Islamic Finance Comparative Guide

1. Legal framework

1.1 What laws and regulations govern Islamic finance in your jurisdiction?

In Indonesia, financial services can be provided based on either general or Islamic/Sharia principles, which generally must comply with the prevailing laws and regulations in Indonesia as overseen by the Financial Services Authority (OJK). In addition to general rules as issued by the OJK and Islamic/Sharia principles, finance businesses must comply with certain Islamic/Sharia laws and regulations, including:

• Law 21/2008 on Sharia Banking as amended by Law 6/2023 on the Stipulation of Government Regulation in Lieu of Law 2/2022 on Job Creation into Law and Law 4/2023 on the Development and Strengthening of the Financial Sector;