Islamic Finance in Indonesia: Past, Present and Future

This insight aims to highlight new rules governing the Islamic finance sector in Indonesia and the enhanced role of the National Shariah Board, to set out the current state of the market including opportunities for foreign investment and to trace the roots of the industry in the country with the world’s largest Muslim population.

New stress test rules for Islamic financial institutions

On 19 November 2014, the Indonesian Financial Services Authority (OJK) issued new rules regarding the development of Islamic finance in the country. This followed an August 2014 initiative to encourage coordination in Islamic finance among government bodies and the private sector in order to help Islamic banks navigate a range of local and federal regulati...