OJK Updates Indonesia’s Sharia Finance Blueprint

The Financial Services Authority (“OJK”) is currently preparing an updated Indonesia Sharia Finance Blueprint as a strategic policy direction for the development of the national Sharia economy. This initiative is being undertaken in anticipation of the expiration of the previous Sharia Finance Blueprint in 2027. The preparation of this integrated framework is intended to provide clear and sustainable development guidance for the Sharia finance industry.

The planning document sets out an integrated, cross-sectoral development framework covering Sharia banking, the Sharia capital market, and the Sharia Non-Bank Financial Industry (Industri Keuangan Non-Bank -“IKNB”). Ayahandayani, Head of OJK’s Department of Regulation and Development of Micro-, Small-, and Medium Scales Enterprises (“UMKM”) and Sharia Finance, explained that the preparation of the Blueprint has been directly aligned with the Government’s medium- and long-term development targets.

“We are preparing this Blueprint as a reference for all sectors of the Islamic financial services industry, and it will refer to the 2025–2045 National Long-Term Development Plan (RPJPN) and the 2025–2029 National Medium-Term Development Plan (RPJMN),” she said.

Through the preparation of this Blueprint, the Sharia finance industry is expected to achieve healthier growth, enhance its competitiveness, and maintain the effective integration of its social and commercial functions. This integrated policy is also designed to optimize the channeling of financing to the real sector and accelerate the empowerment of UMKM throughout Indonesia.