Indonesia's Financial Services Authority has reviewed its investment guideline for investment managers of Sharia mutual funds, Sharia insurance and investors intending to invest in Sharia securities portfolios.

Indonesia's Financial Services Authority (OJK) has reviewed its investment guideline, known as the 'Sharia securities list,' for investment managers of Sharia mutual funds, Sharia insurance and investors intending to invest in Sharia securities portfolios. It has also released a guideline for Sharia index providers such as the Indonesia Stock Exchange which issues Jakarta Islamic Index and Indonesia Sharia Stock Index.

There are 322 types of security on the list and 584 issuers and public companies, 28 of the companies having joined this year so far. At the same time, the Directorate of the Sharia Capital Market is drawing up a so-called 'road map' for the market's medium-term development. The process of consultation, which involves a kaleidoscope of focus groups, has begun. The directorate is also overhauling its regulations, especially Reg No IX.A.13 which governs the issuance of Sharia securities, and will finish sometime this year. On the agenda is the simplification of the registration statement document, new rules for disclosures associated with sukuk, the Islamic equivalent of bonds, new rules for sukuk trustee contracts, the completion of a regulation to govern types of Sharia mutual funds, more choices for Sharia mutual fund portfolios, and the completion of a regulation to do with Sharia asset-backed securities.

Islamic business takes up almost 5% of Indonesia's banking business. The OJK says that the country has 11 fully-fledged Islamic banks and 23 Islamic windows operated by conventional banks. Their combined Islamic banking assets grew by 24% to 242 trillion rupiah ($21.4 billion) last year.