In Jakarta, financial help comes via Islam

FRANCE 24: Like many emerging countries, Indonesia has not been spared by the current financial crisis. The Jakarta stock exchange has lost 50 percent of its value since the start of 2008. It’s in light of this that the Indonesian vice-president recently called on his fellow citizens to turn to Islamic banks, which have seen exponential growth since the end of the 1990s.

Based on rules set down by Sharia law, Islamic banks don’t charge interest and don’t associate with businesses linked to alcohol, tobacco, gambling or pornography. They only work with clients that are prepared to share the risks – and it’s in this way that a number of customers have been won over. But are Islamic banks the only ones not to succumb to the effects of the financial crisis?

The industry really took off in Malaysia and Indonesia is following suit. With Islamic banks growing at twice the rate of traditional banks, the hope is that Western countries will soon be signing up to them too.