Authors : Muchamad Bachtiar, Hermanto Siregar and Imam Teguh Saptono
Abstract: Contract type for home financing becomes the differentiation strategy of the Indonesian Islamic banking. The growth of Islamic banks in the last 5 years has shown stagnation; The people have not been able to feel the significant difference in benefits toward the existence of Islamic banks. Similarly, the financial performance of Islamic banks is worse than that of conventional banks. The objective of the research is to select the best Islamic home financing product as a differentiation strategy of Islamic banks in Indonesia. The selected product is expected to accelerate Islamic banking market share, to improve financial performance and to give more benefits to customers. Analytical Network Process (ANP) method was applied to select one of the four Islamic home financing products, i.e., Musharakah Mutanaqisah (MMQ), Ijarah Muntahia Bittamleek (IMBT), murabahah and murabahah hakiki. The results indicate that murabahah hakiki is the best selected product.
Muchamad Bachtiar, Hermanto Siregar and Imam Teguh Saptono, 2018. Differentiation Strategy of the Indonesian Islamic Banking Through a Contract Type for Home Financing. International Business Management, 12: 454-461.