Islamic finance assets in Indonesia reach $10.66 trillion, but market share shrinks

Indonesia's Islamic finance sector is experiencing a shrinking market share despite a rise in its total assets. As of April 2026, the total assets in the Islamic finance sector reached Rp 10,662 trillion, marking a 6.4% year-on-year growth. However, this growth rate lags behind the broader national financial sector, which expanded by 8.7%. Consequently, the market share of Islamic finance has declined by 0.5% compared to the previous year. Eka Jati R Firmansyah, Deputy Director of the National Committee for Islamic Economy and Finance (KNEKS), attributed the slowdown to a decrease in the capitalization of Islamic stocks since the beginning of the year. He noted that while the growth of Islamic finance remains positive, it is slightly lower than the national financial sector's growth. "This is a concern that needs attention so that the market share of Islamic finance can increase again," Eka stated during a webinar hosted by the Islamic Economics Scholars Association (IAEI) in Jakarta on Friday. The shrinking market share, despite asset growth, indicates a need for strategies to boost the competitiveness and expansion of the Islamic finance industry within the national financial landscape.

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This is a concern that needs attention so that the market share of Islamic finance can increase again.