Indonesia’s Islamic banking sector reached a historic milestone as total assets hit Rp1,028.18 trillion in October 2025 (11/12), growing 11.34 percent year-on-year. This is the highest level in the history of the country’s Islamic banking industry.

Record Financing and Deposits Highlight Industry Growth

Financing disbursement reached Rp685.55 trillion, an increase of 7.78 percent year-on-year, while third-party funds (Dana Pihak Ketiga/DPK) grew 14.26 percent to Rp820.79 trillion. Both figures mark all-time highs for Islamic banking in Indonesia and reflect positive economic expectations toward the end of 2025.

OJK Ensures Sustainable Development through Industry Roadmap

Dian Ediana Rae, Executive Head of Banking Supervision at OJK, said, “Various achievements indicate that the policy direction for developing Islamic banking is on the right track. OJK continues to ensure the implementation of the Indonesian Islamic Banking Development and Strengthening Roadmap (RP3SI) 2023-2027 to support an accelerated and sustainable banking industry.”

Consolidation and Spin-offs Strengthen Banking Scale

OJK plans to promote spin-offs and consolidation to build banks with a larger economic scale, as most Islamic Commercial Banks (BUS) are still in the KBMI 1 group. Larger scale will allow banks to expand financing, develop innovative business models, increase efficiency, strengthen IT infrastructure, and improve human resource quality.

Innovation and Social Finance Boost Agility and Inclusivity

Islamic banks are encouraged to utilize unique Shariah products, collaborate with parent banks, and optimize social finance. These initiatives aim to strengthen the socio-economic role of Islamic banking and improve access for all segments of society.

OJK will continue to supervise national Islamic banking to ensure the industry grows sustainably and remains healthy, supporting financial system stability and inclusive economic growth.

PHOTO: FREEPIK

This article was created with AI assistance.