designing strategy for developing...
TRANSCRIPT
DESIGNING STRATEGY FOR
DEVELOPING
SYARIA BANKS IN JAVA:
FOLLOW UP OF THE
OPPORTUNITIES, CONSTRAINTS
AND PERFORMANCE OF SYARIA
BANKS IN JAVA
INCEIF ISLAMIC BANKING AND FINANCE
EDUCATIONAL COLLOQUIUM
March 15, 2006 Kuala Lumpur
Rifki Ismal
Contents
Introduction
Problem Concern
Research Questions
Objectives of the Research
Area of the Research
Research Design
– Research Approach
– Research Methods
Related Research & Previous Research
Period of Research
Introduction
Syaria banks develop significantly during last decades due to the need of public to invest money in Islamic principle and system.
To further develop syaria banks, Bank Indonesia in cooperation with local state universities did initial surveys of opportunities, constraints and performance of syaria banks in 3 important provinces in Java.
This research proposal will try to design development strategies for syaria banks in Java after carefully analyzing information and empirical evidences from surveys being done.
Problem Concern Many efforts have been doing such as opening
sharia banking faculty and licensing office channeling in banks, but more efforts needed.
To detect the performance of syaria banks so far, some facts, impression, information and opportunities have been gathered through the surveys.
It is very important to follow up this step by designing syaria banking development strategies that will create the best way to socialize syaria banks, to further develop syaria banks’ networks, to increase participation of syaria banking stakeholders and finally to advance the role of syaria banks in Indonesian banking industry.
Research Questions
After considering people’s impression, understanding and requirements from surveys
What is best way to socialize syaria banks?
What should be prepared to further develop syaria banks’ networks?
How do we increase syaria banking professionalism?
How do we diversify syaria banks’ products and services? What are regulations needed?
How do syaria banking stakeholders create positive image regarding syaria banks compared with conventional banks?
Objectives of Research
To carefully analyze the opportunities, constraints and performance of syaria banks in Java.
Finding out strategic actions to be taken by designing syaria banking development strategies by involving all stakeholders.
These strategies are going to be part of grand strategy of developing syaria in Indonesia set by Bank Indonesia under “Blue Print of Developing Syaria Banks in Indonesia.
Area of Research
Elaborating physiological factors ultimately to increasing the understanding of people regarding syaria banks.
Internal strategies to be designed after knowing empirical evidences
External strategies to be designed by involving syaria banks stakeholders (Moslems scholars, Governments, academician, etc).
Research Design
Research Approach
Total Asset of Syaria Banks
2,500
5,000
7,500
10,000
12,500
15,000
17,500
20,000
Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05
Billion Rp
0%
20%
40%
60%
80%
100%
120%
Asset - left
Growth (yoy) - right
Research Design
Research Approach
Total Deposit of Syaria Banks
2,500
5,000
7,500
10,000
12,500
15,000
Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05
Billion Rp
0%
20%
40%
60%
80%
100%
120%
140%
Total Deposit - leftGrowth (yoy) - right
Research Design
Research Approach
Total Financing of Syaria Banks
2,500
5,000
7,500
10,000
12,500
15,000
17,500
Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05
Billion Rp
10%
30%
50%
70%
90%
110%
130%
Financing - leftGrowth (yoy) - right
Research Design
Research Approach
NPF of Syaria Banks
100
200
300
400
500
600
700
800
Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05
Billion Rp
0%
1%
2%
3%
4%
5%
Non Performing Financing/NPF
NPF Ratio - right
Research Design Research Approach :Information from People in West Java Province
Impression of Syaria Banks from Syaria Banks’ Customers (%)
Research Design
Research Approach :Information from People in West Java Province
Impression of Syaria Banks from Conventional Banks’ Customers (%)
Research Design Research Approach :Information from People in West Java Province
Knowledge of Syaria Banks from Syaria Banks Customers (%)
Research Design
Research Approach :Information from People in West Java Province
Knowledge of Syaria Banks from Conventional Banks Customers (%)
Research Design Research Approach :Information from People in West Java Province
Sources of Information about Syaria Banks (%)
54.7
2623.3
20.8
13.3
0
10
20
30
40
50
60
Friends,
workplace
From Syaria
Bank
Electronic Media Printing Media Brochure
Research Design Research Approach :Information from People in West Java Province
Customers Selection on Banks
Research Design Research Approach :Information from People in West Java Province
Motif of Saving & Lending in Syaria Banks (%)
11.1
31.5
20.7
29
23.1
12
0
5
10
15
20
25
30
35
Profit Sharing
System
Quick Services
(Saving)
No Interest
(Saving)
Syaria Law Quick Services
(Lending)
No Interest
(Lending)
Research Design Research Approach :Information from People in West Java Province
Preference of Syaria Banking Products (%)
4.6
89.8
7.49.9
27.7
0
10
20
30
40
50
60
70
80
90
100
Demand Deposit Saving Deposit Time Deposit Murabahah Funding Syirkah Funding
Research Design
Research Approach :Information from People in East Java Province
East Java People Impression about Banks (%)
Research Design Research Approach :Information from People in East Java Province
East Java Companies Impression about Banks (%)
Research Design Research Approach :Information from People in Central Java and
Jogjakarta Province
Knowledge of Saving Products (%)
Research Design Research Approach :Information from People in Central Java and
Jogjakarta Province
Knowledge of Lending Products (%)
Research Design
To Save in Syaria Banks To Get Financing from Syaria Banks
* Age * Sex
* Acceptance to New Technology * Agricultural Sector
* Family Mobility * Service Sector
* Flexibility of Religious Complience * Government Sector
* Comprehensiveness * Acceptance to New Technology
* Social Status
* Flexibility to Different Culture
To Save in Syaria Banks To Get Financing from Syaria Banks
* Age * Social Activities
* Family Typology * Family Norm
* Flexibility to Violate Islamic Rules * Flexibility to different culture
* Comprehensiveness * Flexibility to Violate Islamic Rules
Research Approach :Information from People in Central Java and Jogjakarta Province
Factors Affecting Individual Customers to Save and Get Financing
Factors Affecting Companies to Save and Get Financing
Research Design
Research Methods: Personal Approach, Social Approach,
Economic Approach, Religiuos Approach.
General Concept of Purchase Decision Process
Need Assesment Info Assesment Alternative Evaluation Purchasing Process After Purchase
Benefit Sought Source of Information Prior Consideration Reasons to choose Satisfaction
Motivation Media Effects Quality Indicators Place to purchase Loyalty
Involvement Focus of Attantion Expenditure
Research Design
Decision Process to Use Syaria Banking System Background of People Social System Variables Role of Information
* Personal * Norms * Families
Attitude Belief / trust Parents
Education Religiuos Norm Brothers/Sisters
Age * Social Characteristics others
Sex State of Urbane * Friends
Openess to idea Social Status Neighbors
Impression of banks Religious Society From Schools
* Economic Variables Materialistic Society From offices
Income * Dependence on Leaders * Syaria Banks
Rate of Saving Moslem scholars Seminars
Occupation/business Teachers/ Lecturers Brochure
Family Expenditures Head of Country Promotion events
* Others * Others * Others
Level of Knowledge
on Syaria Banking
Preference Variables
* Characters of Syaria Banks
Advantages Self Persuasion Comunication Source
Compatibility
Complexity
Accessability Decision
Religious System
* Others
Adopting Rejecting
Loyally adopting Considering first
Relative to the best one Truly rejecting
Confirmation
Related Research and Previous Research
Research on syaria banking development
strategies conducted by other countries.
Previous research in Bank Indonesia to create
initial impression on syaria banks in Indonesia.
Related research conducted by Islamic Research
Institute (Tazkia, KBC, etc).
Related research conducted by academia in
Indonesia.
Period of Research
It probably takes 3 months starting anytime
during 2006.