Principal in second Indonesian pension fund deal

Indonesian firms are starting to break through with innovative ways of managing shari`a-compliant corporate pension funds to enable employers to concentrate on business. Principal Indonesia, a subsidiary of the US-based Principal Financial Group (a Fortune 500 companies corporation) has gained Indonesian Ministry of Finance approval to manage the Employees' Pension Fund of Bank Syariah Mandiri, with assets of Rupiah 632 million. Principal Indonesia is bullish about Islamic finance in Indonesia, since the majority of its 200 million population are Muslims, and the President Director feels that shariah investments will strengthen the Indonesian economy. Bank Syariah Mandiri, with 12 branches nationwide and opening 6 more, is introducing 500 ATM's as well as a new saving product allowing Muslim customers to save for the Umrah (lesser) pilgrimage. (A similar scheme in Malaysia now owns assets in excess of RM8bn.)