechanism, provision of underlying assets and commitment to promote real sector. however, in general, the record of profit - loss sharing ( pls ) transactions in islamic banking industries across countries are still relatively low. i strongly believe that increasing portion of profit - loss sharing transactions, such as mudharabah and musyarakah, will be beneficial for both the financial sector and the real side of the economy and will eliminate decoupling or detachment effect between two sectors, a situation that was behind the recent global financial crisis. another issue related to product development is about product codification. at the moment, as you all