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27.4.11

Islamic Banking in Indonesia: Lessons Learned

Islamic Banking in Indonesia: Lessons Learned
By Rifki Ismal, Directorate of Islamic Banking, Bank Indonesia
April 2011

This is a paper prepared for the Annual Meeting on Trade and Development, United Nations of Conferences on Trade and Development, April 6th-8th, 2011, in Geneva, Switzerland.

Abstract: "In Indonesia, Islamic banking shows a progressive performance with a robust performance of banking indicators. Its operations  engage non bank financial institutions, Islamic money and capital market and takaful (Islamic insurance) with the ultimate target of financing the real sector and improving the economy. However, there are still some challenges to be solved in particular the small market share, lack of human resources and, lack of product development. Some recommended actions are proposed in the paper to mitigate those problems and foster the development of the Islamic banking industry."
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