BI Encourages Sharia Financing for Corporate Expansion
Bank Indonesia is promoting sharia financing as a strategic option for corporations to fund investment and business expansion, as reported by Investor Daily on Wednesday (12/8/2026). The move is intended to increase the contribution of the halal industry and the Islamic finance sector to the national economy.
BI Acting Governor Destry Damayanti assessed that this strengthening requires closer connectivity between the halal industry and the Islamic finance sector. Through this integration, the financing needs of the business world are expected to be increasingly supported by sharia-based instruments.
“Sharia financing needs to become a strategic and competitive choice for corporate investment and expansion,” said Destry Damayanti, BI Acting Governor.
The development of this sector requires the establishment of corporate financing pipelines that are bankable, measurable and sustainable. This arrangement must also be balanced with deepening of the Islamic financial market and optimisation of the intermediation function.
“A bankable, measurable and sustainable financing pipeline needs to be built, strengthened by deepening of the Islamic financial market and intermediation, as well as collaboration between corporations, the Islamic finance industry, regulators, ministries/agencies and associations,” said Destry Damayanti, BI Acting Governor.
Capacity building and innovation in financing instruments are also accompanied by improvements in governance, risk management and monitoring systems. The performance of the sharia banking sector was recorded as growing positively up to June 2026, with financing reaching Rp720 trillion, up 11.43 percent year-on-year, while Third-Party Funds grew 13.13 percent to Rp816 trillion.
In the real sector, the halal supply chain rose 5.5 percent in the same period, while the outstanding value of corporate sukuk reached around Rp95 trillion. The need of corporations for long-term financing schemes aligned with expansion scenarios was also voiced by business players.
“Corporations need long-term financing with structures that suit their expansion needs,” said Titi Khoiriah, Head of the Sharia Economic Agency at Kadin Indonesia.
The importance of an ecosystem-based approach was also highlighted in the development of this industry. Sharia banks are encouraged to connect corporations with the entire supply chain to expand working capital financing.
“An ecosystem-based approach is important. Sharia banking is not enough just to finance corporations, but needs to connect them with business players along the supply chain,” said Bob Tyasika Ananta, Head of Business Relations at the Association of Indonesian Sharia Banks and Deputy President Director of Bank Syariah Indonesia.
As a concrete step to bring together corporations with funding institutions, BI held a business matching event involving 20 Sharia Commercial Banks and Sharia Business Units together with 51 corporations. In addition, the Sharia Financing Month and Indonesia Intermediation Acceleration programmes are also being run to accelerate the flow of sharia funds to the real sector.