CIMB Niaga Syariah Eyes Spin-off to Boost Islamic Banking Market Share

Potential Impact on Indonesia's Islamic Banking Sector

CIMB Niaga Syariah is contemplating a significant strategic move - spinning off from its parent bank, CIMB Niaga, to become an independent Islamic bank. This potential development is expected to have far-reaching implications for Indonesia's Islamic banking landscape. As of October 2025, the combined assets of Islamic banks (BUS) and sharia business units (UUS) stood at Rp 1,397 trillion, representing about 10.6% of the total banking assets in Indonesia ¹

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Current Challenges in Islamic Banking Growth

The growth of Islamic banking in Indonesia has been relatively slow compared to conventional banking. Despite efforts to expand, the market share remains limited. According to Otoritas Jasa Keuangan (OJK) data, the total assets of conventional banks in the same period reached Rp 13,219 trillion, highlighting the significant gap between Islamic and conventional banking in Indonesia ²

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Strategic Projections and Future Outlook

Pandji P. Djajanegara, Director of Syariah Banking at CIMB Niaga, projects that the Islamic banking market share could potentially grow to 10-15% by 2030 if current initiatives bear fruit ³

. The spin-off of major sharia business units into full-fledged Islamic banks is seen as a key catalyst for this growth. It is expected to create larger, more competitive Islamic banks that can drive market expansion and deepen financial inclusion.

Key Drivers of Growth

Several factors are expected to contribute to the potential acceleration of Islamic banking growth:

1. Regulatory Support: Ongoing regulatory enhancements are creating a more conducive environment for Islamic banking
2. Industry Consolidation: Spin-offs and mergers are likely to create larger, more competitive players
3. Product Innovation: Development of new sharia-compliant financial products
4. Increased Competition: Emergence of larger Islamic banks will foster healthy competition