Sri Mulyani: Total Sharia Financial Assets Reached IDR 1,710.16 Trillion As Of September 2020

Minister of Finance, Sri Mulyani Indrawati. (Photo: Ministry of Finance)

JAKARTA - The Ministry of Finance noted that the total Islamic financial assets in Indonesia reached IDR 1,710.16 trillion as of September 2020 with a market share of 9.69 percent. However, this amount does not include Islamic shares.

Finance Minister Sri Mulyani Indrawati detailed that the sharia financial assets include Islamic banking assets of IDR 575.85 trillion, the non-Islamic banking industry of IDR 111.44 trillion and the Islamic capital market of IDR 1,022.87 trillion.

"During the last three decades since the establishment of the first Islamic bank, namely in 1992 (until now) Islamic finance has grown quite impressively," he said, at the Sharia Business and Academic Sinergy (SBAS) event which was held virtually, Tuesday, December 29.

Sri said, in a very depressed condition due to COVID-19, national banking intermediation tends to experience a decline. However, the performance of Islamic banking tends to be stable and grows higher than conventional banking.

"This often happens in a crisis situation that occurred in 2008," he said.

Furthermore, Sri explained, as of September 2020 Islamic banking assets grew by 10.97 percent. Meanwhile, the growth of conventional banking is only 7.77 percent. This means that the growth of Islamic banking assets is higher.

Not only that, third party funds also experienced growth of 11.56 percent. Meanwhile, conventional banking third party funds grew by 11.49 percent.

Meanwhile, the distribution of Islamic banking financing or credit grew 9.42 percent. Meanwhile, conventional banking credit growth actually experienced a decline, which only grew 0.55 percent.

"This is much higher (growth). This means that the industry, especially Islamic banking, has a fairly stable position and has loyalty from the entire ecosystem," he explained.