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Friday, 10 May 2024 08:55

Indonesia's Islamic Banking Industry Becomes More Attractive for Investors

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 VOInews, Jakarta: Bank Syariah Indonesia (BSI), which currently ranks among the 10 Islamic banks with the largest market capitalisation in the world, makes Indonesia's Islamic finance an attractive and potential market for domestic and foreign investors. This was conveyed by Adiwarman Azwar Karim, an Islamic finance expert at the Islamic Banking Outlook 2024 held at Flix Cinema, Ashta 8 District South Jakarta, Wednesday (8/5/2024). The event was attended by Islamic Banking leaders and Islamic finance practitioners in Indonesia.

 

"The first thing is that we are happy with the current developments. Bank Syariah Indonesia, for example, is in the top 10 largest Islamic banks in the world in terms of market capitalisation. This is an encouraging thing and gives a signal to the world that Indonesia is an attractive country and has great potential for investment in Islamic finance," said Adiwarman, who is currently Deputy President Commissioner of Bank BSI.

 

In his presentation, Adiwarman A. Karim outlined a roadmap for the development of national Islamic banking through the consolidation of sharia units per cluster. "We see that there will be consolidation, where banks that have small sharia business units (UUS) will consolidate with seven scenarios, where these small banks, UUS-UUS, assets will group themselves into several groups and become banks with larger sizes," explained the founder of Karim Consulting Indonesia.

 

Adiwarwan also stated the possibility of the birth of two giant Islamic Banks like Bank Syariah Indonesia, which currently has total assets of Rp 348.41 trillion as of February 2024. According to him, the presence of new large Islamic banks will increase the percentage of Indonesia's Islamic banking assets, which currently reaches 7.38% of Indonesia's banking share.

Read 124 times Last modified on Friday, 10 May 2024 09:24