Indonesia’s capital market regulator is preparing a
five-year road map for Islamic finance to expand the industry in Southeast
Asia’s largest economy, reports the Jakarta Post (30 May 2014).
The plan will help boost the number of Islamic capital
market products and expand the industry’s investor base, the Financial Services
Authority (OJK) said in a statement.
The OJK added that it was seeking market input for the
road map and would set up discussion groups with stakeholders, including the
central bank, the Finance Ministry, the Indonesian Stock Exchange (IDX) and the
country’s national sharia board.
It also said it was refining rules for the issuance of
Islamic securities, which it expected to be completed this year. These would
include details on the settlement of Islamic financial transactions, disclosure
requirements for sukuk (Islamic bonds) and guidelines for sukuk trustees, Bloomberg
reported.
Indonesia has 11 Islamic banks and 23 Islamic windows
operated by conventional banks. Their combined Islamic banking assets grew 24
percent to Rp 242 trillion (US$20.8 billion) last year, giving the sector a 4.9
percent share of total banking assets, OJK data shows.
Last month, the OJK said it would implement risk
management guidelines for Islamic insurance companies and that it was now a
full member of the Malaysia-based Islamic Financial Services Board, a major
standard-setting body of the industry.
The OJK took over the supervision of banks, brokerages and
insurance firms from the central bank and Capital Market and Financial
Institution Supervisory Agency (Bapepam-LK) in January this year.
