Total Assets Of Sharia Banks Reaches IDR 980.3 Trillion By The End Of 2024

JAKARTA - Sharia banking assets reached IDR 980.30 trillion at the end of 2024 or grew by 9.88 percent year on year (yoy) in December 2024 with market shares recorded an increase to 7.72 percent.

OJK Banking Supervision Chief Executive Dian Ediana Rae said that OJK sees that Islamic banking and Islamic finance opportunities are still wide open amid strong global and domestic economic challenges.

This opportunity is open by utilizing the niche market and continuing to encourage alternative financial products that have the uniqueness of sharia in addition to general banking products that are competitive with conventional banking.

"Static and coordinated efforts among all stakeholders need to be continuously improved to achieve a significant level of Islamic banking market share through organic and inorganic efforts," said Dian strengthens Antara.

In terms of intermediation, OJK noted that the total distribution of financing was recorded at IDR 643.55 trillion or grew 9.92 percent yoy. This growth is in line with the growth of the national banking industry.

Meanwhile, third party funds (DPK) were raised amounting to Rp753.60 trillion. This figure grew by about 10 percent yoy, far above the growth of the national banking industry which is in the range of 4-5 percent.

The financing disbursed is dominant for the housing sector (KPR) with a proportion of around 23 percent. Meanwhile, the distribution of micro, small and medium enterprise financing (MSMEs), reached around 16-17 percent of the total financing.

The level of Islamic bank capital remains strong, supported by adequate liquidity. The capital adequacy ratio (CAR) rate is recorded at 25.4 percent and is above the provisions.

The ratio of liquid/non-core deposit (AL/NCD) and third party liquid/funds (AL/DPK) is 154.52 percent and 32.09 percent, respectively, still above the threshold of 50 percent and 10 percent, respectively.

The financing quality is maintained with Gross's NPF ratio at 2.12 percent and Nett's NPF at 0.79 percent.

Meanwhile, the level of profitability continues to grow with an indicator of return on assets (ROA) of 2.04 percent. This shows that the acceleration of the Islamic banking business remains strong amid the dynamics of the domestic and global economy.

This year, there are five policy directions that will be encouraged by the OJK to increase the economic of scale as well as the uniqueness of the Islamic banking industry business model to be able to compete at the national and global levels.

One of them is regarding the consolidation of Islamic banks and strengthening sharia business units (UUS) carried out by supporting the spin-off process through coordination with stakeholders in the licensing process as well as the ease of Islamic commercial banks (BUS) from spin-off to synergize with the parent bank.

"OJK also encourages shareholders to support consolidation in order to produce large-capacity BUSes," said Dian.

Other policies include finalizing the formation of the Sharia Financial Development Committee (KPKS), continuing the preparation of guidelines for Islamic banking products, strengthening the role of Islamic banking in the Islamic economic ecosystem, and increasing the role of Islamic banking in the MSME sector.

The five directions, according to the OJK, are expected to be a game changer for the development of the national sharia banking industry and increase the contribution of the industry in creating quality, inclusive, and sustainable national economic growth.