Sign up | Log in



Home  >>   Daily News  >>   Indonesia  >>Finance  >> Indonesia’s new roadmap for Islamic finance boost
NEW UPDATES Asean Affairs  12 June 2015  

Indonesia’s new roadmap for Islamic finance boost

INDONESIA’S capital market regulator has published a five-year strategy for the Islamic finance industry, its latest effort to shake the sector out of its niche status in the world’s most populous Muslim country.

The roadmap from Indonesia’s financial services authority, Otoritas Jasa Keuangan (OJK), charts an extensive agenda ranging from reducing fees on Syariah-compliant products to developing education and training programmes.

It aims to encourage an Islamic finance market that lags behind Indonesia’s peers: Islamic banks hold roughly five per cent of total banking assets in the country, compared with more than 20 per cent for neighbour Malaysia and well behind the 50 per cent in Saudi Arabia.

Authorities want Indonesia’s Islamic banks to hold at least 15 per cent of the market by 2023, an ambitious target considering the sector’s growth is stalling.

“Its difficult to see how they would achieve that target without substantial reforms within the Islamic banking space,” said Khalid Howladar, Moody’s global head of Islamic finance.

“Overall globally, its still a positive growth story. Indonesia in particular has a lot of potential, but it’s had a lot of potential for a long time.”

Part of the problem lies with low financial literacy among the public, with Islamic finance further behind, according to a nationwide survey commissioned by the OJK.

The roadmap would expand on education and promotion activities, while developing rules and industry certification for religious experts that endorse Islamic financial products.

Rules on rights and obligations regarding underlying assets of Islamic bonds (sukuk) would be developed this year, while a law on Islamic securities would be drafted by 2017.

The OJK will also speed up the registration of Islamic securities and relax limits on holdings by Islamic mutual funds.

It will also publish rules on syariah-compliant versions of margin trading, repurchase agreements and hedging.

Coordination among the various government bodies is also set to increase, including the central bank and the ministry for national development planning.

With the exception of Malaysia, a lack of coordination in most majority-Muslim countries has been a persistent drag on the industry’s development, Howladar said.

“If these new developments represent a change in that thinking, then we think that would be positive for the sector.”

In November, the OJK signed an agreement with the country’s national sharia board to strengthen oversight of the Islamic finance industry, supporting a centralised approach being favoured elsewhere around the globe.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           June 12 , 2015 Subsribe Now !
• Thai bourse market report for May 2015 Subcribe: Asean Affairs Global Magazine
• Saha cancels Myanmar estate
• Indonesia’s new roadmap for Islamic finance boost
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Third annual Myanmar Hospitality and Tourism Conference attracted more than 200 delegates
• ASEAN needs to reform aviation rules 
Asean Analysis                   June 12, 2015
• Asean Analysis June 12, 2015
Tackling Southeast Asia’s Migrant Crisis
Advertise Your Brand

Asean Stock Watch  June 11,   2015
• Asean Stock Watch-June  11, 2015
The Biweekly Update
• The Biweekly Update June 12, 2015

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand