REPUBLIKA.CO.ID, JAKARTA -- The Indonesian Shariah banking's Finance to Deposit Ratio (FDR) touched 103 percent as of October 2013, suggesting that it is relatively safe, a Central Bank official stated.

"We consider the FDR at 103 percent to be safe," Bank Indonesia's Executive Director, Shariah banking department Edy Setiadi said.

Shariah commercial banks (BUS) and Sharia business units (UUS) have chiefly contributed to an FDR of 103 percent, he noted.

"On average, Shariah banks have an FDR of 100 percent, with only one or two of them having an FDR percentage crossing 100," he stated.

Although Bank Indonesia has not yet set the minimum and maximum FDR requirements for Shariah banks, it will try to maintain the FDR at a level of 100 percent, he claimed.

So far, the Central Bank has set the FDR for conventional banks at 78-92 percent.

"We have tried to maintain the FDR at 103 percent, and the total assets (of the Shariah banks) have been corrected. It will be much higher if nothing is done," he noted.

He said the Central Bank will restrict financing to import-oriented sectors.

"Financing to sectors such as small and medium businesses, which are export-oriented and use local resources, will not be limited," he added.

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