Islamic Finance

Snail's pace: Indonesia's Islamic banks market share grew 1.17% last five years

BY Yosi Winosa

04 Mar 2021

Infographic

For all its plans to drive the Islamic economy forward, the market share by assets of Indonesia's Islamic commercial banks grew only 1.17% from 2016 to 2020.

The good news is that growth accelerated last year. Assets of standalone Islamic commercial banks and Islamic windows grew by 13.23% to 593,948 billion rupiah ($41.58 billion) last year, according to data from the Financial Services Authority (OJK).

This was higher than the 9.9% growth in 2019 when assets reached 524,564 billion rupiah from 477,327 billion rupiah.

However, the market share of total Islamic financial assets is higher: they reached 1,802.86 trillion rupiah at the end of 2020, for a market share of 9.89%. This includes assets from the different sectors: banking, non-banking, capital market and mutual funds ex-shares.

tags:

Islamic banking