Strategy for the Development of Sharia Financial Institutions in the Authority Perspective of Indonesia Financial Services

Chandra Satria(1*), Mohamad Faizal(2), Choirunnisak Choirunnisak(3),


(1) Sekolah Tinggi Ekonomi dan Bisnis Syariah (STEBIS) Indo Global Mandiri
(2) Sekolah Tinggi Ekonomi dan Bisnis Syariah (STEBIS) Indo Global Mandiri
(3) Sekolah Tinggi Ekonomi dan Bisnis Syariah (STEBIS) Indo Global Mandiri
(*) Corresponding Author

Abstract

This research provides an overview by the Republic of Indonesia Financial Services Authority and other research on the development and management strategies of Indonesian Islamic financial institutions, which are the largest Muslim population in the world and have the largest economy in Southeast Asia. The growth of Indonesian sharia financial institutions is quite significant plus high economic growth at the same time. This attracts researchers to explore further whether the Islamic banking sector is currently experiencing growth and growth consistently to contribute empirically to Indonesia's economic growth in the future. Indonesia's Financial Services Authority (OJK) provides an overview and prospects for the growth of several sectors such as national sharia financial industry assets increased by 27% (excluding Sharia shares) higher than conventional financial industry in 2017. The development of Islamic financial products is quite good and varied. It is including an increase in its own Islamic financial infrastructure activities. Recorded data that the overall market share of Islamic finance is still below 5% such as sukuk and corporate bonds circulating 3.99% of the value of the bonds and bonds represent the amount, the net asset value of Syariah mutual funds is 4.4% of the total net asset value of the mutual fund and Sharia insurance amounted to 3.44%. Although there are some Sharia products above 5% such as Islamic banking assets, 5.33% of all banking assets, state sukuk which accounted for 14.82 percent of the total outstanding state securities, Islamic finance institutions amounted to 7.24% of total financing, special Islamic financial services institutions amounting to 9.93% and Sharia microfinance institutions amounting to 22.26% at the end of 2016. Seeing these figures above the Financial Services Authority of the Republic of Indonesia as the regulator in driving financial institutions within the country provides hope and strategic programs that can be optimized to accelerate the growth of Islamic finance in Indonesia, namely by the existence of 1. Enhancing Islamic financial products. 2. Enhancing Sharia services with the use of the latest information technology; 3. Optimizing coordination with stakeholders regarding the development of the Islamic financial industry.

Keywords

History of Islamic finance, market share of Islamic finance, sharia financial potential

Full Text:

PDF

References

Andri Soemitra, (2009), Islamic Banks and Financial Institutions, Jakarta: Kencana.

Amir Machmud dan Rukmana. (2010), Islamic Bank: Theory, Policy and Empirical Study in Indonesia, Jakarta: Erlangga.

Hatifudin, (2004), “Islamic Bank: Theory, Policy and Empirical Study in Indonesia...”, Tesis Master, Yogyakarta: UII.

Iman Hilman, dkk., (2003). Future Islamic Banking, Jakarta: Senayan Abadi Publishing.

Hani Werdi Apriyanti, (2017),” Development of the Sharia Banking Industry in Indonesia; Opportunity and Challenge Analysis” Fakultas Ekonomi UNISSULA.

Hairiennisa Rohaya, (2008), “Development of the Sharia Banking Business Scale in Indonesia Pre and Post Office Channeling Policies” La Riba Jurnal, Vol. II, No. 2, Yogyakarta.

Nofinawati, (2015), Development of Islamic Banking in Indonesia "Faculty of Economics and Business in Islam IAIN Padang Sidempuan.

Rifki Ismal, (2012) “Indonesian Syariah Banking: Latest Developments and Industrial Blue Print” Jakarta.

Wirdyaningsih et al, (2006), “Islamic Banks and Insurance in Indonesia” Jakarta: Kencana Prenada Media.

Article Metrics

Abstract : 3 times
PDF : 5 times

Refbacks

  • There are currently no refbacks.


View My Stats