Sharia Banks' Competitiveness in the Spotlight, Consolidation to be Accelerated
The Financial Services Authority (OJK) has affirmed that strengthening the sharia banking industry will be pursued through consolidation, with the spin-off of Sharia Business Units (UUS) as the initial stage. This step is deemed essential to enable sharia banks to achieve a larger business scale and greater competitiveness.
OJK’s Executive Head of Banking Supervision, Dian Ediana Rae, stated that separating UUS into sharia commercial banks (BUS) does not end with structural changes but is directed towards encouraging business mergers.
“The spin-off is expected to serve as an entry point for consolidation, so that in the future, sharia banks with stronger capacity are formed,” said Dian in a written response to RDKB in February, quoted on Monday (23/3/2026).
According to her, the current sharia industry structure remains fragmented and lacks optimal economies of scale. Therefore, consolidation is seen as the key to strengthening capital, efficiency, and competitiveness. OJK notes that initial steps are already visible with the establishment of PT Bank Syariah Nasional at the end of 2025, resulting from the spin-off of PT Bank Tabungan Negara (Persero) Tbk’s Sharia Business Unit. Nevertheless, OJK has not detailed the number of sharia banks that will undergo consolidation. The regulator only affirms that policy direction will encourage spin-offs followed by gradual business mergers.
On the other hand, OJK is also promoting the strengthening of sharia business from the perspective of public fund mobilisation. Products based on needs, such as umrah savings, are considered one entry point to expand sharia financial inclusion.
OJK emphasises that every innovation must prioritise principles of prudence and consumer protection, including product information transparency and risk management. With this strategy, OJK hopes the sharia banking industry will not only grow but also become more solid and capable of reaching society’s needs more broadly.