Executive Summary

Key insights and market outlook

Sharia financing in Indonesia has demonstrated robust growth of 10.16% YoY as of October 2025, outpacing conventional financing growth of 0.68% YoY ¹

. This growth is attributed to regulatory support through POJK No. 19/2025 and strong demand in the automotive sector, particularly new car financing ². The total Sharia financing receivables reached Rp 30 trillion, showing significant improvement from September's 7.8% growth.

Full Analysis

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Deep Dive Analysis

Sharia Financing Outpaces Conventional Growth in Indonesia

Strong Regulatory Support and Market Demand

The Sharia financing sector in Indonesia has demonstrated remarkable resilience and growth, outpacing its conventional counterpart. As of October 2025, Sharia financing receivables grew by 10.16% year-on-year, reaching Rp 30 trillion ¹

. This performance significantly surpasses the growth of conventional multifinance receivables, which only managed a 0.68% YoY increase to Rp 505.30 trillion during the same period ¹.

Regulatory Environment and Market Potential

Industry experts attribute this robust growth to both regulatory support and inherent market potential. The recent introduction of POJK No. 19/2025, aimed at facilitating easier access to financing for UMKM (Micro, Small, and Medium Enterprises), has been a significant catalyst ²

. According to Ristiawan Suherman, President Director of PT CIMB Niaga Auto Finance (CNAF), these regulatory measures are expected to further boost Sharia financing growth.

Sectoral Performance and Future Outlook

The growth in Sharia financing is particularly notable in the automotive sector, with new car financing being a major driver. CNAF remains optimistic about continued growth in this segment, supported by both regulatory backing and strong market demand ²

. The significant jump from September's 7.8% growth to October's 10.16% indicates a positive trend that is expected to continue into the coming months.

References