IslamicFinance.de

The Indonesian government has launched a national master plan to develop its Islamic finance industry. Indonesian Islamic banks hold roughly 5% of total banking assets, compared with more than 20% in neighbouring Malaysia. According to Farrukh Raza, managing director of IFAAS, an Islamic finance consultancy which designed the 10-year master plan, the government would increase its use of Islamic debt instruments to as much as 50% of total issuance in 10 years time. Indonesia's pilgrims' fund would also see the establishment of a dedicated asset management arm to implement a more rigorous investment policy and attract external fund managers.