Publications

The members of Indonesia’s new Hajj Fund Management Agency, or known by its Indonesian name as Badan Pengelola Keuangan Haji (BPKH), were inaugurated by the president of the Republic of Indonesia, Joko Widodo, on the 26th July 2017, and immediately commenced work on the management of Indonesia’s Hajj funds. Previously,... read more

Up to May 2017, there have been new issuances of corporate Sukuk amounting to IDR5.15 trilion (US$386.49 million). As shown in table 1, this performance in the first half of 2017 showed a major improvement compared with the performance in the first half 2016 when there was no issuance of... read more

Indonesia’s Islamic fi nance landscape is developing very slowly. One of the country’s biggest weaknesses is in its corporate Islamic capital market. When looking at raising funds, companies overwhelmingly turn to conventional bonds.... read more

Seven Indonesian Islamic regional banks have approved financing via syndication for the development of West Java International Airport in Kertajati, Indonesia. The beneficiary of this syndicated financing is the West Java Regional Government (Pemprov Jabar) majority-owned company, Bandara Internasional Jawa Barat (BIJB). BIJB was set up by Pemprov Jabar in... read more

Government Sukuk have been the leading instruments of the Indonesian Islamic fi nance industry since 2015. According to the Ministry of Finance (MoF)’s statistics, total government Sukuk issued as at the 29th March 2017 stood at IDR664.53 trillion (US$49.91 billion), with global Sukuk (denominated in the US dollar) accounting for... read more

One important component of the Indonesian Islamic finance industry is a group of entities called Islamic non-bank financial institutions (NBFIs). NBFIs, according to the classification made by Indonesia’s Financial Services Authority (OJK), consist of insurance companies (life, general, and reinsurance), financing companies or known also as multifinance companies, venture capital... read more

The CEO of AIC, Farouk Abdullah Alwyni, is listed in the list of ISLAMICA500 (www.Islamica500.com). This list is a collection of individuals considered influential in the development of Islamic Economy or as the title of this guide books says "The 500 who make the Islamic Economy. The Islamica500 is published by The Isfin Institute... read more

By the end of 2016, Indonesia has become the largest issuer of global sovereign Sukuk with eight issuances amounting to US$10.15 billion alongside other major issuers like the UAE (Dubai) (US$7.07 billion), Malaysia (US$6.85 billion), Turkey (US$4.87 billion) and Qatar (US$4.7 billion). By Farouk Abdullah Alwyni... read more

The growth of market capitalization of Shariah compliant stocks up until November 2016 was very favorable. The market capitalization of two Islamic indices in the country, the Jakarta Islamic Index (JII) and the Indonesian Shariah Equity Index (ISSI in its Indonesian abbreviation), both grew twice as fast as the market capitalization... read more

Since the enactment of the Law No.19/2008 relating to government Sukuk, the government of Indonesia through the Ministry of Finance (MoF) has been active in issuing Sukuk. Currently, there are seven types of the government Sukuk with tenors ranging from six months to over 10 years. There are tradable and non-tradable Sukuk through private placement. There are also retail... read more

As part of its aggressive drive to grow the Islamic mutual fund industry, Indonesia’s Financial Services Authority (OJK) is making it mandatory for investment managers to carve out a dedicated Shariah unit, a rule which could be implemented as early as 2017. VINEETA TAN however finds out that market observers... read more

Similar to the year of 2015, the growth of the Islamic banking industry in Indonesia is still continuing on a decelerating trend. In 2014, the Islamic banking industry grew 12.4%. The growth then dipped in 2015 to 8.8%. Contrary to the growth of the Islamic banking industry, the year 2016 saw... read more

The Indonesian Islamic banking industry consists of 12 fully-fledged Islamic commercial banks and 22 Islamic windows of conventional banks. In addition, there are also 163 rural banks whose assets account for just around 2.7% of the total Islamic banking industry. Considering the many small sizes of Islamic rural banks, when discussing about the Islamic banking industry, the discussions tend to refer only... read more

Based on the latest available data from Indonesia’s Financial Services Authority (OJK), the Shariah insurance industry constitutes the largest industry among Shariah non-bank financial institutions (NBFIs). As of July 2016, there are 10 fully-fledged Shariah insurance companies and 46 Shariah units of conventional insurance companies with total assets amounting to IDR31.76... read more

The Jakarta Islamic Index (JII) consists of 30 Shariah compliant shares that have the largest market capitalization and are the most liquid. In general, members of this index are made up of companies whose core business is in the infrastructure, consumer and commodity sectors. The index is reviewed every six months in the months of January and... read more

Although the market share of Islamic banking at the end of 2015 as still relatively small at around 5%, the industry registered faster growth rate compared to the conventional banking industry. Total assets of the Indonesian Islamic banking industry grew at a CAGR of 27% between 2009 and 2014, while... read more

Maybank Indonesia has issued its ‘Shelf Registration Sukuk Mudarabah I Maybank Indonesia Tranche II’ facility (Sukuk Mudarabah) amounting to IDR700 billion (US$53.34 million). The offer period for this Sukuk Mudarabah was from the 6th to the 7th June 2016 and the listing on the Indonesian Stock Exchange was on the... read more

Sukuk issuance in Indonesia’s corporate sector remains a relatively quiet space, compared with the bustling government’s sovereign issuance, which is often under the spotlight. The Republic’s marketplace, however, was given a slight jolt last month when Bank Syariah Mandiri announced plans to issue Sukuk worth IDR1 trillion (US$74.4 million) later... read more

The new Islamic cooperative association in Indonesia, Insan Koperasi Syariah Indonesia, or simply known as iKOSINDO, was officially launched on the 17th May 2016 during its first summit in Yogyakarta, Indonesia. This new association, grouping mostly Islamic cooperatives and Islamic microfinancing entities (or known widely here as Baitul Mal Wat... read more

Indonesia has the world’s largest Muslim population and yet it still lags behind in terms of Islamic fi nance when compared with its neighbor Malaysia and the GCC countries. In this article, FAROUK ABDULLAH ALWYNI reviews the growth of the country’s Islamic fi nance industry in the last fi ve years from... read more