INCEIF’s 2nd public lecture in Jakarta

DSC_0569INCEIF today partnered with Bank Indonesia (Indonesia’s central bank) for the second time to jointly hold a public lecture in Jakarta.

The lecture, “Islamic Private Equity: The Emerging Product with Tremendous Potential” was delivered by INCEIF Chief Academic Officer Datuk Prof Dr Syed Othman Alhabshi.

In her welcome remarks, Bank Indonesia Madam Siti thanked INCEIF in general and Datuk Syed Othman in particular for sharing the knowledge on Islamic private equity with the Indonesian audience. “We are honoured and look forward to such discourse as we could learn from each other’s experience in developing the Islamic finance industry.”

Bank Indonesia Senior Researcher at its Center for Central Banking Research and Education, Dr Ascarya, moderated the lecture which was held at Bank Indonesia.

A total of 75 people from the local financial services fraternity, zakat and pension fund institutions, universities and staff of Bank Indonesia attended the lecture. INCEIF online students and alumni who are based in Jakarta and neighbouring city of Bandung also attended. They took the opportunity to catch up on INCEIF news with Datuk Syed Othman and each other.

In his lecture, Datuk Syed Othman said private equity is a very important class of assets that have come to play an important role in providing a worthwhile diversification for investors. “The fact that it is not listed in any stock exchanges makes it more interesting because it offers a different kind of risk-return spectrum.

“Today, we have found a considerable number of Islamic Private Equity funds that have emerged in a good number of Muslim markets. It is interesting to explore the behaviour of Muslim venture capitalists in a few of these countries so as to understand the average size of the funds, their appetite for risks, the sector they venture in, the proportion of their assets they invest in, the investment strategy they adopt and the average returns they earn.”

Datuk Syed Othman added that the information would be very useful to determine the future direction of Islamic Private Equity Funds, the role they would play in the different markets, the challenges they would be facing and their expected future performance.

Following the lecture, a Q-and-A session was held where members of the audience discussed the topic, from the Indonesian perspective, as well as the Malaysian experience as one of the pioneers in successful implementation of the Islamic financial services industry.

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