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Country story
Indonesia
Indonesia regulates sharia commercial banks and sharia business units within a large dual banking system.
Law No. 21 of 2008 defines sharia banking, governance and supervisory arrangements; financial supervision is undertaken by OJK.
Law No. 21 of 2008 defines sharia banking, governance and supervisory arrangements; financial supervision is undertaken by OJK.
The case pairs an explicit legal architecture with a diversified production base and a large domestic market.
A dedicated law creates real differentiation, while scale and productive consequence remain separate empirical questions.
A national trajectory cannot attribute industrial change to Islamic banking or establish how every institution allocates funds.
Descriptive comparison
Manufacturing value added
Latest available year: 2024.
Indonesia
What this visual showsA verified country trajectory in the measure’s stated unit.
What it does not establishA causal effect of Islamic finance on the observed outcome.
Descriptive comparison
Financing directed towards FIRE-related activities
Country-year medians by bank type. Each point reports its covered-bank count.
FIRE ordinarily refers to finance, insurance and real estate. Here the measure is broader: it captures bank financing reported for financial institutions, insurance, real estate and consumer-durable activities. It is used as a proxy for firm-level financialisation. The measure does not imply that every underlying financing claim is speculative, harmful or unproductive. It is a sectoral-allocation proxy and a level measure that is sensitive to bank size.
ConventionalIslamic
What this visual showsDescriptive median logged volumes among covered banks.
What it does not establishA bank-size-adjusted or causal difference between bank types.
Institutional sources