OJK urges Islamic finance firms to focus on customer needs

Indonesia’s Financial Services Authority (OJK) has called on Islamic financial institutions to compete through innovation and products that meet customers’ needs, rather than relying on compliance with Islamic principles alone.

Speaking at the International Islamic Finance Conference (IIFC) 2026 in Makassar on 2 November, OJK deputy chairman Hernawan Bekti Sasongko said institutions should consider users’ preferences when developing products instead of designing them solely from an internal perspective.

Hernawan said Islamic financial services needed competitive advantages alongside Sharia compliance to become more relevant and reach more individuals and businesses. He noted that wider use of those services had not fully kept pace with the expansion of Indonesia’s halal industry.

OJK is encouraging providers to deepen their links with the real economy by developing financing, investment and transaction services suited to businesses throughout the halal value chain.

Hernawan identified three mutually supporting requirements: a healthy, innovative Islamic finance industry; greater use of its services by the real sector; and government policy support. He said these were expected to strengthen the industry’s contribution to the national halal economy and support more inclusive, sustainable economic activity.