Growing Market Share for Indonesia’s Islamic Market Remains Challenging: Wimboh Santoso

Within Indonesia, the market share of the Islamic financial services industry remains relatively small, with Islamic financing accounting for just a 9.9% market share relative to the total banking sector, according to Wimboh Santoso, Chairman of the Board of Commissioners of the Financial Services Authority (OJK).

Speaking at a webinar on the 10th of February 2021, Wimboh stated that Indonesia’s Islamic finance industry may not be able to achieve its 20% market share target. According to Wimboh, this is due to several reasons, including lack of development of the ecosystem whereby the publics’ needs for Islamic products are not comparable against the capabilities of the Islamic financial institutions. This is evident from the limited capital available, with 6 out of...