Jakarta, 31 October 2025. Indonesia Financial Services Authority (OJK) has issued two new OJK Regulations (POJK) aimed at strengthening the resilience and competitiveness of Indonesia’s Sharia banking industry. These include POJK 20/2025 concerning the Obligation to Fulfill the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) for Sharia Commercial Banks (Bank Umum Syariah/BUS) and Sharia Business Units (Unit Usaha Syariah/UUS), and POJK 21/2025 concerning the Obligation to Fulfill the Leverage Ratio for BUS.
These regulations mark an important step in reinforcing the capital structure, liquidity, and long-term funding stability of BUS and UUS, aligning Indonesia’s Sharia banking practices with the international standards under Basel III and the Islamic Financial Services Board (IFSB).
POJK 20/2025
Through POJK 20/2025, OJK enhances short-term liquidity management and long-term funding stability within the Sharia banking industry by requiring BUS and UUS to maintain a minimum Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) of 100 percent, to be implemented in stages.
This regulation ensures adequate short-term liquidity and stable long-term funding so that BUS and UUS can better anticipate liquidity needs arising from economic fluctuations and financial market volatility.
Under this regulation, BUS and UUS are also required to regularly calculate and monitor their liquidity adequacy and net stable funding ratios—both at the individual and consolidated levels—to ensure that liquidity risks are managed in a measurable and transparent manner. Reporting and publication of these ratios will be implemented gradually from 2026 to 2028, in line with industry readiness and the harmonization of Sharia financial reporting systems.
This POJK was developed in reference to Basel III: The Liquidity Coverage Ratio and Liquidity Risk Monitoring Tools and The Net Stable Funding Ratio, while also taking into account Guidance Note GN-6 from the IFSB. The adoption of these principles ensures that Indonesia’s Sharia financial system aligns with global best practices, thereby strengthening the credibility and competitiveness of BUS and UUS at the international level.
Through this regulation, BUS and UUS are expected to manage liquidity and funding more prudently, optimize the composition of assets and liabilities, and enhance their capacity to respond to multiple stress scenarios without disrupting intermediation functions.
At the same time, this strengthening of liquidity and funding management forms part of the implementation of the Roadmap for the Development and Strengthening of Sharia Banking in Indonesia (Roadmap Pengembangan dan Penguatan Perbankan Syariah Indonesia/RP3SI) 2023–2027, particularly Pillar I on strengthening the structure and resilience of the Sharia banking industry, and Pillar V, which focuses on strengthening the regulation, licensing, and supervision of Sharia banking.
POJK 21/2025
POJK 21/2025 aims to reinforce the capital structure resilience of Sharia Commercial Banks by introducing an additional indicator in the form of the Leverage Ratio, consistent with the latest international standards.
The leverage ratio is intended to increase the industry’s fundamental awareness of the need to develop business proportionally to its capital capacity—without relying on risk-weighted asset calculations or risk mitigation adjustments. The implementation of the leverage ratio is expected to help BUS anticipate deleveraging impacts under multiple stress scenarios.
This regulation adopts the Basel III (2014 and 2017) standards and IFSB-23 (2021), reflecting OJK’s commitment to adopting international best practices in capital measurement. It also supports the implementation of Pillar I of the RP3SI 2023–2027, which focuses on strengthening the structure and resilience of the Sharia banking industry.
Under this POJK, BUS are required to maintain a minimum leverage ratio of 3 percent at all times. The first reporting obligation applies to the end of the first quarter of 2026, while public disclosure will begin in September 2026.
The regulation took effect upon promulgation on 17 September 2025. BUS that are unable to meet the threshold are required to submit a remedial action plan to OJK. Non-compliance may result in administrative sanctions, including monetary and non-monetary penalties.
With the issuance of this POJK on Leverage Ratio, OJK reinforces the establishment of a strong capital structure for Sharia Commercial Banks—serving as a solid foundation for a sound, growing, and globally competitive Sharia banking system that is consistent with evolving international standards.