An increasing number of financial institutions from international banks to local specialist players are developing sharia-compliant structured products, offering investors limited downside risk and high returns. But as the uptake for such products increases, so does the pressure of ensuring that they are 100% sharia-friendly.

Indonesia’s finance minister Agus Martowardojo was The Banker ’s Finance Minister of the Year 2012, global and Asia-Pacific. He explains the economic polices behind the country's impressive growth.

Despite being the fourth most populous country in the world, Indonesia's growth story is often overshadowed by that of its Asian peers, China and India. The country's potential has not been lost on the international banking community, however, which is slowly but surely upping its presence in this vast and highly unbanked archipelago.

Policy reforms in Indonesia's banking sector have transformed shareholding structures and foreign investors have scooped up local banks. But further change is needed to enable the country to cope with an anticipated economic explosion, say local bankers. Writer Michelle Price