Indonesian President Challenges Islamic Banks To Lead In Global Economy

March 2, 2009 10:37 a.m. EST

Jakarta, Indonesia (AHN) - Indonesian President Susilo Bambang Yudhoyono on Monday challenged Islamic banks to assume the lead role in finding a solution to the global economic crisis.

Business and political leaders from 38 nations are attending the World Islamic Economic Forum in Jakarta, Indonesia. Yodyohono said it is now the turn of Islamic banks, which engaged in Islamic financing, to perform missionary financial work in the West.

The Indonesian president pointed out Islamic banks are in a better position to address the crisis because most of the banks did not invest in toxic assets. The banks follow the Muslim law on prohibition of interest payments and sharing of credit risk.

Yodyohono, who proposed the establishment of a Muslim support fund, said, quoted by the Jakarta Post, "Muslim countries with vast reserves but without a real agricultural sector can come to the rescue... And since they are food importers, they will also be securing their own food supply needs."