History of STEI TAZKIA

Islamic banking and finance are rapidly becoming vital instruments in the interconnected modern global economy. Islamic banking and finance see rapid development, not only in muslim majority countries, but also in non-muslim countries such as the United States, Australia, Ireland, the United Kingdom, Luxembourg, Canada, Switzerland and Virgin Islands. In Indonesia, Islamic banking and finance is also growing at a similar rate to those of other muslim-majority countries such as Malaysia, Pakistan, Iran and Sudan.The growth of Islamic financial institutions around the world would also mean that there is a growing demand for quality human resource. Islamic finance practitioners are not only required to be an expert in economic-related field, but also an in-depth comprehension of sharia laws. This competence will need to be supported by resolute commitment in building an economic system based on Islamic values.Tazkia was founded in 1998, amidst the backdrop of Asian financial crisis. Bank Indonesia started to turn its attention to the development of sharia banking as a solution to rejuvenate the national banking industry, after the financial collapse that is followed by multidimensional crisis. At the moment, Tazkia was given by Bank Indonesia to provide training and educate banking practitioners and industry leaders on matters pertaining to Islamic banking and finance. As a result, UU no. 10 1998 regarding changes to UU no. 7 1992 was put forward. Several banks made the menumental decisions to either convert to sharia banking, or create unit that is sharia-compliant. Bank IFI created its sharia venture unit (unit usaha syariah –UUS). Bank Susila Bhakti (BSB) converted in its entirety into a fully sharia-compliant bank, Bank Syariah Mandiri (BSM). Their step was later followed by, amongst others, Bank Jabar, Bank Bukopin, Bank Danamon, Bank Jateng, Bank Sumut, Bank BRI and Bank BNI which now have sharia unit.Whilst providing sharia training and education as well as supporting the creation of sharia banking units, Tazkia came into intensive discussions with banking practitioners, financial authorities, Islamic clerics and academicians. From these discussions it was concluded that to fulfil human resource demand made by the nascent sharia banking and financial industry, short-term training of banking and financial practitioners was deemed insufficient. Sharia banking and financial industry, sooner or later, would need professionals educated comprehensively in relevant subjects from primary-level education up to tertiary-level education.Higher education was seen as essential in fulfilling the urgently in-demand human resource educated specifically for the task. To assess the role of higher education in preparing competent human resource, Tazkia held various seminars, academic workshops, and scholarly forums on Islamic Economics Education in various universities throughout the country. These events invited a number of renowned national and international figures, such as: Dr. Umer Chapra (senior consoultant of Islamic Development Bank), Prof. Dr. Satrio Sumantri Brodjonegoro (Director-General of Directorate General of Higher Education), Dr. Cuk Sukiadi (Chairman of Ikatan Sarjana Ekonomi Indonesia), Prof. Dr. Johan Syarif (Consortium of Economic Sciences), Prof. Dr. Halide (Professor in Universitas Hasanudin), Prof. Dr. Amin Suma (Deacon of Sharia Department of UIN Syarif Hidayatullah Jakarta), Prof. Dr. Didin S. Dmanhuri (Professor in Bogor Agricultural Institute, and Drs. Dumairi, MA (lecturer of post-graduate school of UGM Yogyakarta).On the other hand, appraisal of the demand by sharia industry was likewise a necessary step. This was achieved by holding seminars on the prospect of sharia financial institutions from the perspective of employees and the market. These seminars featured directors of sharia financial institutions, such as Riawan Amin, M.Sc. (general manager of Bank Muamalat Indonesia, Ir. Agus Siswanto (general manager of Takaful Family Insurance) and Harisman, M.A. (head of sharia banking beureau of Bank Indonesia).In conclusion, Tazkia deemed the establishment of a specialised higher education institution necessary. STEI Tazkia was established under patronage of Yayasan Tazkia Cendekia in accordance to Akta no. 5 Notaris Syarif Tanudjaja dated the 11th of March 1999. STEI Tazkia received its operational permit in 2002.