Indonesia's Financial Services Authority urges sharia compliance by design for digital financial assets and crypto assets

Indonesia's Financial Services Authority (OJK) outlined a phased approach to developing sharia digital financial assets and crypto assets at sector forums of the Indonesia Islamic Finance Summit 2026 in Makassar. Adi Budiarso, chief executive overseeing financial sector technology innovation, digital financial assets and crypto assets, urged developers to incorporate sharia principles from product design rather than rely on labels. The discussions align with OJK's blueprint, launched earlier at the summit, to integrate Islamic finance development across sectors. Sharia compliance should reflect clear assets and economic benefits, appropriate contracts and transparent transactions, supported by adequate governance and oversight. Foreign sharia certification does not automatically allow a product to be offered in Indonesia, while regulatory sandbox testing remains distinct from sharia compliance assessment by relevant institutions. OJK is preparing a sharia development roadmap for 2027–2031, alongside work on business model classification, product risks and coordination with the National Sharia Board of the Indonesian Ulema Council. Potential initial models for further study include tokenization of sukuk, gold and sharia real assets with clear underlying assets, economic benefits and transaction structures. Other summit forums examined securities crowdfunding as alternative financing for small and midsize businesses and gold exchange traded funds as an investment option. The Friends of the Mosque program addressed insurance for mosque assets and communities, alongside sharia pensions for mosque workers. Insurance and pension fund industry associations signed a joint commitment to support community Islamic finance, including through mosque networks.