INDEF: Indonesia Needs Sociology And Anthropology Study To Optimize Sharia Economic Potential

JAKARTA - INDEF Research Director Berly Martawardaya said that sociological studies and anthropology related to Islamic finance needed to be improved to see consumer behavior and market segmentation better in order to optimize sharia economic growth.

In an online discussion held by INDEF, Thursday, April 4, he said that there were different approaches in marketing Islamic financial products to several groups of people in Indonesia, which American anthropologist Clifford Geertz classified into santri, abangan, and priyayi groups.

"In Indonesia, we classify it, not based on ethnicity and religion, but spectrum, its name is nationalist and Islamic. So if the title (the bank name) is very Islamic, the products are mudharabah, musyarakah, murabahah, something like that," said Berly Martawardaya, quoted from Antara.

According to him, in the past the priyayi and abangan groups were not familiar and were not comfortable using products with Arabic language brands, so the first Islamic bank to appear in Indonesia chose to use Arabic names that were familiar to the public.

He also found that most banks that are included in the Best Islamic Financial Institution according to the British financial media, The Banker, do not use Islamic names or the term syariah.

For example, Saudi National Bank and Saudi National Bank from Saudi Arabia, National Bank of Kuwait and Kuwait Finance House from Kuwait, and Maybank from Malaysia.

Berly said that embedding the word'syariah' in many banks in Indonesia currently tends to aim to attract potential customers from groups classified as students.

Meanwhile, an approach to the general public who do not come from the santri group is now carried out through the concept of 'hijrah'.

"Of course this approach only works for those who already have strong roots or Islamic values, but if not, it will backfire (backfire). So this is what needs to be prepared because there are not many sociological studies and anthropology of Islamic finance," he said.

Berly also advised sharia financial industry players not to use the same marketing strategy for all community groups given the condition of the Indonesian people who are very pluralistic.

He said that there needs to be a detailed segmentation and a different narrative for the different segments of prospective customers so that national Islamic banking and real sectors can be more advanced.

"Segmentation and targeting are important, so marketing strategies and expansion strategies should not be one size fits all," he said.