Banks are not the same all over the world. They provide for finance to an underlying economy and they do that with the financial products that are needed and asked for by the market participants (both consumers and producers). In that sense they not only sustain the economic model, but also enhance it.
Islamic finance offers products that are acceptable to the ethical standards of Muslim worldwide, that are not in conflict with any ethical standards of Christians and Hindus ... for that matter.
Whilst on the micro economic level (that of the consumer), it might give the same result and cost, it leads to a macro economic result that differs from the contemporary 'conventional' one. It avoids synthetic structuring and violent bubbles and bursts - for one thing - and offers a more sustainable growth.
Contemporary finance got used to series of crisis, originated by virtual wealth creation and believes it is inherent part of any financial model. Islamic finance however prevents financial vulcanos and tsunamis to hit local economies.
This blog will follow developments inside of Indonesia and also track its neighbors, insofar as relevant for the internal Indonesian market.
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