Determinants Of Demand For Islamic Banking Services: A Survey On Moslem Public Servants In Indonesia

Ni Nyoman Sawitri
Universitas Trilogi

Erie Febrian
Universitas Padjadjaran


There have been many studies empirically investigating behavior of customers in using Islamic Bank services, particularly in Islamic economies. Nevertheless, there have been no studies conducted to explain behavior of Muslim customers in using the service as a response to Muslim religious leader’s Fatwa, and more conducive regulation. This study is aimed at revealing the determinants of demand for Islamic Banking services in a Muslim environment. This study empirically investigates the decision determinants among moslem public servants in Indonesia in using Islamic Bank services. We study some variables related to general and specific motivations of fulfilling banking needs through Islamic bank. We employ Partial Least Square to answer the research questions. We find that service accessibility, information technology-based product and product knowledge are main concerns of the customers. Religious factors are not significant driver. Government and private sector support are important determinants.

Keywords: Islamic Bank service, Public servants