Takaful News - Indonesia: Jakarta to Sell First-ever Sukuk

Source: Middle East Insurance Review | Mar 2007

Indonesia plans to sell its first Islamic bonds, or sukuk, in the domestic market this year, as soon as a law regulating the debt issue is passed by Parliament.

Mr Rahmat Waluyanto, the Finance Ministry Treasury Director General, said: “First, we will sell it in the domestic market. Many institutional investors are likely to be interested such as pension funds and insurance firms.”

Although Indonesia is the world’s most populous Muslim country, its Islamic finance industry is undeveloped in contrast to that of other Muslim countries such as Malaysia. This has been attributed to the lack of regulatory reforms.

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