Finance Companies Based on Syariah Principles

The Capital Market and Financial Institutions Supervisory Agency has issued a package of two regulations relating to the activities of financial companies and financial contracts based on Syariah principles. The Regulations, No. Per-03/BL/2007 and No. Per-04/BL/2007, have been issued to facilitate the strengthening and broadening of the bases and types of Syariah-based financial products available. It is expected that the Regulations will serve a two-fold purpose of satisfying the demand from the community for these types of products and simultaneously allow financial companies to expand their sources of financing.