OJK Issues New Regulation on Sharia Investment Products, Reinforcing Separation of Customer Funds

JAKARTA - The Financial Services Authority (OJK) has issued a new regulation that reinforces the separation between savings products and investment products in Islamic banking through POJK Number 4 of 2026. This decision serves as a concrete step to boost the competitiveness of the Islamic banking industry so that it is no longer overlooked. In its press release on Thursday (7/5/2026), OJK stated that this POJK represents an important milestone. The regulation defines sharia investment products as funds entrusted by customers to Sharia Banks under certain contracts, where the investment risk is borne by the investor customer. “Sharia banking investment products consistently apply profit and risk sharing principles that reflect the true characteristics of investments,” states the official OJK explanation on Thursday (7/5/2026). The business model regulated by OJK is not new on the international stage. Countries with advanced sharia financial systems such as Malaysia, the United Arab Emirates, and Saudi Arabia have already implemented it through profit-sharing investment accounts. Through this product, bank customers have an alternative to pursue higher potential returns compared to ordinary savings, provided they are prepared for the accompanying risks. POJK 4/2026 strictly regulates: For sharia banks that already have investment products before this regulation is issued, OJK provides an adjustment period of up to two years from the date the regulation is enacted or until the contract period ends. This policy, which takes effect from 29 April 2026, is expected to make Indonesia’s sharia financial ecosystem more trustworthy, inclusive, and provide real contributions to the national economy.