Prioritizing Strategies to Boost Market Share of Islamic Banking Industry in Indonesia

Although Indonesia has necessary infrastructure to support Islamic banking industry, after 30 years of its establishment, market share of this industry is relatively small, around 6.5% of total market share of banking Industry. This study aims to explore strategies that need to be undertaken and prioritized to boost market share of Islamic banking industry in Indonesia. This study employs Analytic Hierarchy Process (AHP) involving experts from various backgrounds, such as regulators, Islamic bankers, and other stakeholders, consist of government official, investor, and academics. Results of this study show that strategy to implement Islamic finance-friendly regulations shall get the highest priority to be implemented. This is important, so that, Islamic bank can perform different business model and deliver additional value to the customer as compared to with the conventional counterpart