"Declining economic growth has affected the real-estate sector, which will make it difficult for Shariah banks to achieve a market share target of five percent this year," BI Governor Agus Martowardojo said.
Jakarta (ANTARA News) - Shariah banks will be unable to meet their market share target of five percent until the end of this year, Bank Indonesia Governor Agus Martowardojo said on Monday.

"Declining economic growth has affected the real-estate sector, which will make it difficult for Shariah banks to achieve a market share target of five percent this year," he said during the opening of a seminar on "2014 Shariah Banks Outlook" on Monday.

Until October this year, the Shariah bank market share had touched 4.8 percent with accounts totaling 12 million or 9.2 percent of total national accounts, while the number of offices had reached 2,925, he pointed out.

Agus further said that the 5 percent target could only be met next year. "The target will only be met by the end of 2014," he added.

He said the development of Shariah banking in the country during the past year had actually been very fast, especially the growth of general Shariah banking and Shariah business units that dominate the Shariah banking assets.

Shariah banking assets rose in October to Rp229.5 trillion from a year ago, including rural banks assets, which totaled Rp235.1 trillion.

"The growth is still within the corridor of the 2013 growth projection revision that takes into account the slowdown in economic growth and the year-end growth cycle in which Shariah banking assets tended to increase significantly," Agus noted.(*)

Editor: Heru Purwanto
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