Islamic Finance In Indonesia

As the most populous Muslim- majority country in the world, Indonesia would seem an obvious target for investment in Islamic finance. However, in a country of 255 million people (210 million being Muslim); only 36% of the population have a bank account. Regardless of this, Islamic banking assets have nearly tripled in value from US$8 billion in 2010 to US$22 billion in 2014, making this rapidly growing sector an exciting prospect.

Currently, Indonesia's entire banking system is only worth about 51% of its GDP, compared to 150% in Malaysia and 350% in China. The Indonesian Government, along with the financial services authority of Indonesia (OJK) have recognised the market potential eager to develop market, with a 5 year plan to double the market share of Islamic Banks to 11% by 2020.