DUBAI May 28 Indonesia's capital market
regulator is preparing a five-year roadmap for Islamic finance
in an effort to expand the industry in southeast Asia's largest
The plan will help to boost the number of Islamic capital
market products and expand the industry's investor base,
Otoritas Jasa Keuangan (OJK), the financial services authority,
said in a statement.
The OJK said it was seeking market input for the roadmap and
would set up discussion groups with stakeholders including the
central bank, the finance ministry, the stock exchange 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.
Indonesia has 11 full-fledged Islamic banks and 23 Islamic
windows operated by conventional banks. Their combined Islamic
banking assets grew 24 percent to 242 trillion rupiah ($21.4
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 for the industry.
The OJK took over supervision of banks, brokerages and
insurance firms from the central bank and the capital market
watchdog Bapepam-LK in January this year.
(Editing by Andrew Torchia)