Open AccessA Review: Product Pricing of Islamic Banking in Indonesia
Author(s) -
Radia Purbayati,
Kurnia Fajar Afgani,
Agil Krisna Rivanda
Publication year - 2021
Publication title -
european journal of business and management research
Language(s) - English
Resource type - Journals
ISSN - 2507-1076
DOI - 10.24018/ejbmr.2021.6.3.856
Subject(s) - islamic banking , islam , benchmarking , interest rate , business , profit (economics) , population , profit sharing , benchmark (surveying) , product (mathematics) , economics , finance , marketing , microeconomics , geography , demography , geometry , mathematics , archaeology , geodesy , sociology
Indonesia is a country with the largest Muslim population in the world with a Muslim population reaching 87% of the total population. This is an opportunity for Islamic Banks to be able to grow and develop as a bank with the concept of a profit-sharing bank. It is appropriate for all operational activities, including pricing stipulations for Islamic banking products, to be free from the element of interest (interest rate free). However, in practice, there are still pricing stipulations in Islamic banking products that benchmark interest rates. This study aims to review the pricing determination of Islamic banking products in Indonesia. The method used in this research proposal is a literature review. The literature review produced several alternative purposed for the Islamic Pricing Benchmarking method as a benchmark that can be used by Islamic banking in determining the pricing of its products.