Savings drive growth of Islamic banking in Indonesia
Indonesia is expected to to have a natural fit with Islamic banking, finance and insurance, especially because of the mobilization of domestic savings through Islamic banking.
But it seems that the latest statistics on the sector demonstrate that Indonesia has a long way to go in emulating the success of its neighbor, Malaysia.
For Indonesia, the global sukuk market in particular evolved into an alternative source of funding for infrastructure and other investments. The latest incursion of the Indonesian Ministry of Finance into the Islamic capital market is planned for August 2011 when the government is due to launch 1 trillion rupiah of debut Islamic treasury bills with a six-month tenor.