Indonesia Sharia Banking Set for 50% Growth by 2010 Says New Report

NewswireToday – /newswire/ – London, United Kingdom, 10/24/2008 – ReportBuyer.com, the online destination for business intelligence for major industry sectors, has added a new report examining the Indonesian Sharia banking market.

Report Buyer, has added a new report examining the Indonesian Sharia banking market.

The report “Sharia Banking System in Indonesia“ predicts that the Indonesian Sharia banking market will grow at a compound annual growth rate (CAGR) of around 52% from 2008 to 2010. A large Muslim population, low penetration of Sharia banking and improvement in regulatory framework will drive the Sharia banking industry in Indonesia to exceed RP 119 trillion by 2010.

As part of its efforts to support the Sharia banking industry in the county, the Central Bank of Indonesia is following a blueprint which aim is to strengthen the Islamic banking industry by 2015, says the report. The industry development will be focused on increasing the efficiency of the Islamic banking, integrating the Islamic banking into Islamic financial industry, as well as conforming to global Islamic banking standards. With this development strategy, along with the revival of the Islamic religion that is popularising the Sharia banking products in the country, the sector will see concrete growth in the near future.

Amidst the rising popularity of Sharia banking in Indonesia, the demand for Sharia financing will surge at an expected CAGR of more than 51% from 2008 to 2010. The demand of Sharia financing will be driven by lending to SMEs (Small & Medium Enterprises), which will be able to increase their working capital requirements without compromising on their own ethical values.

The report provides an extensive and in-depth analysis that enables clients to understand the Islamic banking industry in the Southeast Asian country of Indonesia. It offers the reader a strategic insight into the banking industry in Indonesia and helps to identify the growth opportunities in the market.