Who Patronises Islamic Banks in Indonesia?

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Islamic banks in Indonesia as well as some other countries like Pakistan seem unable to capitalize their potential market that reaches 232 million and 161 million Muslims respectively. Total assets of Islamic banking in Indonesia is only USD3,267 million, or equivalent to about 10 percent of total assets of Islamic banking in Malaysia and 25 percent of total assets in Turkey. It remains a question as to why the asset size developed rather slowly. Could it be due to the ignorance of Indonesian Muslims who cannot differentiate between Islamic banks from its conventional counterpart? Alternatively, is it because Islamic banks could not differentiate its potential customers very well in such a way that they cannot formulate a better marketing strategy?



Abduh, M., and Omar, M.A. (2010). Who Patronises Islamic Banks in Indonesia?.Australian Journal of Islamic Law, Management and Finance, Vol. 1, No. 1, pp.40-53.

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