Indonesia's Financial Services Authority urges Islamic finance innovation driven by consumer needs and closer links with halal industries

Indonesia's Financial Services Authority (OJK) has urged Islamic financial institutions to develop products around consumer needs and strengthen their links with halal industries. Speaking at the International Islamic Finance Conference during the Indonesia Islamic Finance Summit 2026 in Makassar, OJK Board of Commissioners Vice Chairman Hernawan Bekti Sasongko highlighted that growth in halal industries had not been matched by increased use of Islamic financial services. He called for competitive products that meet consumer preferences alongside Sharia requirements, including financing, investment and transaction services tailored to businesses across the halal value chain. The emphasis continues themes outlined at the 2025 summit, including product diversification, stronger connections with the real economy and digital access. At the 2026 summit's High Level Forum, OJK outlined implementation priorities under its Blueprint for the Development and Strengthening of Islamic Finance, with progress to be evaluated every six months. Priorities include strengthening and consolidating Islamic banks. A development roadmap is also being prepared for Islamic financing institutions, venture capital companies, microfinance institutions and other financial services institutions, alongside efforts to improve governance and access through product innovation and digital technology. Alternative credit scoring was highlighted as a way to expand financing for individuals and micro, small and medium-sized enterprises without formal credit histories. OJK is also exploring sovereign sukuk tokenization with the Ministry of Finance, focusing on clearly identified underlying assets, appropriate contractual arrangements, and verifiable economic rights and benefits.