REPUBLIKA.CO.ID, JAKARTA – Year 2013 will be a challenging year for Islamic industry as regulator drafts stricter regulation for Islamic banking. Spin-off regulation is one of them.

The Analyst of Islamic Economy and founder of Karim Business Consulting (KBC), Adiwarman A Karim, said 2013 would be a year for the development of Islamic industry, instead of the downturn.

"2013 is the year of Islamic insurance," Karim said on Monday at the forum entitled 'Outlook Islamic Economy 2013: Islamic Economic System to Replace the West'.

He explained that Indonesia Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) set minimum capital for insurance company in the amount of 100 billion IDR. For those which cannot fulfil the requirement, they must add their capital or convert to Islamic insurance. The minimum capital for Islamic insurance is only 50 billion IDR.

He added that Islamic Business Unit (UUS) must also prepare to spin off in 2013. Vice President Director of Manulife Insurance Indonesia, Nelly Husnayati, said the company prepared to spin off. It will separate from the central company in 2014.

Manulife Islamic business unit still books a capital of 25 billion USD. With the spin off, Manulife Syariah is ready to add the capital to meet the requirement.

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