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AKARTA: The Financial Services Authority (OJK) has disclosed that four insurance companies are set to enter the sharia finance sector. The four companies are in the process of getting their licenses.

The four companies are PT ACE Life Assurance, PT Maskapai Asuransi Sonwelis, PT Asuansi Parolamas and Kospin Jasa.

According to OJK deputy commissioner Mulya Siregar, PT ACE Life Assurance is seeking a permit for setting up a sharia unit. '€œPT Maskapai Asuransi Sonwelis is also in the process of seeking a permit related to its plan to convert from a conventional bank to a sharia bank,'€ he was quoted as saying by Kompas.com.  

Meanwhile, PT Asuransi Parolamas is seeking a spin-off license related to its eagerness to change the status of its sharia unit to a subsidiary focusing on sharia business. '€œKospin Jasa has applied for a principle license to establish a sharia-based insurance company,'€ he said.  

He said that nationally, the sharia finance sector recorded slow growth in the first quarter of 2014. '€œApart from tight competition, increased bank interest rates have also contributed to the slow growth of sharia business,'€ he said.

'€œThe slowing down of the growth is heavily influenced by the tight competition in the funding market in line with an increase in bank interest rates and the slowing down of the real sector and internal consolidation by several banks,'€ he added.