Indonesia’s Islamic insurers are starting to favour gold over bonds amid the fastest inflation in almost two years, seeking to boost returns following a ruling that allows them to invest in the precious metal.
PT Asuransi Takaful Keluarga, the country’s largest Islamic insurer, is looking to cut holdings of short-term shariah- compliant bonds to shift into the commodity, Ernawan Priarto, head of finance and accounting, said in an interview in Jakarta on February 18. Indonesia’s two other takaful operators, PT Jaya Proteksi Takaful and PT Asuransi Syariah Mubarakah, are also considering purchases of gold. (source)
