THE MINORITY OF

SHARIA BANK CLIENTS

BY KHADIJA SQUAD 
INDONESIA’S MOSLEM POPULATION

1
st

BIGGEST in THE WORLD

INDONESIA’S MOSLEM POPULATION
NO NAME PLACE OF POPULATION
WORSHIP PERCENTAGE
1 ISLAM 87,2%

2 PROTESTANT 6,9%
3 CATHOLIC 2,9%
4 HINDU 1,7%
5 BUDDHA 0,7%
6 KHONGHUCU 0,05%
 INDONESIA’S SHARIA BANKS

BUS
14

UUS 20

BPRS
165
The number of sharia bank’s clients reach
23.18 million at the end of August 2018.
According to Kariastanto, there are at least four possible reasons why
the market share of sharia banks are still small in Indonesia.

1. The lack of Muslim awareness about sharia banks.

2. The infrastructure and quality of sharia banks are significantly less
than conventional banking.
3. conventional banks have non-technical advantages compared to
sharia banks. As a result, the benefits of sharia banking that can meet
wider demands, namely sharia and conventional services are not
achieved.
4. The lack of full support from the government for sharia banking.
That is proven by the absence of a single rupiah of state money
entrusted to sharia banking.
 SHARIA BANK’S POTENTIAL IN THE
FUTURE
The potential of the Islamic financial sector is large enough to sustain the
national economy. However, this potential has not been well managed. As a
country with a majority Muslim population, Indonesia is still lagging behind
in terms of sharia-based financial management. In fact, other countries, such
as the United Kingdom, Japan and Thailand, began to work on this sector.

BNI Syariah Corporate Secretary, Adjat Djatnika said that currently the
sharia banking industry is showing signs of continued improvement, with the
market share of sharia banking reaching 5.5 percent of the total market share
of the national banking industry. "The development of the growing sharia
banking industry needs to continue to be driven by people's understanding of
sharia financial literacy," he concluded.
 In Law Number 10 of 1998 concerning Banking and Law No.
23/1999 concerning Bank Indonesia (BI). Regulates the development
of Islamic banking development in Indonesia.
According to the BI survey that of the approximately 4,000
respondents spread across four provinces, the majority (> 95 percent)
thought that the banking system was important and needed to support
the smooth running of economic transactions. The general
impression of the public about Islamic banks is:

1. Identical to banks with profit sharing systems

2. Banks for Muslims

 
 The survey shows that the level of public awareness (on Java) about the
existence of the Islamic banking system (in addition to conventional banks) is
relatively high (West Java: 88.6 percent, Central Java and DIY: 71.2 percent,
East Java: 72 percent ). Mass media information, socialization activities and the
start of the growth of new sharia bank offices, have increased public awareness
of the application of the dual banking system in Indonesia. Nevertheless, the
level of understanding of how the mechanism of determining the results
(return), the characteristics of products and services, as well as Islamic bank
agreements, in general are still low.

Based on the above survey, the Islamic banking system should be optimized
and prioritized. Because the Islamic banking system aside from still providing
material profit, also the most important thing is to carry out charity in
accordance with the instructions of the Islamic religion.
 SHARIA BANK’S IMPACTS ON
NATIONAL ECONOMY
1 Development and growth in the real
sector.
2
The amount of goods is balanced by the amount of money:
This balance will have a micro impact in the form of economic stability

3 A fair and good profit sharing system will have an impact on

equity.