ASIATODAY.ID, JAKARTA — Indonesia’s Islamic banking industry has reached a historic milestone, with total assets officially surpassing IDR 1,028.18 trillion (approximately USD 66 billion) as of October 2025, marking the highest level in the sector’s history.
The achievement was announced by Dian Ediana Rae, Chief Executive for Banking Supervision at the Financial Services Authority (OJK), in an official statement issued quoted on Monday December 15, 2025.
“OJK remains fully committed to supporting the development of a competitive, resilient Islamic banking industry that contributes meaningfully to national economic growth,” Dian said.
Double-Digit Growth Signals Strong Momentum
On a year-on-year (yoy) basis, Islamic banking assets grew by 11.34 percent, reflecting strong momentum despite ongoing global economic uncertainties. Growth was also evident across key performance indicators, all of which reached record highs.
Islamic financing reached IDR 685.55 trillion, up 7.78 percent yoy
Third-party funds (DPK) climbed to IDR 820.79 trillion, surging 14.26 percent yoy
These figures represent the highest financing and deposit levels ever recorded by Indonesia’s Islamic banking sector.
Improving Economic Outlook to Support Further Growth
Dian noted that the robust performance aligns with expectations of a stronger national economic outlook toward the end of 2025, which is expected to further support Islamic banking performance through year-end.
“These achievements confirm that the policy direction for Islamic banking development is on the right track,” she emphasized.
OJK will continue to ensure the consistent implementation of the Islamic Banking Development and Strengthening Roadmap (RP3SI) 2023–2027, aimed at accelerating growth while ensuring long-term sustainability.
Spin-Offs and Consolidation Key to Scaling Up the Industry
To strengthen the industry’s structural foundations, OJK continues to push for spin-offs of Islamic banking units and sector consolidation. This strategy is considered critical, as the majority of Islamic commercial banks (BUS) currently remain in the KBMI 1 category, indicating relatively limited capital scale.
Achieving greater scale is expected to enable Islamic banks to:
Expand financing to productive sectors
Develop more innovative business models
Improve cost efficiency
Strengthen information technology infrastructure
Enhance human capital quality
“With stronger economies of scale, Islamic banking will be better positioned to play a larger role in supporting Indonesia’s economic development,” Dian explained.
Leveraging Sharia-Compliant Products and Social Finance
Amid intensifying competition in the banking industry, OJK is also encouraging Islamic banks to become more agile by leveraging their distinctive Sharia-compliant products, strengthening synergies with parent banks, and optimizing Islamic social finance instruments, including zakat and waqf.
These initiatives are expected to reinforce Islamic banking’s socio-economic development orientation while expanding financial inclusion across all segments of society.
Looking ahead, OJK reaffirmed its commitment to safeguarding the sustainable and healthy growth of Islamic banking as part of broader efforts to maintain financial system stability and promote inclusive economic growth in Indonesia. (ATN)
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