Jakarta rolls out plan to develop Islamic finance

Jakarta

THE Indonesian government has launched a national master plan to develop its Islamic finance industry, the latest effort aimed at awakening what is still a niche sector in the world's most populous Muslim country.

Islamic finance was introduced in South-east Asia's largest economy more than two decades ago but it has managed only modest gains in the country of 250 million people despite multiple regulatory efforts and grassroots initiatives.

Indonesian Islamic banks hold roughly 5 per cent of total banking assets compared with more than 20 per cent in neighbouring Malaysia and about a third o…