OJK Chief Reveals Indonesia to Have Five Jumbo Islamic Banks by 2027

The Financial Services Authority (OJK) is targeting the emergence of five large-asset Islamic banks in Indonesia, including PT Bank Syariah Indonesia Tbk (BSI).

OJK’s Chief Executive of Banking Supervision, Dian Ediana Rae, stated that the regulator wishes to see more Sharia banks with a business scale approaching that of PT Bank Syariah Indonesia Tbk (BSI). According to him, the process towards this target is currently underway, and realisation is expected to be achieved by 2027 at the latest.

“I want to see at least five banks that are close to BSI, and we are moving towards that. God willing, if not by 2026, then by 2027, that realisation may have been achieved,” said Dian following the launch ceremony of the Indonesian Banking Development & Strengthening Roadmap (RP3I) in Bali on Friday.

Dian explained that the formation of these Islamic banks could be achieved through various schemes, such as the full conversion of conventional banks into Sharia banks or through spin-offs.

In addition to encouraging the birth of large-asset Sharia banks, OJK also emphasised the importance of strengthening the business scale of banks resulting from spin-offs. According to Dian, Sharia banks formed through spin-offs that remain small-scale will be encouraged to undergo consolidation.

“But certainly, if a spin-off results in a small entity, we will definitely mandate a merger with other banks,” said Dian.

BSI is currently the largest Islamic bank in Indonesia. Its assets increased by 11.64% year-on-year (YoY) to Rp456 trillion by the end of 2025.