Diversification of Islamic Financial Instruments
56
Table 22: Growth of Islamic Banking Institutions in Indonesia (IDR Billion)
Full-fledged Islamic Bank
2011 2012 2013 2014 2015 2016
Number of Banks 11 11 11 12 12 13
Number of Offices 1401 1745 2132 2163 1990 1869
Number of Employees 21820 24111 26717 41393 51413 51110
Total Assets - - - 204.961 213.423 254.184
Islamic Business Unit
2011 2012 2013 2014 2015 2016
Number of Banks 24 24 23 22 22 21
Number of Offices 336 517 422 320 311 332
Number of Employees 2.067 3.108 11511 4425 4403 4487
Total Assets - - - 67.383 82.839 356.504
Islamic Rural Bank
2011 2012 2013 2014 2015 2016
Number of Banks 155 158 163 163 163 166
Number of Offices 364 401 420 439 446 453
Number of Employees 3.773 4.359 4.826 4.704 4.704 4.478
Source: OJK Statistic of Indonesian Islamic Banking Industry (December 2016)
Even though the growth of Indonesian Islamic banking industry is very impressive, the market
share only reached 5.12% of total banking industry in 2016. This is still considered very low
compared to other OIC member countries such as Malaysia and Saudi Arabia. However, high
demand in funding, financing and growth of the industry, Islamic banking sector in Indonesia
is still considered as huge market with a lot of potentials to be explored (E&Y World Islamic
Banking Competitiveness Report 2016).
Financial Instruments Commonly Used
In general, the Indonesian Islamic bank portfolio of financing is not yet reflected the spirit of
profit sharing. Debt financing products based on the contract of Murabahah, Istishna, Ijarah
and Salam are dominating the equity-financing in Islamic bank instruments (based on
Mudarabah and Musharakah). Murabahah based financing is dominating the whole financing
of Indonesian Islamic banking industry, with about IDR 112 trillion, which is much larger
compared to other types of financing in December 2016.
Table 23: Financing Based on Type of Shariah Contract (IDR Billion)
Type of Financing Contracts 2011 2012 2013 2014 2015 2016
Mudarabah 10.229 12.023 13.625 14.354 14.820 15.292
Musharakah 18.960 27.667 39.874 49.336 60.713 78.421
Murabahah 56.365 88.004 110.565 17.371 122.111 139.536
Qard 12.937 12.090 8.995 5.965 3,951 4,731
Istisna’ 326 376 582 633 770 878
Ijarah 3.839 7.345 10.481 11.620 10.631 9.150
Source: OJK Statistic of Indonesian Islamic Banking Industry (December 2016)