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Improving the quality of the growth of the Indonesian Islamic banking industry

The year 2014 marked the slowing down in the growth of the Indonesian Islamic banking industry. Based on fi gures from the Indonesian Financial Services Authority (OJK), the total Islamic banking assets (fully-fl edged Islamic commercial banks and Islamic windows of commercial banks) were at IDR272.3 trillion (US$21.78 billion) which translated to a growth of around 12.4% compared to its 2013 fi gure, which was at IDR242.3 trillion (US$19.38 billion).

In January 2015, the fi gure dropped again to IDR263.5 trillion (US$21.08 billion), showing that some of the funds placement in December 2014 were just temporary. FAROUK ABDULLAH ALWYNI provides an overview of the Indonesian Islamic banking industry. Table

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