Islamic banking market share rises to 7.53 percent in September: OJK

Jakarta (ANTARA) - Indonesia's Islamic banking sector continued its upward trajectory in September 2026, with market share expanding to 7.53 percent from 7.44 percent the previous month, bolstered by robust double-digit financing growth, according to the Financial Services Authority (OJK).

Speaking at a monthly press briefing in Jakarta on Thursday (November 5), Deputy Chair of the OJK Board of Commissioners Hernawan Bekti Sasongko reported that total industry assets reached Rp1,108.45 trillion (approximately US$61.58 billion) as of September.

"As of September 2026, Islamic banking financing has maintained double-digit growth, reaching 12.05 percent year-on-year," Hernawan said.

OJK data indicates that total financing expanded by Rp8.62 trillion (US$478.89 million) month-on-month, climbing from Rp748.70 trillion (US$41.59 billion) in August to Rp757.32 trillion (US$42.07 billion) in September.

Year-on-year (yoy) financing growth also quickened from 11.61 percent in August.

Industry assets rose by Rp18.77 trillion (US$1.04 billion) from August's Rp1,089.68 trillion (US$60.54 billion).

Meanwhile, third-party customer deposits edged up to Rp853.75 trillion (US$47.43 billion) from Rp848.98 trillion (US$47.17 billion), although annual deposit growth moderated to 7.48 percent from 12.12 percent.

Financial soundness indicators remained solid. The gross non-performing financing (NPF) ratio for sharia commercial banks and business units improved to 2.28 percent from 2.30 percent, while the financing-to-deposit ratio (FDR) ticked up to 88.17 percent from 87.62 percent.

To fortify sector resilience, the OJK issued Regulations of the Board of Commissioners Members (PADK) Numbers 12 and 13 of 2026, setting stricter capital compliance standards and operational guidelines for Sharia Rural Banks (BPRS).

Governance standards were further reinforced through the annual Ijtima' Sanawi convention held alongside the Indonesian Ulema Council's National Sharia Council (DSN-MUI).

Outside traditional banking, OJK recorded sharia financing receivables in the multifinance sector at Rp32.17 trillion (US$1.79 billion) in September, up 7.91 percent yoy.

OJK Chief Executive for Supervision of Financing Institutions Agusman noted that the expanding halal ecosystem offers vast growth potential.

"The growth of the halal economy ecosystem and the Sharia financial industry presents a strategic opportunity for multifinance companies to further expand their Sharia-based financing," Agusman noted, encouraging firms to scale cross-sector partnerships and financial inclusion initiatives.

Complementing these metrics, Deputy Coordinating Minister for Economic Affairs Dradjad Hari Wibowo announced that disbursements for Sharia-compliant People's Business Credit hit Rp14.42 trillion (US$801.11 million) by late September, aiding over 146,000 MSME debtors.

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Translator: Aria Ananda, Yashinta Difa
Editor: Rahmad Nasution
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