JAKARTA — The Indonesian Sharia banking sector is gaining significant momentum in the first quarter of 2026, triggering selective buying interest in major stocks such as PT Bank Syariah Indonesia Tbk. (BRIS) and PT Bank BTPN Syariah Tbk. (BTPS).
Despite global liquidity challenges, the industry is outperforming the broader national banking sector. According to data from the Financial Services Authority (OJK) as of March 2026, the market share for national Sharia banking has climbed to 7.51%. Furthermore, Sharia-based financing has surged by 9.82% year-on-year (YoY), significantly outpacing the more moderate growth seen in conventional banking during the same period.
Pasar Dana Co-Founder Hans Kwee believes that the industry’s solid fundamentals present an attractive opportunity for investors. He suggests a measured investment strategy, particularly for those focused on medium to long-term portfolio growth.
“An accumulation strategy is recommended for Sharia bank stocks, especially while the industry maintains such robust growth momentum,” Kwee stated on Friday, May 29, 2026.
Based on his analysis, BRIS is projected to reach a target price range of Rp3,100 to Rp3,300 per share, while BTPS shows potential to move toward the Rp1,500 to Rp1,700 per share level. Market participants view these two issuers as having distinct characteristics and investment appeals.
BRIS is considered a defensive stock with strong, stable fundamentals. While its price movement is more measured, it is widely regarded as a safer bet for long-term investors. In the first quarter of 2026, BRIS reported a 17.1% YoY increase in net profit and a 17.99% YoY growth in third-party funds (DPK). This performance was bolstered by a surge in fee-based income from gold installment and savings products, as well as aggressive financing in the wholesale segment and state-owned enterprise (BUMN) infrastructure projects, which grew by 12.59%.
Conversely, BTPS presents a more aggressive profile with higher volatility in the retail market. However, the company offers significant growth potential, particularly as public purchasing power in the ultra-micro segment begins to recover.
Overall, Sharia banks are also benefiting from new growth drivers, most notably the Hajj and Umrah ecosystem. Efforts to digitize Hajj savings targeting the younger generation have successfully attracted 1.2 million new customers, helping to secure a stable and low-cost funding structure for the sector.
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Summary
The Indonesian Sharia banking sector demonstrated strong growth in the first quarter of 2026, with market share rising to 7.51% and financing increasing by 9.82% year-on-year. Driven by digital initiatives in the Hajj and Umrah ecosystem, institutions like Bank Syariah Indonesia (BRIS) and Bank BTPN Syariah (BTPS) are outperforming the broader national banking industry.
Market analysts suggest an accumulation strategy for these stocks, citing BRIS as a stable, defensive option with strong profit growth and BTPS as a higher-volatility play with significant potential. Projected price targets for BRIS range from Rp3,100 to Rp3,300, while BTPS is expected to move toward the Rp1,500 to Rp1,700 level based on current positive fundamentals.
