Indonesian Islamic Banking Sector Eyes Gold Business Growth in 2026

Positive Outlook Following 2025 Surge

The Indonesian Islamic banking sector is entering 2026 with optimism regarding their gold-related businesses. This positive outlook follows a remarkable performance in 2025 when gold prices experienced a substantial surge. The gold price increase in 2025 was particularly noteworthy as it marked the largest annual percentage gain in 46 years, with prices rising by more than 64% and achieving their best yearly performance since 1979.

Strong Performance in Gold-Related Services

For Islamic banks that offer various gold-related financial services, including gold installment purchases and gold pawning, the rising gold prices created a favorable business environment. These banks reported a significant boost in their gold-related business activities during 2025. Some Islamic banks even recorded growth rates exceeding 50%, demonstrating the strong potential of gold-related banking products during periods of rising gold prices.

Market Dynamics and Future Prospects

The exceptional performance of gold prices in 2025 was a crucial factor driving the growth in Islamic banks' gold-related businesses. As the global economic environment continues to evolve, the demand for gold as a safe-haven asset remains strong. This trend is expected to continue into 2026, potentially providing further impetus to the gold-related services offered by Islamic banks.

Strategic Implications for Islamic Banking

The anticipated continuation of the gold price surge in 2026 presents both opportunities and challenges for Islamic banks. On one hand, sustained high gold prices could lead to continued growth in their gold-related business segments. On the other hand, banks will need to manage associated risks and ensure compliance with regulatory requirements while capitalizing on emerging opportunities in the gold market.