# Indonesian banking and sharia finance development

> Live situation record from CLSTR: https://clstr.news/situations/indonesian-banking-and-sharia-finance-development
> Updated: 2026-10-16T14:35:59.000Z. Sources: 23. Developments: 7.

The Indonesian financial sector continues to evolve through institutional shifts and strategic ESG-focused expansions. PT Bank Syariah Indonesia (BSI) has significantly increased its commitment to sustainable finance, reporting Rp78.6 trillion in environmental, social, and governance (ESG) financing as of June 2026. This figure constitutes 23.1 percent of the bank’s total financing, representing a 7.09 percent growth from the previous period. To support these initiatives, BSI has strengthened its sustainable funding through the issuance of Rp8 trillion in sustainable sukuk and Rp1.5 trillion in sustainability-linked financing for the Bali Mandara Toll Road project.

During the 13th Indonesia Sharia Economic Festival (ISEF) 2026, held from October 14–18 in Jakarta, the sharia economic ecosystem demonstrated significant momentum. Business matching for sharia financing and trade reached Rp3.16 trillion, consisting of Rp2.6 trillion in financing and Rp558.4 billion in trade. Furthermore, commitments regarding the sharia money market and foreign exchange cooperation totaled Rp6.05 trillion. Notable individual transactions included Bank Mega Syariah signing financing agreements worth approximately Rp196.9 billion.

To bolster the ecosystem, Bank Indonesia (BI) introduced several initiatives: the Islamic Financial Market Code of Conduct (ICoC) to enhance market integrity, the Zakat Core Principles (ZCP) 2.0 to improve zakat governance, and an international scholarship program funded by sharia social funds. BI continues to aim for a sharia financial market share of 12% to 15% by 2028. In the banking sector, BCA Syariah has utilized SiPA transactions to strengthen interbank liquidity. Additionally, the festival highlighted regional successes in Muslim-friendly tourism, with West Java securing first place in the Indonesia Muslim Travel Index (IMTI) 2026.

## Timeline

### 2026-10-16: Indonesia Sharia Economic Festival 2026 drives halal industry growth

The ISEF 2026 festival in Jakarta recorded Rp3.16 trillion in sharia business matching and launched new programs to strengthen Indonesia's halal industry, digital payments, and zakat governance.

10 sources. https://clstr.news/cluster/indonesia-sharia-economic-festival-2026-highlights-halal-industry-growth

### 2026-10-14: Bank Indonesia sees major growth potential in sharia economy

Bank Indonesia Governor Destry Damayanti reports growing global interest in Indonesia's sharia finance, noting a shift toward sukuk and the success of Green Sukuk issuances.

3 sources. https://clstr.news/cluster/bank-indonesia-sees-major-growth-potential-in-sharia-economy

### 2026-10-13: Bank Indonesia uses Roblox to promote sharia economy to youth

Bank Indonesia is using the Roblox platform and creative video competitions to introduce sharia economic principles to younger generations during ISEF 2026.

6 sources. https://clstr.news/cluster/bank-indonesia-uses-roblox-to-promote-sharia-economy-to-youth

### 2026-10-09: Bank Syariah Indonesia reports Rp 78.6 trillion in ESG financing

Bank Syariah Indonesia (BSI) reported Rp 78.6 trillion in ESG-based financing through June 2026, comprising green and social financing initiatives.

2 sources. https://clstr.news/cluster/bank-syariah-indonesia-reports-rp-786-trillion-in-esg-financing

### 2026-10-06: Indonesian banks announce strategic expansions and management changes

Indonesian banks BSI, BRI, and Bank Raya announce various initiatives, including ESG recognition, youth financial literacy programs with Mobile Legends, and management restructuring.

10 sources. https://clstr.news/cluster/bank-syariah-indonesia-expands-sme-support-and-saudi-market-access

### 2026-10-06: Bank Indonesia targets 15% sharia financial market share by 2028

Bank Indonesia targets a 12–15% national sharia financial market share by 2028 through strategic initiatives to strengthen the halal value chain and boost financial literacy and inclusion.

3 sources. https://clstr.news/cluster/bank-indonesia-targets-15-sharia-financial-market-share-by-2028

### 2026-10-04: Indonesian banking sector shows mixed results for BSI and BCA

Bank Syariah Indonesia reported a 10.07% profit increase to Rp5.3 trillion by August 2026, while Bank Central Asia faces stock price pressure due to foreign capital outflows and rising risk premiums.

3 sources. https://clstr.news/cluster/indonesian-banking-sector-shows-mixed-results-for-bsi-and-bca

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Cite as: Indonesian banking and sharia finance development. CLSTR, https://clstr.news/situations/indonesian-banking-and-sharia-finance-development