OJK Establishes New Department for UMKM and Sharia Finance Development

Enhanced Regulatory Framework for Syariah Finance

The Financial Services Authority (OJK) has officially formed a new department dedicated to the development of UMKM (Micro, Small, and Medium Enterprises) and sharia finance. This strategic move aims to strengthen the regulatory framework and enhance the growth of the syariah financial sector in Indonesia. The new department, established in December 2025, is expected to play a crucial role in integrating policies across various sectors related to syariah finance and UMKM development ¹

Industry Response and Expectations

Industry players have welcomed the establishment of this new department, viewing it as a positive step towards improving access to financing for UMKM through sharia-compliant financial products. Hanie Dewita from PT Bank Mega Syariah noted that the OJK's focus on UMKM development will create more opportunities for sharia banks to disburse financing more aggressively while maintaining prudence. Anggoro Eko Cahyo from PT Bank Syariah Indonesia emphasized the importance of synergy between banks, government, and off-takers to help UMKM grow sustainably ¹

Policy Integration and Future Prospects

The new department is expected to unify previously fragmented policies across different sectors, including sharia banking, capital markets, and non-bank financial institutions. Sutan Emir Hidayat from KNEKS highlighted that this integration will create a more coordinated approach to syariah economic development, potentially accelerating national programs for UMKM through various financial instruments like sharia banking financing, sukuk issuance for UMKM, and sharia crowdfunding ²

Challenges and Opportunities in P2P Lending

In related developments, the OJK is also overseeing the consolidation of sharia peer-to-peer (P2P) lending platforms. Agusman, OJK's Executive Head of Supervision, mentioned that two sharia P2P lending companies are exploring merger options to meet the minimum capital requirement of Rp12.5 billion. This consolidation is seen as a step towards strengthening the industry's structure and enhancing consumer protection ³