The Faculty of Islamic Economics and Business, UIN Sunan Kalijaga Yogyakarta, continued its International Distinguished Lecture Series by organizing a special lecture for lecturers and faculty members on the topic "Institutional Resilience: How State Backed Islamic Finance Fortifies Türkiye's Economy Amidst Global Conflict." The event was officially opened by Assoc. Prof. Dr. Sunaryati, S.E., M.Si., who welcomed the participants and highlighted the importance of international collaboration in research and higher education. The lecture was delivered by Assoc. Prof. Dr. Hakan Aslan, Head of the Department of Islamic Economics and Finance at Sakarya University, Türkiye, and moderated by Izra Berakon.
During his presentation, Dr. Hakan explained how Türkiye has built a strong and resilient Islamic financial system despite facing many geopolitical challenges. Located in a region surrounded by conflict, Türkiye has strengthened its economy through effective government policies, sound financial regulation, and continuous support for participation banking. One of the main highlights of the lecture was the remarkable growth of Türkiye's participation banking industry. Since 2015, the sector has experienced rapid expansion, with total assets reaching approximately TRY 4.3 trillion by the end of 2025. This growth shows that participation banking has become an important pillar of Türkiye's economy.
Dr. Hakan explained that the strength of Türkiye's Islamic finance industry is built on three main principles. First, financing is connected to real economic activities through tangible assets. Second, Islamic finance promotes risk sharing instead of simply transferring risk. Third, Türkiye has successfully attracted international investors by providing a stable and trustworthy financial environment during times of global uncertainty. The presentation also highlighted the important role of state owned participation banks such as Ziraat Katılım, Vakıf Katılım, and Emlak Katılım. These institutions have supported infrastructure development, housing finance, waqf based financing, and financial inclusion. Together with supportive regulations, sovereign sukuk, and digital innovation, they have strengthened the country's Islamic financial ecosystem.
The lecture ended with an engaging discussion on how Türkiye's experience could inspire the future development of Islamic economics and finance in Indonesia. Participants also explored opportunities for future collaboration in research, academic exchange, and joint international publications. The Distinguished Lecture reflects FEBI UIN Sunan Kalijaga's commitment to strengthening international partnerships and creating opportunities for lecturers and researchers to exchange knowledge with leading scholars from around the world.