Spin-off of Sharia Business Units Accelerated, OJK Wants Sharia Banks to Have Larger Scale

JAKARTA — The Financial Services Authority (OJK) continues to promote the strengthening of the national sharia banking industry’s structure through various consolidation measures. This effort aligns with the implementation of the 2023–2027 Roadmap for the Development and Strengthening of Indonesian Sharia Banking (RP3SI), which positions consolidation as a primary strategy to enlarge the business scale of sharia banks and boost the industry’s competitiveness. OJK’s Executive Head of Banking Supervision, Dian Ediana Rae, emphasised that the authority consistently supports and encourages consolidation in the banking industry, including the sharia banking segment. According to Dian, this step is expected to produce healthy sharia commercial banks (BUS) with a larger business scale. Consequently, the national sharia banking industry’s structure can become stronger and more competitive in facing the dynamics of the national banking market. “In line with the 2023–2027 Roadmap for the Development and Strengthening of Indonesian Sharia Banking (RP3SI), OJK consistently supports and encourages banking consolidation, including consolidation in the sharia banking industry, which is carried out, among others, through spin-offs of Sharia Business Units (UUS) and may also be followed by business mergers with other sharia banks to produce healthy BUS with a larger business scale,” Dian stated in a written response during the OJK Board of Commissioners Meeting, quoted on Thursday (19/3/2026). This bank is the result of the spin-off of the Sharia Business Unit owned by PT Bank Tabungan Negara (Persero) Tbk (BBTN). The presence of BSN is seen as an important step in strengthening the sharia financial industry ecosystem in Indonesia. The spin-off process also marks the seriousness of the regulator and industry players in accelerating the transformation of the sharia banking structure, which has so far been dominated by sharia business units under conventional banks. “At the end of 2025, PT Bank Syariah Nasional (BSN) emerged as a tangible result of the spin-off process of the Sharia Business Unit (UUS) owned by PT Bank Tabungan Negara (Persero) Tbk (BTN), which is an important step in strengthening the sharia financial industry ecosystem in Indonesia,” Dian said. Furthermore, Dian explained that the ongoing spin-off processes in several banks are expected to produce sharia commercial banks with sufficiently large business capacities. Such capacity is a crucial factor in building a more robust and highly competitive industry.