OJK Indonesia’s Islamic Financial Claims continue to grow positively, literacy and assets skyrocketed

KABARJAWA – The Financial Services Authority (OJK) recorded positive growth in the Indonesian Islamic financial industry throughout the early 2025.

Chairman of the Board of Commissioners of the Financial Services Authority (OJK), Mahendra Siregar said that in early 2025, OJK noted that Islamic banking financing grew stable at around 9-9.9% yoy.

The details, sharia financing grew +9.77% in February 2025, +9.87% in December 2024, and +9.2% in April 2025. Sharia financing receivables also increased between 9.52-9.98% yoy.

“This indicates the strategic role of Islamic banks as an intermediary institution remains strong even in the midst of the challenges of the global economy,” he said.

Not only the financing sector, Islamic insurance also shows a positive trend. OJK recorded the contribution of sharia insurance increased +1.2% in February 2025 and jumped +8.13% during April to May 2025.

Funds under the management of Sharia Mutual Funds (AUM) also grew dramatically around 23.4% yoy to touch Rp54.9 trillion. This figure is proof that Islamic capital market instruments are increasingly in demand by the public.

Based on POJK No. 11/2023, OJK prepares industrial consolidation steps. Until 2025, 41 Sharia Business Units (UUS) insurance and reinsurance have submitted a spin-off plan.

Of these, 18 UUS will do spin-offs into new entities, while 8 Uus chose to melt their portfolios to other companies. OJK assesses that spin-off steps can strengthen the capital structure and sharia company governance in Indonesia.

To increase literacy and inclusion, OJK continues to hold massive education programs. The 2025 Sharia Motion Program which took place on February 23 -March 31 succeeded in reaching 250 luring participants and 300 online participants, as well as distributing social funds of Rp30.75 billion to 158,203 beneficiaries in 154 districts/cities.

OJK also held Syafif Goes to Tangerang on February 22-23, continued in Palembang on May 16-18. The activity involved dozens of Islamic financial services actors, opening hundreds of new accounts, and channeling billions of rupiah to the sharia productive economic sector.

In addition, OJK held Islamic financial literacy on campus, pesantren, as well as special training for PPDP Sharia lecturers in Palembang. Bank Indonesia (BI) helped encourage the literacy program through the launch of the 2024 KEKSI, which recorded the Islamic financial literacy index increased from 28% to 42.8%.

BI also reduced the requirements of the CWM and PLM for Islamic banks. The policy provides more loose liquidity space so that Islamic banks can increase financing to the productive sector.

On the other hand, BI encourages the strengthening of sharia monetary instruments to support national macroeconomic stability.

OJK did not remain silent. This institution formed the Islamic Financial Development Committee (KPKS) consisting of OJK, DSN-MUI, and academics. This committee focuses on accelerating the preparation of regulations and governance of sharia products in accordance with sharia principles and industrial needs.

OJK also completed the finalization of Istishna ‘, Salam and Multijasa Product Guidelines. In addition, OJK supports product innovations such as Cash Waqf Linked Deposit (CWLD) and Sharia Restricted Investment Account (SRIA) which is expected to encourage the integration of Islamic economic and finance as well as grow productive waqf.

The Head of OJK emphasized that his party continued to strengthen internal governance by implementing the Best Practices of Internal Audit to maintain institutional integrity.

OJK is committed to focusing on five main aspects: bank and UUS consolidation, preparation of product guidelines, strengthening governance, integration to the Islamic economic ecosystem, and support for sharia MSMEs to move up to class.