The Growth of Islamic Finance in Indonesia during the Pandemic

The market share of Islamic financial contributes up to 9.03% per April 2020 to the financial system in Indonesia. It indicates an incline position compared to 2019 by about 8%. The total asset of Islamic finance in Indonesia, exclude Islamic capital is for about IDR 1,496.05 Trillion per April 2020. The breakdown is as follows: the Islamic capital market contributes as the biggest contributor to the Islamic financial asset for about IDR 851.72 Trillion. Followed by Islamic banking and Financial Industry Non-Bank (IKNB) for about IDR 534.86 Trillion and IDR 109.47 Trillion, respectively.

It is quite interesting because Islamic banking used to be the biggest contributor to the Islamic capital market. A significant contribution from the Islamic capital market was driven by the government who issues Sukuk (Islamic bonds). Based on the Islamic bank point of view, the assets are pretty low since it is only 6.07% per April 2020 which comes from 20 Islamic business units (UUS), 14 Islamic conventional banks (BUS), and 163 Islamic credit bank (BPR Syariah). The total assets of Islamic banks are for about IDR 524.86 Trillion per April 2020. Yet, it still shows growth from Islamic banking even though experiencing deceleration.

SAHH

Source:

• bisnis.com