IslamicFinance.de

Indonesian financial authorities are considering to ease foreign ownership limits for local Islamic banks and to promote new sharia-compliant financial tools in an effort to make the Islamic finance industry more attractive to foreign investors and the Indonesian population. The current low market share of Islamic banking in Indonesia in combination with the recent high growth pace and government support implies that there is plenty of room for further growth of the Islamic banking industry in Indonesia. In this context, Indonesia’s Financial Services Authority (OJK) developed and launched a five-year roadmap earlier this year, which aims to triple the market share of Islamic banks to 15 percent by 2023. The OJK also announced that it considers to ease ceilings on foreign ownership for Islamic banks.