Analysis of the Indonesian Islamic Banking Industry SCP Approach

Abstract

This research aims to take a deeper look at the impact of problems that arise in the period 2021 to 2023 on the performance of the Islamic banking industry in Indonesia. This study employs a qualitative methodology, including literature review and the Structure Conduct Performance (SCP) approach which is used specifically in industry performance. The findings are that Islamic commercial banks, especially the government-owned Bank Syariah Indonesia, dominate the Islamic commercial bank market in Indonesia followed by regional and commercial Islamic commercial banks. The dominance of government-owned Bank Syariah Indonesia is very evident from its market share and asset value. Almost half of the market share of Islamic banks in Indonesia is taken by Bank Syariah Indonesia. And of the thirteen Islamic commercial banks in Indonesia, only two Islamic commercial banks have poor performance. The practical implications are conducting the analysis performance of Islamic Banking Industry in Indonesia through SCP. The value of this research is the oligopolistic nature of the Islamic banking industry makes the development of the Islamic banking industry rather difficult compared to traditional banks