Sharia Banking System in Indonesia

Publication Date	April 2008
Publisher	RNCOS
Product Type	Report
Pages	55
ISBN Number	not applicable
Product Code	RCS00407

Price

£510.00
approximately: $1,000 | €647

PDF

PRINT £610 ($1,200 | €776)

CD-ROM £610 ($1,200 | €776)

Order above formats by FAX

Summary

The Sharia banking industry is developing rapidly worldwide. While it makes sense for global financial institutions to foster growth, exploit the opportunities offered by the Sharia banking market, and keep themselves regularly updated against the status of Sharia banking market in some of the emergent countries, it is worthwhile to keep eyes on developments in Sharia banking markets. Keeping the same fact in mind, RNCOS decided to research on one of the fastest growing Sharia banking destinations - Indonesia - and launched a report, "Sharia Banking System in Indonesia". The report gives an extensive research and in-depth analysis on the Sharia banking market in Indonesia and helps clients to analyze the opportunities being opened by the market. Based on this analysis, the report gives a future forecast of the market intended as a rough guide to the direction in which the market is likely to move.

Key Findings

Sharia banking market is expected to see huge growth at a CAGR of about 52% during 2008-2010.
Growing Sharia banking in Indonesia will offer ample opportunities to Sharia financial cards and Sukuk (Islamic Bonds) market in coming few years.
There will be vast opportunities for Small & Medium Enterprises as Sharia bankers are aggressively targeting this segment.
In terms of financing and deposits, the Indonesian Sharia banking market is expected to see phenomenal growth in coming years.

Key Issues & Facts Analyzed

What is Sharia banking and how is it different from conventional banking?
What is the present status of the Sharia banking in Indonesia?
What are the factors which are driving Sharia banking in Indonesia?
What is the future of Sharia banking in terms of assets, financing and deposits?
What are the future growth prospects?
What are the challenges for the growth of Sharia banking in Indonesia?
Who are the major players in the Indonesian Sharia banking market?

Key Players

This section provides business overview and key financials of top players in the Sharia banking market of Indonesia, including Bank Muamalat Indonesia, Bank Danamon Sharia and HSBC Amanah Sharia.

Research Methodology Used

Information Sources

Information has been sourced from books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to over 3000 paid databases.

Analysis Methods

The analysis methods include ratio analysis, historical trend analysis, and linear regression analysis using software tools, judgmental forecasting, and cause and effect analysis.

Content

1. Analyst View
2. Concept of Sharia Banking
3. Sharia Banking in Indonesia - An Overview
4. Factors Making Sharia Banking Market Attractive
- 4.1 Large Muslim Population
- 4.2 Low Penetration
- 4.3 Growing Disposable Income
- 4.4 Regulatory Development & Government Support
  - 4.4.1 Compliance to Sharia Principles
  - 4.4.2 Prudential Guidelines
  - 4.4.3 Operational Efficiency & Competitiveness
  - 4.4.4 Pilot Project Implementation
  - 4.4.5 Improving Competence of HR Personnel
  - 4.4.6 Social Role of Sharia Banks
5. Market Performance
- 5.1 Sharia Commercial Banks
  - 5.1.1 By Assets
  - 5.1.2 By Financing
  - 5.1.3 By Deposits
    - 5.1.3.1 Wadiah Demand Deposits
    - 5.1.3.2 Mudharabah Time Deposits
    - 5.1.3.3 Mudharabah Saving Deposits
- 5.2 Sharia Business Units
  - 5.2.1 By Assets
  - 5.2.2 By Financing
  - 5.2.3 By Deposits
    - 5.2.3.1 Wadiah Demand Deposits
    - 5.2.3.2 Mudharabah Time Deposits
    - 5.2.3.3 Mudharabah Saving Deposits
- 5.3 Sharia Rural Banks (BPRS)
  - 5.3.1 By Financing
    - 5.3.1.1 Economic Sector
    - 5.3.1.2 Category of Use
    - 5.3.1.3 Category of Financing
  - 5.3.2 By Deposits
    - 5.3.2.1 Wadiah Saving Deposits
    - 5.3.2.2 Mudharabah Saving Deposits
    - 5.3.2.3 Mudharabah Deposits
6. Sharia Banking Market - Future Outlook (2008-2010)
- 6.1 Assets
- 6.2 Financing
- 6.3 Deposits
7. Future Growth Prospects
- 7.1 Small & Medium Enterprises
- 7.2 Sukuk (Islamic Bonds)
- 7.3 Sharia Cards
- 7.4 Microfinance Market
- 7.5 Training Institutes & Advertising Media
8. Industry Roadblocks
- 8.1 Product Understanding
- 8.2 Financing through Profit-sharing Schemes
- 8.3 Supporting Institutions
9. Key Players
- 9.1 Bank Muamalat Indonesia
- 9.2 Bank Danamon Sharia
- 9.3 HSBC Amanah Sharia
List of Figures:
- Figure 3-1: Indonesia - Assets* of Sharia Banks (in Trillion Rp), 2002-2007E
- Figure 4-1: Indonesia - Muslim Population* (in Million), 2002-2007E
- Figure 4-2: Indonesia - Forecast for Muslim Population* (in Million), 2008-2012
- Figure 4-3: Indonesia - Share of Sharia Banks in National Banking Assets (%), Oct 2007
- Figure 4-4: Indonesia - Per Head Disposable Income (in US$), 2002-2007E
- Figure 4-5: Indonesia - Forecast for Per Head Disposable Income (in US$), 2008-2012
- Figure 4-6: Indonesia - Roadmap for Sharia Banks (2002 to 2015)
- Figure 5-1: Indonesia - Deposits with Sharia Banks (Individual & Corporate in %), 2006
- Figure 5-2: Indonesia - Assets of Sharia Commercial Banks (in Trillion Rp), 2002-2006 & Oct 2007
- Figure 5-3: Indonesia - Financing* by Sharia Commercial Banks (in Trillion Rp), 2002-2006 & Oct 2007
- Figure 5-4: Indonesia - Wadiah Demand Deposits* with Sharia Commercial Banks (in Billion Rp), 2002-2006 & Oct 2007
- Figure 5-5: Indonesia - Mudharabah Time Deposits* with Sharia Commercial Banks (in Billion Rp), 2002-2006 & Oct 2007
- Figure 5-6: Indonesia - Mudharabah Savings Deposits* with Sharia Commercial Banks (in Billion Rp), 2002-2006 & Oct 2007
- Figure 5-7: Indonesia - Assets of Sharia Business Units (in Trillion Rp), 2002-2006 & Oct 2007
- Figure 5-8: Indonesia - Financing* by Sharia Business Units (in Trillion Rp), 2002-2006 & Oct 2007
- Figure 5-9: Indonesia - Wadiah Demand Deposits* with Sharia Business Units (in Billion Rp), 2002-2006 & Oct 2007
- Figure 5-10: Indonesia - Mudharabah Time Deposits* with Sharia Business Units (in Billion Rp), 2002-2006 & Oct 2007
- Figure 5-11: Indonesia - Mudharabah Savings Deposits* with Sharia Business Units (in Billion Rp), 2002-2006 & Oct 2007
- Figure 5-12: Indonesia - Share of Sharia Rural Banks in National Rural Banking Assets (%), 2006
- Figure 5-13: Indonesia - Financing by Sharia Rural Banks (in Billion Rp), 2005 & 2006
- Figure 5-14: Indonesia - Sharia Rural Bank Financing by Economic Sector (%), 2006
- Figure 5-15: Indonesia - Sharia Rural Bank Financing by Category of Use (%), 2006
- Figure 5-16: Indonesia - Sharia Rural Banks by Category of Financing (%), 2006
- Figure 5-17: Indonesia - Deposits with Sharia Rural Banks (in Billion Rp), 2005 & 2006
- Figure 5-18: Indonesia - Wadiah Saving Deposits with Sharia Rural Banks (in Billion Rp), 2005 & 2006
- Figure 5-19: Indonesia - Mudharabah Saving Deposits with Sharia Rural Banks (in Billion Rp), 2005 & 2006
- Figure 5-20: Indonesia - Mudharabah Deposits with Sharia Rural Banks (in Billion Rp), 2005 & 2006
- Figure 6-1: Indonesia - Forecast for Assets* of Sharia Banks (in Trillion Rp), 2008-2010
- Figure 6-2: Indonesia - Forecast for Financing* by Sharia Banks (in Trillion Rp), 2008-2010
- Figure 6-3: Indonesia - Forecast for Deposits* with Sharia Banks (in Trillion Rp), 2008-2010
List of Tables:
- Table 2-1: Difference between Conventional & Sharia Banks
- Table 3-1: Indonesia - Structure of Sharia Banking (2002-2006)
- Table 9-1: Bank Muamalat Indonesia - Key Financials (in Billion Rp), 2002-2006
- Table 9-2: Bank Danamon Sharia - Key Financials (in Billion Rp), Sep 2007