Indonesia seeking Middle East ’strategic partners’ for state-owned Islamic banks - official
Photo: A teller waits for a customer in a branch of Bank Syariah Mandiri in Jakarta February 17, 2010. Picture taken February 17, 2010. REUTERS/Supri
Indonesia’s government is seeking strategic partners from the Middle East for its state-owned Islamic banks to boost the country’s low level of Shariah-compliant banking assets, Gatot Trihargo, deputy for financial and business services at the ministry of state-owned enterprises told Salaam Gateway.
“There are two ways to increase Islamic banking market share that is currently only about 356.5 trillion Indonesian rupiah ($26.8 billion), or 5.13 percent, of total national banking assets: inject more capital to upgrade more Islamic banks to bank category III (minimum 5 trillion rupiah in assets), or we collaborate with strategic partners in order to get a transfer of knowledge,” said Trihargo.
According to him, collaboration with strategic partners, especially from Middle East countries, is a faster way to boost Indonesia’s Islamic banking assets.
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