Fitch Ratings: Indonesia’s Islamic Banking Roadmap to Drive Islamic Finance Industry Market Share by 2024

Fitch Ratings (Fitch) expects the new Islamic Banking Roadmap to contribute positively to Indonesia’s Islamic finance industry in the medium term. Fitch stated that any progress from the development plans set out in the Roadmap will take time, thereby limiting the short-term upside.

While no specific targets have been stated, the Roadmap aims for a 20% market share for the Islamic finance industry by the end of 2024 (8.6% in 2018), which includes banking, insurance, and capital markets.

The Roadmap addresses several aspects of Indonesia’s Islamic finance industry. It includes plans to strengthen regulations and corporate governance, increase penetration of Shariah-compliant products in t...