INDONESIA - BANKING - BI: 5 Years, Can Islamic Market Share 10 Percent

www.kompas.com - JAKARTA, KOMPAS.com - Bank Indonesia (BI) is optimistic the market share of Islamic banking on the banking industry in terms of assets could rise to 10 percent in five years. Currently, a new Islamic banking holds 4 percent of market share.

This can be achieved due to BI see the growing trend of Islamic banking in the last five years. BI deputy governor Halim Alamsyah said Islamic banking assets grew an average of 40.5 percent over the last five years. These include the growth of Islamic banks, Islamic business units, or sharia rural banks. This figure is two times faster than conventional banking growth.

"If growth can continue as now, is not impossible that in the next five years the market share of sharia could approach 10 percent. If plus five more years to 15 percent, "Halim said when opening the National Congress of Indonesian Association of Islamic Banking (Asbisindo), Wednesday (03/21/2012).  (source)

INDONESIA - BANKING - Innovation and regulation boost Islamic banking

www.republika.co.id - JAKARTA – The development of Islamic bank asset is still rocketing in 2012, economic analyst, Euis Amalia, says. The increase is supported by the increasing public interest in Islamic banking products and the emerging of Islamic general bank (BUS).

The Islamic banking asset in 2011 entirely records 49 percent growth compared to 2010. The asset reaches 149 trillion IDR or four percent market share of national banking. (source)

INDONESIA - BANKING - Islamic Banking Product Innovation Slow, Why Yes!

REPUBLIKA.CO.ID, JAKARTA --- Product innovation in Islamic banking is still hampered a number of constraints that come from external and internal bank. Therefore, the government was asked to help overcome these obstacles to the development of Islamic banking in line with conventional banking.

Islamic banking practitioners, Jordhy Kashoogie Nazar reveal the external challenges of product development comes from regulations that are conservative. As a result, Islamic banking products are still monotonous. (source)

INDONESIA - REGULATIONS - Push the Product Innovation, BI Give Incentive Regulation

Jakarta (15 / 8) - Many of the efforts made by Bank Indonesia as regulator to increase its market share of Islamic banking. One is incentive regulation. This was disclosed the Director of the Directorate of Islamic Banking Bank Indonesia, Mulya Siregar on the sidelines of Indonesia Halal Exhibition Business and Food Expo in Jakarta, Saturday (13 / 8). (source)

OPINION - Innovation and Islamic finance

Innovation and the ensuing needed authenticity are the pre-requisites to move Islamic finance to US$2 or US$2 trillion (RM6 or RM6 trillion) by 2015.

But, how best to describe innovation in Islamic finance? Famous quotes often capture succinctly the essence of the issue, and, for innovation in Islamic finance, the below quotes are a good beginning.

"Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations." - Steve Jobs. (source)

FINANCE - MALAYSIA - Develop Other Premium Islamic Financial Products & Services, Says Ahmad Husni

KUALA LUMPUR, Oct 4 (Bernama) -- Although Malaysia has done very well in the sukuk market, it has to seriously develop its capacity in other products and services that would command greater premiums not only within the domestic market but also in the foreign Islamic financial markets.