Indonesian Islamic Stock Index Drops 36%, Corporate Sukuk Still Grows

Indonesia's Islamic finance sector experienced a mixed performance in the first half of 2026, with its stock index facing a significant downturn while corporate sukuk demonstrated robust growth. The Indonesian Sharia Stock Index (ISSI) corrected by over 30 percent, falling to 196.59 by the end of June from 215.57 in May. Market capitalization also dropped to Rp 4.92 trillion from Rp 6.13 trillion.

However, the Islamic bond market offered a bright spot, with corporate sukuk growing 15.23 percent year-to-date to Rp 101.64 trillion. This growth contrasts with the decline in the Islamic mutual fund sector, where Assets Under Management (AUM) decreased to Rp 81.64 trillion from Rp 83.71 trillion in the previous month. State sukuk remained stable at Rp 1,793.39 trillion.

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Despite a decline in the performance of the Indonesian Sharia Stock Index and the Asset Under Management of sharia mutual funds, corporate sukuk managed to grow 15.23 percent year to date.

Islamic banking also showed resilience. While total assets slightly decreased to Rp 1.047 trillion in May 2026 from Rp 1.055 trillion in April, and its market share dipped to 7.26 percent from 7.46 percent, the sector saw positive growth in financing. Islamic banking financing grew 10.32 percent year-on-year to Rp 729.45 trillion in May 2026.

The Financial Services Authority (OJK) reaffirmed its commitment to developing and strengthening Indonesia's Islamic financial services sector, recognizing its significant potential. The OJK continues to promote financial literacy and education to boost Islamic financial inclusion.

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In May 2026, Islamic banking financing reached Rp 729.45 trillion, a 10.32 percent increase.