REPUBLIKA.CO.ID, JAKARTA – Bank Indonesia (BI) predicts the market share of Islamic bank will reach 15 percent in a decade by maintaining the average development of Islamic banking in 40 percent a year, the Deputy Governor of BI, Halim Alamsyah, said on Wednesday in National Summit of Indonesian Islamic Banking Association (Asbisindo) in Jakarta.
The average development of Islamic bank in the last five years reached 40 percent with market share in almost five percent. “The development is 20 percent faster than commercial banking. Thus on the next five years, the market share of Islamic banking will reach 15 percent,” he said.
The development can be boost by diversifying the products of Islamic banking. Moreover, some incentive in taxes and market penetration are already given. “If supported by socialization, I believe the development of the industry will be faster,” he said.
Yet, Alamsyah said, Islamic banking industry would face three challenges ahead, coming from internal, such as the fulfillment of human resources, products and service innovation, and socialization and education programs.
BI will establish a working group on products innovation to tackle the challenges. Alamsyah admits Islamic banking products have not yet widely known. One of the products is Griya Financing (KPR). The contract actually fits the middle.
Meanwhile, the external challenge comes from Financial Service Authority (OJK). OJK law does not mention about Islamic financial industry development. The Chairman of Asbisindo, A Riawan Amin, said the Islamic spirit should be contained in every structure of OJK. “If they do not have Islamic spirit, it would not be effective then,” Amin said. N