Indonesian Political, Business & Finance News

BI: Sharia Financing a Strategic Key to Boosting Investment and Corporate Expansion

| | Source: REPUBLIKA Translated from Indonesian | Economy
BI: Sharia Financing a Strategic Key to Boosting Investment and Corporate Expansion
Image: REPUBLIKA

Acting Governor of Bank Indonesia (BI) Destry Damayanti stated that strengthening connectivity between the halal industry and Islamic finance is key to expanding corporate access to financing, particularly to support investment and expansion. She made the remarks at the Strategic Forum on Sharia Financing for Corporate Expansion titled ‘Unlocking Corporate Growth Through Sharia Finance’ on Wednesday (12/8/2026).

“Sharia financing must become a strategic and competitive choice for corporate investment and expansion. To achieve this, we need to build a bankable, measurable, and sustainable financing pipeline, deepen the Islamic financial market and intermediation, and foster collaboration between corporations, the Islamic finance industry, regulators, ministries/institutions, and associations,” Destry said in an official statement on Thursday (13/8/2026).

Destry also stressed the importance of expanding capacity and innovation in financing instruments to support productive investment and the real sector. She further highlighted the need to strengthen governance, risk management, and monitoring.

The momentum for expanding sharia financing is supported by improving industry performance. Data shows that as of June 2026, sharia banking financing reached IDR 720 trillion, growing by 11.43 percent year-on-year (yoy), while Third-Party Funds (DPK) reached IDR 816 trillion, growing by 13.13 percent yoy. In the business sector, the halal supply chain grew by 5.5 percent during the same period, with outstanding corporate sukuk reaching approximately IDR 95 trillion. “This development opens up greater opportunities for sharia financing to support productive investment and real sector expansion,” Destry concluded.

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