OJK Revamps Sharia Banking Investment Products: Clear Segregation from Deposits Introduced, with Investor Customers Now Responsible for Potential Losses

The Financial Services Authority (Otoritas Jasa Keuangan– “ OJK ”) has issued Regulation No. 4 of 2026 (“ Regulation 4/2026 ”) on the Implementation of Sharia Banking Investment Products (“ Investment Products ”). Regulation 4/2026 will now apply to sharia commercial banks (Bank Umum Syariah– “ BUS ”), sharia business units (Unit Usaha Syariah– “ UUS ”) and sharia people’s economic banks (Bank Perekonomian Rakyat Syariah– “ BPRS ”) (collectively referred to as “ Sharia Banks ”), as well as to various other types of financial institutions that act as investors (“ Institutional Investors ”).