Guest Lecture, “The Impact of Legal and Regulative Framework on the Development of Islamic Finance Industry”
DEPOK (26/1/2022) – On Wednesday, Internasional Office and Center for Islamic Economics and Business (PEBS) FEB UI organized a guest lecture titled “The Impact of Legal and Regulative Framework on the Development of Islamic Finance Industry: Critical Perspectives on Islamic Moral Economy”. The speakers are Professor Mehmet Asutay from Durham Univetsity, UK and Dr. Ai Kawamura from University of Tsukuba, Japan. The guest lecture was moderated by Dr. Nur Dhani Hendranastiti from the Internasional Office FEB UI, and opened by Dr. Rahmatina Awaliah Kasri (Head of PEBS FEB UI) and Dr. Teguh Dartanto as the Dean of FEB UI.
The first lecture was delivered by Prof. Mehmet Asutay, who explained about the formation of an institution that it should come from the values and norms of the sources of knowledges in which it shapes the institution. The legal system affects economic and social life, which then affecting the social formation, resulting in the values and mode of production. However, the Islamic finance industry is formed from the institution first requiring it to be fit with the current system, resulting in disconnection between the values and norms with the Islamic financial institution.
The second lecture was delivered by Dr. Ai Kawamura. She explained the definition of Islamic economics and finance, Islamic moral economy, the grafting process of the Islamic finance industry following the theory by Portes, followed by examples of dispute resolution in Dubai and Malaysia to show that the legal systems can affect how to solve any disputes, particularly in Islamic finance. She also explained how development of technology and innovation can also affect the development of regulation.
The recording of the guest lecture can be accessed from PEBS FEB UI Youtube Channel at https://youtu.be/k2Hx-_L–tQ.