Suhendar SE., MSI., CA. Chief of Accounting Group, Bank Syariah Mandiri Profesional Experience: - PT Bank Syariah Mandiri (2004-2018) - Ernst & Young (2002-2004) Education Background: - Economic Faculty University of Indonesia, Accounting (1997-2002) - Post Graduate University of Indonesia, Master in Islamic Economic & Finance (2009-2011) Organisation Involvement: - Board of Shariah Accounting Standard of Indonesian Accounting Institute (DSAS IAI, 2015-2019) - Chairman of Professional Association in Accounting & Tax ASBISINDO (2015-2018), - Supervisory Board of Center for Islamic Studies in Finance, Economics, and Development (CISFED) International Exposure: - Delegation of Asia s Future Leader Summit, NUS-Singapore, 2015 - Speaker at 6 th Asia Islamic Banking Conference, Kuala Lumpur, 2015 - Speaker at 5th XBRL Asia Roundtable 2015 (XART) and Indonesia National XBRL Conference, Jakarta, 2015 - Delegation of Islamic Finance Conference, Singapore, 2014 - Delegation Visit to Warees Investment, MUIS, Singapore, 2014 &2015 - Speaker at 6 th Asia & Middle East Dialogue, Jakarta, 2015 - Speaker at Indonesian Accounting Fair17th, Jakarta, March 2016 - Speaker at Sukuk Summit, Kuala Lumpur, Mei 2016 - Speaker Bangladesh Banking Summit 2016 - The Delegation of IFCG 2 at DIFC, Dubai
Islamic Banking Accounting; Accounting Role at The Modern Era Suhendar SE., MSI., CA. Chief of Accounting Group Bank Syariah Mandiri Presented in 4 th International Conference on Accounting & Finance UMY Yogyakarta, 24 April 2018 PT. Bank Syariah Mandiri
Outline Progress Islamic Banking Indonesian Islamic Banking Accounting Accounting Challenge at Modern Era BSM Accounting Ecosystem The Future of Accounting 3
I Indonesian Islamic Banking Update Islamic Commercial Bank (14 ICB) Bank Syariah Mandiri Bank Muamalat Indonesia Bank Mega Syariah BRI Syariah Bukopin Syariah Panin Syariah Bank Victoria Syariah BCA Syariah Jabar Banten Syariah BNI Syariah Maybank Syariah BTPN Syariah Bank Aceh Syariah Bank NTB Islamic Business Unit (21 IBU) Bank Danamon Bank Internasional Indonesia HSBC, Ltd Bank DKI BPD Riau BPD Kalsel Bank Niaga BPD Sumut Bank Permata Bank Tabungan Negara BPD Kalbar BPD Sumsel BPD Kaltim BPD DIY BPD Sulsel BPD Sumbar BPD Jatim BPD Jateng OCBC NISP Bank Sinarmas BPD Jambi Islamic Rural Bank (171 IRB) # BUS # UUS 8 6 2 2 3 2 3 2 2 Source: Islamic Banking Statistics, IFSA 15 Islamic Banking Players 19 20 3 3 3 3 26 5 27 6 25 23 24 24 11 11 11 11 23 22 22 12 12 21 21 13 13 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 BMI BSM IFI, BNI Bank Jabar BRI Danamon Bukopin BII HSBC BPD DKI, BPD Riau, BPD Kalsel, Niaga, BPD Sumut, BPD Aceh, Permata Mega Syariah BPD Kaltim BTN, BPD NTB BPD Kalbar BPD Sumsel BPD DIY, BPD Sulsel, BPD Sumbar, BPD Jatim, BEI, Lippobank BRI Syariah, Bank Syariah Bukopin BTPN & BPD Jateng Panin Syariah BPD Jambi Victoria Syariah, BCA Syariah & Jabar Banten Syariah BNI Syariah, Maybank Syariah HSBC Closed BTPN Syariah (Convert &spin-off) Bank Aceh (menjadi Bank Syariah) Bank NTB (menjadi Bank Syariah)
1.8 1.0 1.3 2.7 1.8 2.1 4.1 2.9 3.3 7.9 5.8 5.5 15.2 11.7 11.3 20.9 15.6 15.2 26.7 20.7 20.4 36.5 28.0 27.9 49.6 36.9 38.2 66.1 52.3 46.9 97.5 76.0 68.2 145.5 115.4 102.7 195.0 147.5 147.5 227.7 171.7 177.3 272.3 217.9 199.3 296.3 231.2 213.0 356.5 279.3 248.0 334.7 285.7 424.2 I Indonesian Islamic Banking Update Growth: CAGR Banks CAGR (2000 2017) Islamic Banks Convt' Banks* BSM Asset 37.92% 11.85% 34.00% Funding 40.53% 12.21% 43.06% Financing 37.51% 17.63% 36.25% 3.86 3.25 3.24 4.67 4.57 4.14 Market Share of Islamic Banking vs Total Bank in Indonesia 5.41 3.98 5.59 5.42 5.25 4.87 5.29 5.24 4.58 4.81 4.85 4.83 6.33 5.67 6.03 5.30 5.78 5.74 * Annotation: Commercial banks minus islamic banks, i.e islamic commercial banks (ICB) & islamic business unit (IBU) 2010 2011 2012 2013 2014 2015 2016 2017 Aset DPK Pembiayaan Islamic Banking Performance IDR Trillion Islamic banking in Indonesia has increased rapidly over the last view years compared to conventional banking 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Assets Funding Financing Source: Islamic Banking Statistics, IFSA
USD Bn I Indonesian Islamic Banking Update Global syariah Banking Assets by Region (2012 2016) Top 10 Countries in Global Syariah Banking Assets (2016) 1,158 622 180 570 1,332 24 24 8 8 200 259 1,389 1,276 17 11 269 537 650 339 1,495 57 27 219 541 Indonesia Bahrain Bangladesh Turkey Qatar Kuwait UAE 1.60% 1.70% 1.80% 2.90% 5.80% 6.10% 9.00% 561 640 651 380 450 2012 2013 2014 2015 2016 GCC MENA (Exc. GCC) Asia Africa (Exc. North Africa) RoW Malaysia 9.30% Saudi Arabia 20.60% Iran 33.00% 0% 10% 20% 30% 40% CAGR GCC Syariah Banking Assets (2012-2016): 14.4% CAGR MENA Syariah Banking Assets (2012-2016): -1.3% CAGR ASIA Syariah Banking Assets (2012-2016): 5.3% Gulf Cooperation Council countries (GCC) become the main driver of global syariah banking assets in 2016 with USD651 Bn (±44% of total global banking assets) Total assets in MENA (Exc. GCC) and Asia in 2015 and 2016 were declined due to USD conversion rate volatility in several key countries (e.g Iranian Rial with -9% declining vs USD; Malaysia Ringgit with -12% declining vs USD and Turkish Lira with -19% declining vs USD in 3 years period 2014-2016) Using the local market currency, Malaysia and Turkey syariah banking assets grows 9.5% and 9.0% yoy in 2016 Within the top 9 countries in Global Syariah Banking Assets, Indonesia ranked 7th with 3.80% (now 5,38%) market share for syariah banking
I Indonesian Islamic Banking Update Players: 110 players of - Non Banking Islamic Financial Institution Non Bank Islamic Financial Institution 9,9 17,7 Corporation Sukuk 32,4 396,9 32,5 Government Sukuk 10,8 Mutual Fund^ Institutions Others* Islamic Multi finance 3.172,2 Islamic Insurance Equity The Growth of islamic banking are followed by other islamic financial institution growth Note: ^ data availability on -16 * Pawning, Ventures Capital Funds, Secondary Mortgage Facility, Eximbank & IMF s
II Indonesian Islamic Banking Accounting Update Indonesia Islamic Accounting History Assets Islamic Banking Performance IDR Trillion 0.0 1.8 2.7 4.1 7.9 15.2 20.9 26.7 36.5 49.6 1992 2000 2001 2002 2003 2004 2005 PAPI PAPSI 2003 SFAS 59 Acc. Syariah Banking 2006 2007 2008 2009 66.1 2010 97.5 2011 305.3 145.5 195.0 227.7 272.3 296.3 2012 SFAS 110 Acc. Sukuk SFAS 101 Rev. SFAS 109 Acc. Zakat & Infaq SFAS 107 (Acc. Ijarah) SFAS 108 (Acc. Syariah Assurance Transaction) UU. 21 About Syariah Banking Act. SFAS 101 (Preparation of Syariah Financial Statement) SFAS 102 (Acc. Murabahah) SFAS 103 (Acc. Salam) SFAS 104 (Acc. Istishna) SFAS 105 (Acc. Mudharabah) SFAS 106 (Acc. Musyarakah) 2013 2014 2015 Fully Implementation Individual Impairment PAPSI 2013 SFAS 102 Rev. 2017 Agt-16 2018 Fully Implementation Collective Impairment FAS 11 Wa ad
II Indonesian Islamic Banking Accounting Update Islamic Banking Accounting Financial Accounting Standard Sharia Accounting Standard Accounting treatment in Sharia Banking is ruled by these two standard pillars. Bank will implement Financial Accounting Standard which are not specifically regulated by PSAK Sharia and as long as they are not conflict with sharia principles.
II Indonesian Islamic Banking Accounting Update Sharia accounting Standards for Sharia banking: PSAK 59 PSAK 101 PSAK 102 PSAK 103 PSAK 104 PSAK 105 PSAK 106 PSAK 107 PSAK 108 PSAK 109 PSAK 110 PSAK 111 Accounting for Shariah Banking Presentation of Financial Statement Accounting for Murabahah Accounting for Salam Accounting for Istishna Accounting for Mudharabah Accounting for Musyarakah Accounting for Ijarah Accounting for Insurance Accounting for Zakat and Infaq or Shodaqoh Accounting for Sukuk Wa'ad
II Indonesian Islamic Banking Accounting Update Component of Financial Statements Comercial Activity Social Obligation Financial Position To Ensure Comparability With The Financial Statements Of Previous Periods To Ensure Comparability With The Financial Statements Of Others Entities General Purpose Financial Statements
III Accounting Challenge at Modern Era New Age of Accounting Era Big Data Analytical Global Standard Competition Techno Oriented Faster & Intituitive Reporting Regulation
III Accounting Challenge at Modern Era New Age of Accountant Era 1. To record main business transaction are no more accounting division/ department and accountant needed 2. The data or information is required for real time basis 3. The technology cover all the most process of accounting cycles from posting to reporting. 4. The accounting Standard is more scientific 5. Accounting is still responsible for the transaction are done by others The changes of Technology and the rapid growth of business sizes have transformed role and organization of accounting.
III Accounting Challenge at Modern Era Accounting Challenges in Islamic Banking 1. To fit policy with Shariah Law, Accounting Standard and other regulation, 2. To produce accurate number and decrease error, 3. To improve process and control, 4. To fit time delivery, 5. To drive company performance & Competitive advantage (took from google image)
IV Bank Syariah Mandiri Accounting Ecosystem BSM Profile Name: PT Bank Syariah Mandiri Shareholders: PT Bank Mandiri (Persero) Tbk. (99,999999%); Address: Telephone: Facsimile: Homepage: PT Mandiri Sekuritas (0,000001%). Wisma Mandiri I Building Jl. MH Thamrin No. 5 Jakarta 10340 Indonesia (62-21) 2300509, 39839000 (hunting) (62-21) 39832989 (Corporate Secretary) www.syariahmandiri.co.id Operating Date: November 1 st 1999 Equity: Office Network: ATM network: Total Employees: IDR 7,43 Trillions 765 offices in all provinces throughout Indonesia 169,399 ATMs (ATM Syariah Mandiri, ATM Mandiri, ATM Bersama (Including ATM Mandiri and ATM Syariah Mandiri), ATM Prima, and MEPS) 15,926 people
IV Bank Syariah Mandiri Accounting Ecosystem BSM Profile Office Network Assets IDR90 trillion, Financing IDR61 trillion, Third party fund IDR82 trillion. Number of employee : -/+ 15 thousand
IV Bank Syariah Mandiri Accounting Ecosystem Accounting Ecosystem Framework Accounting Business Process Alignment & Integration Framework
IV Bank Syariah Mandiri Accounting Ecosystem BSM reporting Ecosystem Before: - Decentralized in 136 branch - Need ±400 employee - Need ± 5 days - Need expense ±IDR4.8 billion 9.6 billion - Often obtain penalty from regulator (BI) - High occurance wrong data After : Centralized in head office Need ±10 employee Need ± 5 hours Saving expense ±4.8billion 9.6 billion Seldom obtain penalty from regulator (BI) High validity data Obtain positive feedback from finance services authority (OJK) (took from google image)
IV Bank Syariah Mandiri Accounting Ecosystem Performance Measurement System (PMS) Segment Profitability Analysis 1. BPA Branch Profitability Analysis 5. SPA PMS 2. UPA Unit Profitability Analysis 4. PPA 3. CPA Product Profitability Analysis Customer Profitability Analysis
IV Bank Syariah Mandiri Accounting Ecosystem Performance Measurement System (PMS)
V THE FUTURE OF ACCOUNTING Accounting is not enough GLOBAL STANDARD Technology TECHNOLOGY STRATEGY SHARIAH Accounting
Thank You Indeed, Allah will not change the condition of a people until they change what is in themselves (Qs: Ar Ra d;11) No. 22