suhendar se., msi., ca chief of accounting group, bank...

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 6th 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 6th 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

Suhendar SE., MSI., CA. Chief of Accounting Group, Bank Syariah Mandiri

©PT. Bank Syariah Mandiri

Presented in 4th International Conference on Accounting & Finance UMYYogyakarta, 24 April 2018

Accounting Role at The Modern Era

Suhendar SE., MSI., CA. Chief of Accounting Group

Bank Syariah Mandiri

Islamic Banking Accounting;

Outline

Progress Islamic Banking

Indonesian Islamic Banking Accounting

Accounting Challenge at Modern Era

BSM Accounting Ecosystem

3

The Future of Accounting

Source: Islamic Banking Statistics, IFSA

Islamic Banking Players

Bank Syariah MandiriBank Muamalat IndonesiaBank Mega SyariahBRI SyariahBukopin SyariahPanin SyariahBank Victoria SyariahBCA SyariahJabar Banten SyariahBNI SyariahMaybank SyariahBTPN SyariahBank Aceh SyariahBank NTB

Islamic Commercial Bank (14 ICB)

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 JatengOCBC NISPBank SinarmasBPD Jambi

Islamic Business Unit (21 IBU)

Islamic Rural Bank (171 IRB)

2 2 2 2 2 3 3 3 35 6

11 11 11 11 12 12 13 13

3 36

8

15

19 20

26 2725

23 24 24 23 22 22 21 21

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

# BUS # UUS

Indonesian Islamic Banking UpdateI

BRIDanamonBukopin

BIIHSBC

IFI, BNIBank Jabar

Mega Syariah

BPD DKI, BPD Riau, BPD Kalsel, Niaga, BPD Sumut,

BPD Aceh, Permata

BTN, BPD NTB

BPD KalbarBPD Sumsel

BPD Kaltim

BPD DIY, BPD Sulsel,

BPD Sumbar,BPD Jatim,

BEI, Lippobank

Panin Syariah

BTPN & BPD Jateng

BPD Jambi

HSBC Closed

BRI Syariah,Bank Syariah

BukopinBTPN

Syariah(Convert

&spin-off)

Bank Aceh (menjadi Bank

Syariah)

BMIBSM

Victoria Syariah, BCA Syariah &

Jabar Banten SyariahBNI Syariah,

Maybank Syariah

Bank NTB (menjadi Bank

Syariah)

Source: Islamic Banking Statistics, IFSA

* Annotation: Commercial banks minus islamic banks, i.e islamic commercial banks (ICB) & islamic business unit (IBU)

1.8

2.7

4.1

7.9 15

.2

20

.9

26

.7

36

.5

49

.6

66

.1

97

.5 14

5.5 1

95

.0

22

7.7 27

2.3

29

6.3 3

56

.5

42

4.2

1.0

1.8

2.9

5.8 11

.7

15

.6

20

.7

28

.0

36

.9

52

.3

76

.0

11

5.4

14

7.5

17

1.7 21

7.9

23

1.2 2

79

.3 33

4.7

1.3

2.1

3.3

5.5 11

.3

15

.2

20

.4

27

.9

38

.2

46

.9

68

.2

10

2.7 14

7.5

17

7.3

19

9.3

21

3.0 24

8.0 28

5.7

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Assets Funding Financing

Islamic Banking Performance

IDR Trillion

Growth: CAGR

Islamic banking in Indonesia has increased rapidly over

the last view years compared to conventional banking

3.24

3.98

4.584.81 4.85 4.83

5.30

5.74

3.25

4.144.57

4.87 5.29 5.24

5.78

6.33

3.86

4.67

5.415.59

5.425.25

5.67 6.03

2010 2011 2012 2013 2014 2015 2016 2017

Aset DPK Pembiayaan

Market Share of Islamic

Banking vs Total Bank in

Indonesia

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%



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

1,158

1,3321,389

USD

Bn

1,2761,495

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%

33.00%

20.60%

9.30%

9.00%

6.10%

5.80%

2.90%

1.80%

1.70%

1.60%

0% 10% 20% 30% 40%

Iran

Saudi Arabia

Malaysia

UAE

Kuwait

Qatar

Turkey

Bangladesh

Bahrain

Indonesia

Global syariah Banking Assets by Region

(2012 – 2016)

Top 10 Countries in Global Syariah Banking Assets

(2016)

380 450 561 640 651

570

650 537 339

541

180

200 259

269

219

6

8 8

11

27

22

24 24

17

57

2012 2013 2014 2015 2016

GCC MENA (Exc. GCC) Asia Africa (Exc. North Africa) RoW

Non Bank Islamic Financial Institution

Players: 110 players of - Non Banking Islamic Financial Institution

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


3.172,2

396,9

Institutions

32,5

32,4

10,8

9,9 17,7Corporation Sukuk

Government Sukuk

Mutual Fund^

Others*

Islamic Multi finance

Equity

Islamic Insurance

1992 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20102011

20122013

20142015

Agt-16

0.0 1.8 2.7 4.1 7.9 15.2 20.9 26.7 36.5 49.6

66.197.5

145.5195.0

227.7272.3 296.3

305.3

Assets

Islamic Banking Performance

IDR Trillion

SFAS 59

Acc. Syariah Banking

PAPSI 2003

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)

SFAS 107 (Acc. Ijarah)

SFAS 108 (Acc. Syariah

Assurance Transaction)

SFAS 109

Acc. Zakat & Infaq

SFAS 110

Acc. Sukuk

SFAS 101 Rev.

Fully Implementation

Individual Impairment

Fully Implementation

Collective Impairment

PAPI

Indonesia Islamic Accounting History

UU. 21 About Syariah Banking Act.

Indonesian Islamic Banking Accounting UpdateII

FAS 11 Wa’ad

PAPSI 2013

SFAS 102 Rev.

20182017

Financial Accounting Standard

Sharia Accounting Standard

Accounting treatment in Sharia Banking is ruled by these two standard pillars. Bank will implement FinancialAccounting Standard which are not specifically regulated by PSAK Sharia and as long as they are not conflict withsharia principles.

Islamic Banking Accounting

Indonesian Islamic Banking Accounting Update II

• Accounting for Shariah BankingPSAK 59

• Presentation of Financial StatementPSAK 101

• Accounting for MurabahahPSAK 102

• Accounting for SalamPSAK 103

• Accounting for IstishnaPSAK 104

• Accounting for MudharabahPSAK 105

• Accounting for MusyarakahPSAK 106

• Accounting for IjarahPSAK 107

• Accounting for InsurancePSAK 108

• Accounting for Zakat and Infaq or ShodaqohPSAK 109

• Accounting for SukukPSAK 110

• Wa'adPSAK 111

Sharia accounting Standards for Sharia banking:


Component of Financial Statements


Comercial Activity Social Obligation

Financial Position

General

Purpose

Financial

Statements

To Ensure Comparability

With The Financial

Statements Of Previous

Periods

To Ensure Comparability

With The Financial

Statements Of Others

Entities

III Accounting Challenge at Modern Era

Regulation

CompetitionBig Data Analytical

Techno OrientedFaster & Intituitive

Reporting

Global Standard

New Age of Accounting 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.

Accounting Challenge at Modern EraIII

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)

Accounting Challenge at Modern EraIII

Name: PT Bank Syariah Mandiri

Shareholders: PT Bank Mandiri (Persero) Tbk. (99,999999%);

PT Mandiri Sekuritas (0,000001%).

Address: Wisma Mandiri I Building

Jl. MH Thamrin No. 5

Jakarta 10340 – Indonesia

Telephone: (62-21) 2300509, 39839000 (hunting)

Facsimile: (62-21) 39832989 (Corporate Secretary)

Homepage: www.syariahmandiri.co.id

Operating Date: November 1st 1999

Equity: IDR 7,43 Trillions

Office Network: 765 offices in all provinces throughout Indonesia

ATM network: 169,399 ATMs (ATM Syariah Mandiri, ATM Mandiri, ATM Bersama (Including ATM Mandiri and ATM

Syariah Mandiri), ATM Prima, and MEPS)

Total Employees: 15,926 people

BSM Profile

IV Bank Syariah Mandiri Accounting Ecosystem

Office Network

• Assets IDR90 trillion,

• Financing IDR61 trillion,

• Third party fund IDR82 trillion.

• Number of employee : -/+ 15 thousand


BSM Profile

Accounting Ecosystem Framework

Accounting Business Process

Alignment & Integration Framework


BSM reporting Ecosystem


(took from google image)

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

• 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)

After :

PMS

1.

BPA

3.

CPA

2.

UPA

4.

PPA

5.

SPA

Branch Profitability Analysis

Product Profitability Analysis

Segment Profitability Analysis

Customer Profitability Analysis

Performance Measurement System (PMS)


Unit Profitability Analysis

Performance Measurement System (PMS)


V THE FUTURE OF ACCOUNTING

GLOBAL

STANDARD

STRATEGY SHARIAH

TECHNOLOGY

Accounting is not enough

Technology

Accounting

No. 22

“Indeed, Allah will not change the condition of a people

until they change what is in themselves”

(Qs: Ar Ra’d;11)

Thank You

suhendar se., msi., ca chief of accounting group, bank...

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