Indonesia's Sharia Finance Assets Projected to Grow 8-11% in 2026
Indonesia sharia finance assets are projected to grow 8-11% in 2026, but structural challenges could limit market share, efficiency & competitiveness.
An economist from the Center for Sharia Economic Development predicts Indonesia's sharia financial industry assets will experience growth rates between 8 and 11 percent by 2026. Despite facing several structural challenges, Nur Hidayah maintains a positive outlook for the industry. The Financial Services Authority reported the sharia finance industry's total assets reached IDR 3,131.02 trillion in 2025, marking an 8.56 percent year-on-year growth and the highest level since the industry's inception.
However, Nur emphasizes the importance of growth in terms of market share, efficiency, and competitiveness. Three key issues impacting the sharia finance industry's prospects include its reliance on state support, concentration of players, and separation of sharia business units from parent banks. Nonetheless, Nur identifies the Muslim population and the growth of the middle class as potential growth drivers.
She also highlights the importance of product differentiation, improved governance, and the integration of Islamic social finance and the halal industry to bolster the industry's development.
Written by urgent.news from Tempo.co English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
