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Delhi, New Delhi, India, 2008/07/09 - The Sharia banking industry of Indonesia is expected to grow 52% by 2010 due to low penetration, improvement in regulatory framework, large Muslim population and lending to SMEs.
The market research firm RNCOS, in its new market analysis, “Sharia Banking System in Indonesia”, has found that the Indonesian Sharia banking market is expected to grow at a CAGR of around 52% from 2008 to 2010.
The report says that a large Muslim population, low penetration of Sharia banking and improvement in regulatory framework will drive the Sharia banking industry in Indonesia to cross Rp 119 Trillion by 2010.
As part of its efforts to support the Sharia banking industry in the county, the Central Bank of Indonesia is following a blueprint that is aimed at strengthening the Islamic banking industry by 2015, says the report. As per the blueprint, the industry development will be focused on increasing the efficiency of the Islamic banking, integrating the Islamic banking into Islamic financial industry, and conforming to global Islamic banking standards. With this development strategy, along with the revival of the Islamic religion that is popularizing the Sharia banking products in the country, the sector will see concrete growth in near future.
Amidst the rising popularity of Sharia banking in Indonesia, says the research report, the demand for Sharia financing will surge at an expected CAGR of more than 51% from 2008 to 2010. The demand of Sharia financing will be driven by lending to SMEs (Small & Medium Enterprises), which will be able to increase and meet their working capital requirements without compromising on their own ethical values.
“Sharia Banking System in Indonesia” is an extensive and in-depth analysis that enables clients to understand the Islamic banking industry in the Southeast Asia country of Indonesia. The RNCOS research provides strategic insight into the banking industry in Indonesia and helps clients to identify the growth opportunities in the market.
The report thoroughly studies the Sharia banking industry and gives forecast on various important parameters of the industry, including disposable income, deposits with Sharia banks and financing by Sharia banks.
RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.