Indonesian Islamic Banking Gaining from Financial Crisis

Delhi, India (PressExposure) March 03, 2009 -- According to a recent research report “Indonesian Islamic Banking Outlook to 2013” by RNCOS, a leading research firm, with low penetration and growing interest of conventional banks into Sharia-compliant banking services (Islamic banking), the Islamic banking industry (in terms of assets) in Indonesia would continue to grow at a CAGR of over 50% between 2009 and 2012.

As per the research, Islamic banking in Indonesia is at its early stages of developments. It still makes up just about 2% of conventional banking system in the country. However, Bank of Indonesia (central bank) has set a target to push it to 5% by 2010 end. Thus, the country provides ample opportunities for new entrants in the system. Recently, two more conventional banks have converted into Islamic banks, BRI Syariah and Bukopin Syariah. Further, the industry expects at least five more by 2009 end - Panin-Hafra, BCA-UIC, Victoria, Maybank Indonesia and BNI Syariah.

The report also noted that the financial crisis has had no negative impact on the development of Sharia banking in the country. While the conventional financial system is reeling under the pressure of global financial crisis, the Sharia banking industry of Indonesia is benefitting from it and expects to continue its fast-paced growth in the years to come. This optimistic view is based on its very nature (avoid involvement of interest rates), and a healthy growth in lending in the recent months despite financial crisis.

“Indonesian Islamic Banking Outlook to 2013” provides a comprehensive research and prudent analysis on the Islamic banking in Indonesia. This extensive research will help the clients to identify the market trends and evaluate the leading-edge opportunities critical to the success of the Islamic banking market in the country. This study gives an overview on the various factors driving the banking industry, together with the forces that are blocking the growth of the industry.

This research supplements the past and current information on the Indonesia Islamic banking market with forecast on various important industry aspects, including Muslim population, disposable income, Sharia financing and deposits.

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Press Release Submitted On: March 03, 2009 at 5:36 am
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