Indonesia's Sharia Banking Financing Hits Rp720 Trillion in June 2026

Indonesian sharia banking has shown robust growth, with financing reaching Rp720 trillion as of June 2026, marking an 11.43% increase from the previous year. Concurrently, third-party funds held by Islamic banks saw a significant rise of 13.13% year-on-year, totaling Rp816 trillion.

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These positive trends have created wider opportunities for Islamic financing. [This will help] support productive investment and real-sector expansion.

Bank Indonesia Acting Governor Destry Damayanti highlighted that these positive trends create substantial opportunities for Islamic financing, which will support productive investments and the expansion of the real sector. She stressed the importance of enhancing the connection between the halal industry and the Islamic finance sector to broaden corporate credit access and foster competitive, innovative, and sustainable business growth.

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Strengthening connectivity between the halal industry with the Islamic finance sector remains key to broadening corporate credit access, particularly in fostering competitive, innovative, and sustainable business growth.

During a Strategic Forum on Sharia Financing, the central bank facilitated a business matching session, connecting 20 Islamic Commercial Banks and Islamic Business Units with 51 corporations. This initiative aimed to explore tailored financing solutions and strengthen the role of Islamic economic sectors in driving national economic growth.

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Sharia financing needs to be a strategic, competitive alternative for corporate investment and expansion. Therefore, it is necessary to build a bankable, measurable, and sustainable financing pipeline.

Destry emphasized that sharia financing must be a strategic and competitive alternative for corporate investment. This requires building a "bankable, measurable, and sustainable financing pipeline," alongside enhancing institutional capacity, innovating financial instruments, and bolstering governance and risk management. Industry representatives echoed these sentiments, stressing the need for long-term sharia financing with suitable schemes and an ecosystem-centric strategy linking corporations with their supply chains to facilitate working capital and build long-term partnerships.

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This approach allows Islamic banks to extend working capital financing while simultaneously building long-term partnerships with the business community.