Sign up | Log in



Home  >>   Daily News  >>   Indonesia  News  >>   Finance  >>   Indonesia's Islamic bank assets to jump
NEWS UPDATES Asean Affairs        14  February 2011

Indonesia's Islamic bank assets to jump

Related Stories

February 7, 2011
Indonesian banks climb in global rankings

January 25, 2011
Indonesia's Bank Mandiri to raise $1.3 Billion

January 24, 2011
Indo banks should earn less

January 4, 2011
Bank Indonesia may hold key rate as inflation hits 7 percent

November 30, 2010
Bank Indonesia may rein in hot money

The assets of the nation's Islamic banks are expected to grow by half this year as people in the world's largest Muslim-majority state increasingly turn to the sector for their financial needs, according to a report by the central bank released over the weekend.

"If Indonesia's economy grows at a decent pace, the assets of Islamic banks will increase by 55 percent,'' said Mulya Siregar, director of Shariah finance at Bank Indonesia.

"With total assets exceeding Rp 100 trillion ($11.2 billion) last year, that should become a solid base for Indonesia's Islamic banks, which now have more than six million customers and employ more than 20,000 workers."

The central bank forecast that Shariah assets would reach Rp 155 trillion by the end of this year, after rising 47 percent to Rp 100.26 trillion last year, with Rp 2.74 trillion of that held by rural banks, the report said.

Indonesia's economy, which grew 6.1 percent last year, is forecast to expand by 6.5 percent this year, Bank Indonesia said.

Islamic banking has emerged as one of the most rapidly expanding sectors in the nation's economy and is expected to play a significant role in the coming years, the report said. Lending by such institutions is expected to grow by 40 percent this year, the same pace it recorded last year, Mulya said.

Although Indonesia's population of about 240 million people is 90 percent Muslim, Shariah banking only accounts for about 3.5 percent of the total finance sector, providing plenty of room for growth.

Shariah finance complies with Islam's prohibition on charging interest, with gains coming through a system of profit sharing.

The sector emerged largely unscathed from the global financial crisis due to its strict rules against investing in risky instruments, such as the derivatives, that saw Wall Street financial giants stumble.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    14  February 2011 Subsribe Now !
• Indonesia's Islamic bank assets to jump
Subcribe: Asean Affairs Global Magazine
• Indonesia looks at Garuda's poor IPO Asean Affairs Premium
• Philippine budget deficit swells in December
• Philippines considers more mining perks  
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• New bridge to span Mekong
• Thai telecoms deal under scrutiny
• Transparency vital for Vietnamese investment
• Vietnam currency devaluation spurs stocks
Asean Analysis    14   February 2011 Advertise Your Brand
• Spies in Thailand Sponsor Our Events
Asean Stock Watch    14  February 2011
• ASEAN Markets to add 2% Plus this week
Global News Impacting Asia    17 November 2010
• Bank of America sees Asian inflation
• Lloyd’s increases insurance push in Malaysia
• Wells Fargo analyst on euro
• Obama’s visit to Asia

ASEAN NEWS UPDATES      Updated: 04 January 2011

• Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand