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18 December 2012 | PR 12/229

Loughborough professor praised for work with Bank Indonesia


Professor Maximilian Hall

A Loughborough University academic has been praised for the ‘major impact’ he has had on Bank Indonesia and the Islamic banking industry.

Professor Maximilian Hall has not only advised Bank Indonesia, the Indonesian central bank, on financial policy-making for many years but also trained four PhD students who are now employed in influential positions at the Bank.

In letters to the university, two Bank Indonesia deputy governors hailed the research and work done for them since 1996 by Professor Hall, Professor of Banking and Financial Regulation in the School of Business and Economics.

Muliaman D Hadad said: “Professor Hall has had a major impact on policy-making at the Bank, both directly, as a result of his research activities, and indirectly, as a result of his other activities involving the Bank, ie.PhD supervision, staff training, board presentations and keynote speeches at Bank conferences.”

Dr Halim Alamsyah said the design of the Indonesian capital adequacy framework for Islamic Banks  was inspired by a paper written by Professor Hall and one of his PhD students, Dadang Muljawan .

He said: “Professor Hall, through his joint research with Dadang Muljawan, has indirectly contributed to the development of prudential framework of Islamic banking, particularly in the area of capital adequacy. His contribution benefits the Indonesian Islamic banking industry and Islamic banking internationally.”

Muljawan is now on secondment at the Islamic Development Bank in Jeddah, where Professor Hall recently presented a Keynote Address at the ‘Expert Meeting on the Development of Financial Sector Assessment Programmes for Islamic Finance’, while the other three PhD graduates are also in key positions.

Wimboh Santoso is not only a director of Bank Indonesia but is also their Chief Representative officer in New York, one of their major overseas postings.

Gandjar Mustika is Bank Indonesia’s chief officer in the Bandar Lampung region of Sumatra, and Rizki Wimanda is in the Economic Research and Monetary Policy Department of Bank Indonesia in Jakarta.

As well as the four PhD graduates, Professor Hall also taught six others who graduated with Masters degrees, gave five training sessions at the Bank, three presentations to the board on policy issues, and six key-note speeches at major international banking conferences, the latest, on ‘Financial System Stability’, being held in Bali on December 6.

He also visited the bank four times between 2007 and 2010 to present his findings on Indonesian bank efficiency over that period.

Professor Hall said he was proud of the work he has done with Bank Indonesia and the PhD students he trained. He said that, as far as he was aware, Loughborough was the only university in the world to have a 100 per cent success rate with PhDs.

Santoso moved to Loughborough in 1996 on the recommendation of his mentor at Bank  Indonesia who had been impressed with Professor Hall’s research, and the rest followed.
Professor Hall said: “It highlights the real world impact of my research. We have got these people in, they have got their PhDs and have returned to the central bank where they are high up in policy circles. And we are still training them and doing joint research with them, which is what we are all about.

“Obviously I’m not claiming credit for everything but they are implementing what we are recommending.

“And the economy has gone from a situation where it was bankrupted  in the Asia financial crisis of 1997/98 and lost 60 per cent of its GDP in one year, to one of the most stable with the highest growth rates, six per cent, in the world. It’s a formidable transition.

“It’s fantastic, and they are all close friends too. It’s a great success story for the university.
“Initially, a lot of the Bank’s high-flyers went to the US for their training but Loughborough broke that hold because of its unique focus on financial regulation and Islamic banking.”


For all media enquiries contact:

Chris Goddard
PR Officer
Loughborough University
T: 01509 223491
E: C.J.Goddard@lboro.ac.uk 

Notes for editors:

Loughborough is one of the country’s leading universities, with an international reputation for research that matters, excellence in teaching, strong links with industry, and unrivalled achievement in sport and its underpinning academic disciplines.

It was awarded the coveted Sunday Times University of the Year 2008-09 title, and is consistently ranked in the top twenty of UK universities in national newspaper league tables. In the 2011 National Student Survey, Loughborough was voted one of the top universities in the UK, and has topped the Times Higher Education league for the Best Student Experience in England every year since the poll's inception in 2006. In recognition of its contribution to the sector, the University has been awarded six Queen's Anniversary Prizes.

It is a member of the 1994 Group of 12 leading research-intensive universities. The Group was established in 1994 to promote excellence in university research and teaching. Each member undertakes diverse and high-quality research, while ensuring excellent levels of teaching and student experience.

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This page was last updated on Tuesday December 18, 2012 12:35