BANKING - Islamic bank financing in Indonesia increased by Rp16, 10 trillion

Islamic bank financing in Indonesia increased by Rp16, 10 trillion

Bank Indonesia reported the financing of Islamic banks in Indonesia increased by Rp16, 10 trillion (year to date / ytd) this year from Rp46, 88 at the end of last year to Rp62, 99 per October 2010.

The increase was driven by growth in distribution of financing in all three segments namely the use of working capital financing grew by Rp7, 56 trillion (ytd) to Rp30, 43 trillion, investment financing Rp2, 61 trillion to Rp12, 57 trillion, and consumer financing Rp5, 92 trillion to Rp19, 98 trillion.

Director of the Directorate of Islamic Banking Bank Indonesia (BI) E Mulya Siregar acknowledged consumer financing segment contributed to the total height of Islamic financing.

Based on data of BI, is slowly but surely consumptive portion of financing by Islamic banks in Indonesia have evolved in the last year. Meanwhile, although the experience value growth, but the portion of working capital financing and investment financing actually shrinking.

"Segments in the Islamic consumer finance is great. Among other housing finance and motor vehicles. But we also encourage Islamic banks to target the segment of working capital to finance franchise," he said, today.

BI reporting portion of consumption by the Islamic bank financing in October last year amounted to 27.4% of total Islamic banking financing and grew to 30.0% at the end of 2009. In September 2010, the share of consumer financing to grow back to 31.4% and grew again to 31.7%.

Meanwhile, the portion of working capital financing in October last year reached 51.3% and decreased to 48.8% at year end.

In September 2010, the portion of working capital financing shrank to 48.7% and fell further to 48.3%.
BNI Business Director Bambang Widjanarko recognize Shariah financing opportunities in the consumer segment is still too high. In the next year, BNI Syariah consumer lending growth target of 50%.

"Islamic finance is still a big opportunity. The market is good. We believe next year could grow 50% in all types of loans, including financing," he said.

He revealed until November 2010 it has distributed consumer financing amounting to Rp1, 65 trillion. "Housing finance [mortgage] still dominate consumer financing up to 70%," he said.

Source : http://economicsyariah-freejournalismcourses.blogspot.com/2010/12/islamic-bank-financing-in-indonesia.html - Dec 3, 2010