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To further elevate the development of the country’s Islamic finance landscape, the National
Committee for Islamic Finance (Komite Nasional Keuangan Syariah (KNKS)), which has four
important roles described in Figure 4.9, was established in July 2017. Chaired by the President,
this high-level committee will review the current policies, regulations and roadmaps in
strengthening the inclusion of Islamic finance, to promote the economic growth of Indonesia.
This “top down” approach will necessitate the involvement of all market stakeholders, which is
crucial in moving Indonesia’s Islamic finance industry to its next phase of development. The
mandate given is to lead the country in creating an Islamic economic and financial system that
will benefit all of society.
Figure 4.9: Four Important Roles of the KNKS
Source: Masterplan for Indonesian Islamic Finance Architecture (December 2014)
Figure 4.10 outlines key initiatives undertaken by the Indonesian’s government and
authorities to develop a conducive landscape for ICM.
Figure 4.10: Regulatory and Fiscal Initiatives to Develop the ICM (1999-2016)
Source: Thomson Reuters & IRTI (2016)