Merger of Islamic Banks Crucial for Indonesia to become Islamic Finance Hub: Former Governor of West Nusa Tenggara

Former Governor of West Nusa Tenggara in Indonesia, Zainul Majdi, has called for the merger of Islamic banks as a vital step to grow and enhance the Shariah-compliant financial sector in the country.

Zainul Majdi, more popularly known as Tuan Guru Bajang (TGB), emphasised the fact that Indonesia’s Islamic finance sector lags far behind those of Malaysia and the United Kingdom, with the latter two countries at the forefront of the Islamic finance sector within their respective geographic regions. TGB noted that this was the case, despite Indonesia having the largest Muslim population in the world.

TGB stated that it was important to first understand the needs of the community a...