Abstract:

In the past few decades, Islamic banking has gained the popularity not only in Muslim countries but also in non-Muslim countries. This is due to the fact that the products and services provided by Islamic banking are not only intended for Muslims but also non-Muslims. As one of the largest Muslim population countries in the world, Indonesia has the potential to develop its Islamic banking. However, not all the Indonesians have the same level of knowledge and perceptions about Islamic banking. Therefore, it will turn to be the obstacles of Islamic banking growth in the future. This research is conducted to investigate the knowledge and perception of Muslim and non-Muslim about the products and services provided by Islamic banking in Papua Province, one of the regions in Indonesia with minority Muslim population. Using the questionnaire to collect the data from 452 Muslim respondents and 231 non-Muslim respondents, the result showed that there is a correlation between religion and knowledge as well as religion and understandings of Islamic banking products, services, and operational activities. Furthermore, this study also reveals that both Muslims and non-Muslims have a good and positive perception of Islamic banking.

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