The year 2014 signifies the stagnation in the growth of the Indonesian Islamic banking industry. Based on the preliminary figures from the Indonesian Financial Services Authority (OJK), up to the 3rd quarter of 2014, the total Islamic banking assets (full-fledged Islamic commercial banks and Islamic windows of commercial banks) were at IDR 244.2 trillion (around US$ 20 billion). It was still not moving from the figure in 2013, which was at IDR 242.3 trillion. Although we have yet to see the final figure in the last quarter of 2014 to arrive at any definite conclusion, it may be safe to say the growth of Indonesian Islamic banking industry this year, will drop to its first single digit growth.
By Farouk Abdullah Alwyni