Islamic corporate finance has immense untapped potential in Indonesia as the world’s largest Muslim majority country and in light of the on-going positive performance of the country’s maturing private and public sector institutions. An unrelenting wave of activity is taking place as Indonesian corporations outgrow their existing financing structures in their drive to expand and are turning to Islamic corporate finance as a means of growing in partnership through the profit sharing mechanism.

Adapting to the current corporate finance needs of Indonesian companies, Bank Muamalat has accelerated its corporate lending activities through establishing strategic alliances to strengthen its lending capacity as well as enhancing its internal risk management and management structure. The bank has concentrated its human capital resources on niche, high growth business sectors to explore high potential but as yet unexploited Islamic corporate finance opportunities. Bank Muamalat’s team of experienced professionals are able to draw on decades of experience and demonstrate dexterity across different Islamic financing principles to advise on optimal financing structures for its clients.

This specialised approach has seen corporate lending increase by 147% over 2012 and reduced Non Performing Financing to 1.17% from 2.54%. The bank is also supporting projects through its Islamic corporate finance division that will play a central role in Indonesia’s future development within renewable energy projects such as mini hydro power plants. To cater to larger scale Islamic finance opportunities, Bank Muamalat collaborates with other Islamic finance institutions to offer syndicated loans and effectively manage the risk with syndicated financing increasing from 890 billion RP in 2011 to 1,279 billion in 2012.