Indonesia can fully facilitate its plans for enhancing infrastructure if it were to utilise Islamic financial instruments which can help to further boost the economy and increase economic stability in the country.

Standard and Poors the leading company stated in a report that Islamic finance was the perfect option for Indonesia in materializing its infrastructure plans.S&P credit analyst, Allan Redimerio, stated, "We believe Indonesia can emulate Malaysia's success thus far in utilizing Islamic finance for infrastructure development. This is due to Indonesia's large infrastructure development needs, the government’s willingness to attract private capital to fund these investments, and the rising demand for investable assets of a growing domestic Islamic finance market."

Shares in Indonesia’s Bumi Resources, Asia’s biggest thermal coal exporter, fell more than 15 percent to a three-year low at one point earlier this week after the company reported a net loss for the first half of the year.

"Questions now remain on the core profitability for Bumi, given the first half 2012 interest bill of $324 million outweighed $239 million of operating income...with prices likely to trend lower in the second half of 2012 and limited ability to lower the costs," said Riaz Hyder at Macquarie in a report on Bumi.

There is no better time for Indonesia to utilise Islamic finance as the industry is excelling in many sectors especially in Sukuk Islamic bonds.

Global demand for securities that comply with Islamic Sharia law will triple to $900 billion (£562bn) over the next five years, Ernst & Young said.

The big four accountant reckons there will be a dramatic rise in demand for sukuks among Islamic financial institutions as well as fund managers and high net worth individuals.

Sukuk holders can receive a share in the ownership of assets developed using the funds raised by issuers and the revenues generated, rather than interest.

Ernst & Young said the growth in demand is good news for governments and corporates seeking new avenues of funding. It noted that Malaysia has "successfully and regularly" tapped into the sukuk market to support its infrastructure development programme.