– Secretary General (Secretary General) of the Indonesian Sharia Bank Association (Asbisindo), Herwin Bustaman explained three points why the Sharia Business Unit (UUS) must be maintained.

First, globally there is no fatwa prohibiting the Islamic Business Unit (UUS) model. In fact, it is still being adopted by most countries including the Kingdom of Saudi Arabia.

Second, there will be more harm than benefits if UUS is abolished. Third, UUS also plays an important role in developing the sharia banking industry.

According to Herwin, the discussion on UUS has come a long way.

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“The request from the Islamic banking expert committee is how to ensure that there is no mixing between conventional and sharia. So there is a requirement to run UUS financial reports must be separated, the records are separated. The legal basis is tafriqul halal ‘anil haram,” he said.

The results of several studies found that small Islamic Commercial Banks (BUS) in developing countries are too small to be able to contribute to that country.

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The danger of monopolistic competition is that big banks are not only difficult but also dangerous. The spin-off didn’t yield better performance even after four years.

“Globally, in 2021 Bank Syariah Indonesia (BSI) is ranked 23rd among the largest Islamic banks in the world. Similar to other banking markets, BSI requires equivalent/strong local counterparts to support becoming the Top 10 Global Islamic Bank,” he said .

MM Study Program Lecturer at Paramadina University, Dr. Handi Risza in his presentation stated that the potential for Islamic banking is still very broad while the market share is still in the range of 6-7 percent.

Handi alluded to the latest challenges in the Islamic banking industry “The market share of the Islamic financial services industry is 10 percent, while Islamic banking is 7 percent

Islamic banking is demanded to be able to provide financial needs in the development of the halal industry and the development of Islamic financial institutions.”

Islamic bank capital is still limited. So that there are still obstacles in the development of information systems and technology in the face of increasingly high competition in the digital era.

By Chavez

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