ISLAMIC BANKING IN INDONESIA : Growth and Perfomance Review
Although the market share of Islamic banking at the end of 2015 as still relatively small at around 5%, the industry registered faster growth rate compared to the conventional banking industry. Total assets of the Indonesian Islamic banking industry grew at a CAGR of 27% between 2009 and 2014, while the total banking industry assets grew at a CAGR of 17% during the same period. In the fact between 2011 and 2012, the CAGR of Islamic banking industry reached a high of 30%. But broader slowdown of the banking industry overall growth due to weak economic environment had weighed on the financial perfomance of Islamic banks in Indonesia.