Sharia Banking Industry Financing Grows by 9.82 Percent, Assets Reach IDR 1,061 Trillion

JAKARTA, KOMPAS.com - The Indonesian Financial Services Authority (OJK) stated that the sharia banking industry is growing solidly, resiliently, and sustainably, supported by increased intermediation functions and public trust in sharia banking services.

The Head of Banking Supervision at OJK, Dian Ediana Rae, revealed that as of March 2026, the sharia banking industry recorded double-digit asset growth of 10.49 percent year-on-year (yoy), reaching IDR 1,061.61 trillion.

In line with this, sharia banking financing grew by 9.82 percent yoy to IDR 716.40 trillion, higher than national growth, supported by the growth of Third Party Funds (DPK) by 11.14 percent yoy to IDR 811.76 trillion.

The industry’s performance remains stable with good financing quality, as reflected in the Gross Non-Performing Financing (NPF) and Net NPF ratios, which are at 2.28 percent and 0.87 percent respectively. “This growth momentum is an important milestone in the efforts to transform and strengthen the national sharia banking industry, referring to the Indonesian Sharia Banking Development and Strengthening Roadmap (RP3SI) 2023-2027,” said Dian in an official statement on Saturday (May 16, 2026). He added that after being issued in 2023, RP3SI 2023-2027 has had a positive impact on the development of national sharia banking.

The OJK consistently oversees the implementation of this RP3SI through various strategic steps with stakeholders to strengthen the transformation and competitiveness of national sharia banking.

Dian explained that in an effort to strengthen the structure and resilience of the sharia banking industry, there are currently three large-scale sharia banks filling positions in Group 2 and 3 based on core capital (KBMI).

This year, it is also expected that one new Sharia Commercial Bank (BUS) will be formed as a result of the spin-off process, which will strengthen the structure of the national sharia banking industry in KBMI group 2.

In line with these efforts, industrial consolidation continues in the Sharia Rural Banking (BPR) sector through the merger of 21 BPR/BPR Syariah, targeting 9 stronger, more efficient, and competitive Sharia BPRs. “These various steps further strengthen the structure of the sharia banking industry, which is a form of implementation of the first pillar in RP3SI, namely Strengthening the Structure and Resilience of the Sharia Banking Industry,” he added.

Dian revealed that the OJK continues to encourage the development of unique sharia products and business models as a form of implementing the third pillar of RP3SI, Strengthening the Characteristics of Sharia Banking.

This is realized through the issuance of nine guidelines for sharia banking products as a reference for standardization and implementation of sharia-based products and POJK Number 4 of 2026 concerning the Organization of Sharia Banking Investment Products to support the development of innovative sharia-based investment products.

Furthermore, the OJK has also formed the Committee for the Development of Islamic Finance (KPKS) in 2025 to accelerate the development of Islamic finance and among other things through the development of unique sharia products.

Dian said that KPKS has currently issued several recommendations, including adjustments to the ratio of interest-based debt on the Sharia Securities List, the issuance of Fatwa No. 166/DSN-MUI/II/2026 concerning Bullion Business Activities, and encouraging the placement of government funds in Islamic financial institutions.

Dian said that the development of unique sharia products shows positive progress, including through the realization of Cash Waqf Linked Deposit (CWLD) at 9 BUS, 3 UUS, and 9 BPR Syariah with a total project value reaching IDR 907.73 million and a total fund raised of IDR 22.76 billion.

In addition, Sharia Restricted Investment Account (SRIA) has been implemented by 1 BUS and 1 UUS with a total pilot nominal of IDR 1.35 trillion.

The development of sharia banking is also carried out through synergy with various stakeholders in the Islamic economic and financial ecosystem.