REPUBLIKA, JAKARTA -- Governor of Bank Indonesia (BI), Agus Martowardojo explained that performance and growth of Islamic banking industry was quite good.  Total assets of Islamic banking reached 299.5 trillion IDR, total financing of 179 trillion IDR and total deposits of 174 trillion IDR.

"Growth of Islamic banks and Islamic business units reached 23 percent year on year until October 2013," Martowardojo said recently.

There are 11 Islamic banks, 23 Islamic business units and 160 sharia rural banks (BPRS) in Indonesia. Martowardojo explained that increased office networks have a positive impact on number of fund accounts in Islamic banks to 12 million accounts. Financing Deposit Ratio (FDR) has reached 100 percent of funding priority to micro, small and medium enterprises.

Islamic banking is able to maintain Capital Adequacy Ratio (CAR) ranging from 14 to 15 percent and Non Performing Financing (NPF) is controlled at two to three percent. However, five percent target of market share in Islamic banking industry cannot be achieved this year, because economic pressures and decreased performance of real sector.

Macroeconomic impact of financial crisis in 2013 is slowing economic growth to below six percent. It also affects national Islamic banking industry. Martowardojo hopes that global economy will rise and domestic economy will increase positively.

Executive Director of Islamic Banking Department, Edy Setiadi said that BI projected market share of Islamic banking would reach 5.25 to 6.25 percent by the end of 2014.

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