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Indonesia’s ICM has been under development for the last 2 decades, due to the government’s
concerted efforts to elevate the significance of Islamic finance and the ICM. Strategic action
plans defined in the Capital Market Master Plan (2005-2009) and Capital Market Master Plan
(2010-2014)―as highlighted in Boxes 4.7 and 4.8 respectively, had set in motion the
establishment of the necessary infrastructure for the inclusive development of Islamic finance.
Box 4.7: Indonesian Capital Market Master Plan (2005-2009)
This master plan is a continuation of the
Indonesian Capital Market Blue Print (2000-
2004) that had provided similar guidelines for
the period of 2000 to 2004. The strategic
planning in this roadmap had been envisaged
to create a strong and globally competitive
Indonesian capital market capable of
spearheading the development of the national
economy.
Priority targets:
1. Strengthening capital market
supervision.
2. Strengthening legal certainty in the
capital markets.
3. Enhancing the roles and quality of capital
market participants.
4. Expanding alternative investments and
financing in the capital markets.
5. Developing the Shariah-based capital
markets.
Specific strategies and action plans to develop
Indonesia’s Shariah-based capital markets:
1. Developing a legal framework to facilitate the
development of Shariah-based capital markets.
 Regulate the implementation of Shariah
principles.
 Set up accounting standards related to the
implementation of Shariah principles.
 Set empowerment programmes for market
participants (Shariah capital market experts)
in relation to the development of Shariah-
based capital markets.
2. Encouraging the development of Shariah-based
products.
 Socialising the implementation of Shariah
principles in the capital markets to enhance
market participants’ knowledge.
 Developing existing Shariah-based products.
 Creating new Shariah-based products.
 Conducting joint research on the development
of Shariah-based products among the
regulators, i.e. Nasional Shariah Board –
Indonesian Ulemas Council (DSN-MUI in
Indonesian acronym) and market participants.
Source: Indonesian Capital Market Supervisory Agency (Bapepam in Indonesian acronym), Ministry of Finance of
the Republic of Indonesia (MOF)
Note: In 2011, Badan Pengawas Pasar Modal (Bapepam) was changed to Otoritas Jasa Keuangan (OJK).