The Financial Services Authority (OJK) continues to support and accelerate the development and strengthening of the national sharia banking industry by increasing its resilience and competitiveness, as well as its contribution to national social and economic development.
“We will continue to oversee the transformation of sharia banking to move forward from sharia banking which is an alternative to conventional banks (Shari’ah-compliant banking), towards sharia banking which has a unique business model and also provides socio-economic impact (Shari’ah-based Banking),” said OJK Chief Executive of Banking Supervision Dian Ediana Rae in a statement in Jakarta, Saturday.
At the peak of the 2024 Sharia Banking Annual Meeting in Banda Aceh (25/10), he said, in accordance with the concept of sharia banking transformation in the 2023-2027 Roadmap for the Development and Strengthening of Indonesian Sharia Banking (RP3SI), sharia banking is encouraged to have strong characteristics by providing positive impact on community welfare.
According to him, to support the government’s program in developing sharia economics and finance as stated in the National Long Term Development Plan (RPJPN) 2025-2045, sharia banking must play a more dominant role.
Based on OJK data, the current condition of sharia banking reflects conditions that are maintained stable and showing positive growth. Sharia banking assets, financing and Third Party Funds (DPK) continue to record double digit growth.
As of August 2024, assets grew by 10.37 percent year on year (yoy) to IDR 902.39 trillion. Meanwhile, financing grew by 11.65 percent yoy to IDR 620.33 trillion and DPK also grew 11.42 percent yoy to IDR 705.18 trillion.
Apart from that, the resilience of Islamic banking remains strong, reflected in its capital (CAR) which is at the level of 25.6 percent. This resilience is also supported by good financing quality and stable profitability.
In the short term, during 2024-2025, OJK focuses the development of sharia banking on five areas, namely consolidating sharia banks, establishing a Sharia Finance Development Committee, preparing product guidelines and developing product uniqueness, strengthening the role of sharia banking in the sharia economic ecosystem, and increasing the role of banks. sharia on the development of MSMEs.
At the meeting in Banda Aceh, Dian also launched three sharia banking product guidelines, namely the Mudarabah Financing Product Guidelines, the Shariah Restricted Investment Account (SRIA) Implementation Guidelines with the Mudharabah Muqayyadah Agreement, and the Cash Waqf Linked Deposit (CWLD) Implementation Guidelines.
“The launch of these product guidelines is a concrete form of OJK support in developing uniqueness and differentiation of sharia banking products to strengthen the competitiveness of national sharia banking,” said Dian.
Currently there are several sharia banks that have implemented CWLD, namely KB Bank Syariah, Bank Riau Kepri Syariah, Bank BJB Syariah, UUS Bank Jatim, and BPRS Hijra Alami.
Meanwhile, several sharia banks are in the process of developing CWLD, namely Bank Syariah Indonesia, Bank NTB Syariah, Bank Aceh Syariah, UUS Bank Sumselbabel, UUS Bank Nagari, BPRS Artha Madani, BPRS Barokah Dana Sejahtera, and BPRS Baktimakmur Indah. (Ant/D-2)
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