{
    "success": true,
    "data": {
        "id": 1671911,
        "msgid": "sharia-financial-entities-in-west-java-urged-to-innovate-1775929848",
        "date": "2026-04-12 00:16:40",
        "title": "Sharia financial entities in West Java urged to innovate",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Finance",
        "summary": "The Financial Services Authority (OJK) in West Java is encouraging sharia banking institutions to innovate in their products and services to boost sharia financial inclusion among the population. Key recommendations include expanding branch networks to remote areas, integrating IT for simpler access, and reducing costs to make sharia products more competitive against conventional banking. Despite conventional banks dominating the market with over 88% share in assets, deposits, and credit, sharia rural banks (BPRS) showed moderate growth in assets and lending in early 2026, though non-performing loans rose and profits declined sharply.",
        "content": "<p>Bandung (ANTARA) - The Financial Services Authority (OJK) of West\nJava is urging the banking sector to innovate in meeting the needs of\nthe community, thereby increasing sharia financial inclusion,\nparticularly in that region.<\/p>\n<p>\u201cThrough innovation in the products they offer, the needs of the\nresidents can drive that inclusion,\u201d said the Head of the Behavioural\nSupervision Division for Financial Services Business Actors of OJK West\nJava, Muhammad Ikhsan, at the 10th Jabar Islamic Economic Forum (JIEF)\nin Bandung on Saturday.<\/p>\n<p>The innovations that can be implemented, Ikhsan explained, include\nexpanding office networks that can reach the community widely and deeply\nin West Java.<\/p>\n<p>\u201cThe main one is the office network. Office networks that can reach\nthe remotest areas, which need to be improved going forward to increase\ninclusion,\u201d he stated.<\/p>\n<p>\u201cOffice networks. Then, those office networks need collaboration with\nIT so that they can meet needs; if we look at the community now, they\nwant something simpler,\u201d he said.<\/p>\n<p>Another equally important innovation that can be undertaken by\nfinancial entities is emphasising the reduction of costs that the\ncommunity must bear to enjoy sharia products, making them more\ncompetitive and attractive.<\/p>\n<p>\u201cThen, from the cost side, in sharia banking, the costs are still\nquite high compared to conventional ones. This is also a challenge, to\nlower the costs of services so that the reach becomes wider,\u201d Ikhsan\nsaid.<\/p>\n<p>\u201cSo, by introducing sharia finance to the community, it can also\nincrease literacy as well as inclusion,\u201d he added.<\/p>\n<p>Previously, OJK West Java reported that the performance of the\nfinancial services sector (SJK) up to the first quarter of 2026\ncontinued to show good resilience amid global and national economic\ndynamics.<\/p>\n<p>Based on business activities, banking is still dominated by\nconventional types, with market shares of assets, third-party funds\n(DPK), and credit at 90.30 percent (Rp953 trillion), 89.40 percent\n(Rp671 trillion), and 88.58 percent (Rp922 trillion) respectively, while\nthe remainder consists of sharia business types.<\/p>\n<p>As of January 2026, the total assets of rural banks (BPR) and sharia\nrural banks (BPRS) in West Java reached Rp34.24 trillion, growing 4.92\npercent year-on-year (YoY) by Rp1.60 trillion.<\/p>\n<p>Third-party funds (DPK) of BPR and BPRS amounted to Rp22.98 trillion,\ngrowing 6.33 percent YoY (Rp1.37 trillion). Credit disbursements\nrealised Rp24.69 trillion, growing 5.99 percent YoY (Rp1.40\ntrillion).<\/p>\n<p>The gross NPL ratio of BPR and BPRS trended worse, from 11.86 percent\nin January 2025 to 13.63 percent in January 2026. Meanwhile, profits of\nBPR and BPRS experienced a decline in January 2026 to Rp4 billion, or a\nsignificant drop of 85.34 percent from Rp3 billion in January 2025 (down\nRp2 billion).<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/sharia-financial-entities-in-west-java-urged-to-innovate-1775929848",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}