The Jakarta Post
The Indonesian government needs to exempt all transactions in the Islamic banking system from taxes in order to spur its development in the country, a world’s major player in the industry says.
“I think, for the Islamic finance here to grow well, the government should provide tax neutrality to any transaction made in Islamic finance,” Badlisyah Abdul Ghani, CEO of CIMB Islamic Berhad, said on Wednesday.
He said that Indonesia, which is the world’s largest Muslim country in term of population and the Southeast Asia’s largest economy, boasted a huge potential to become the biggest market for Islamic financial products.
He said that Indonesia’s law on sukuk and sharia banking, which had among others allowed government to sell Islamic bonds and banks to establish their own Islamic banking arms, had been showing to the financial world that it was ve...