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A law that requires insurers in Indonesia to spin-off of their sharia-compliant units is likely to be enacted in 2014, reports Reuters citing Alis Subiyantoro, head of the sharia insurance subdivision at the country's financial services authority.
Mr. Subiyantoro said the law would give insurers three years to comply with requirements to spin-off the units. Full-fledged takaful firms would need to have a minimum capital of 50 billion Indonesian rupiahs ($4.2 million), which could trigger mergers in the takaful market.
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