Business

Sharia bank industry to
continue accelerating

The central bank is optimistic that Islamic banking in the country will continue to accelerate in 2010 as the economy gears toward recovery and new policies support the industry.

"The growth of Islamic banking in 2010 is expected to increase further ," Bank Indonesia (BI) acting governor Darmin Nasution said, delivered by BI deputy governor Budi Mulya, in a seminar on the prospect of Indonesia's Islamic banking Monday.

Darmin said the industry would develop because of an organic growth from the existing players, and also the increased number of new banks.

As of September the total assets of Islamic banks grew by 26.6 percent from a year earlier. It grew by 17.1 percent in the first nine months this year.

"I believe, after considering the future economic development, nationally as well as internationally, that Indonesian Islamic banking can maintain its growth," he said.

BI estimated the economy to expand between 5 percent and 5.5 percent in 2010, up from about 4.3 percent this year, due to higher growth of private consumption and exports.

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