Indonesia Towards the Center of Global Sharia Economy

DUBAIUAE, November 8, 2022 /PRNewswire/ — PT Bank Syariah Indonesia Tbk (BSI) confirmed of Indonesia Commitment to become one of the centers of Islamic finance in the world by introducing four programs to strengthen this ecosystem and Indonesia and abroad.

Minister of State-Owned Enterprises Erick Thohir led the ministry preparation of four feature programs to form this ecosystem. First, the development of the halal industry market in the country and abroad. The second is the development of the Sharia financial industry. Third, friendly investment with local entrepreneurs. And the fourth, continuous growth of the Sharia economy in rural areas.

Recognizing Indonesia’s Sharia economic potential, Minister Thohir expressed his desire that Indonesians are not only consumers of imported halal goods, but also producers. “We should be the producers and a global player. But that would be impossible if we don’t have a strong Sharia financial system,” said Thohir.

According to the indicator report of The State of Global Islamic Economy, Indonesia has continuously shown significant growth. In 2019, the country was one of the top 10 countries of the world Sharia economy. In 2020, this rank was increased, place Indonesia in the top five.

Thohir established the holding company of the state’s Sharia Bank, Bank Syariah Indonesia (BSI). BSI is a result of the merger of 3 Sharia banks namely BNI Syariah, BRI Syariah, and Bank Syariah Mandiri which was inaugurated February 1, 2021. BSI is the largest Islamic bank and the 7th Indonesia.

Vice President of the Republic of Indonesia Ma’ruf Amin said, BSI should be able to do Indonesia the center for the Sharia industry and the world’s halal ecosystem. “Our hope is that the BSI will take on this role not only nationally, but also globally. Similarly, Islamic banks are now not only playing in a small pool, but able to swim in the wide ocean,” said Maruf, during a visit to the BSI Representative Office at Dubai, United Arab Emirates on November 4, 2022.

BSI President Director Hery Gunardi declared the bank’s commitment to fully support all initiatives to strengthen the ecosystem with the goal of becoming the Sharia economic center of gravity of the world. BSI, he said, has been steadily developing the country’s sharia financial ecosystem.

Indonesia has great potential in the halal industry,” added Gunardi. This is supported by the fact that more than 229 million of its population are Muslim, which corresponds to 87.2% of the country’s total population. The halal food industry has the ‘Potential up to USD 164.76 billion. Further potential can be found in clothes with USD 20 billionHalal media USD 9.52 billionHalal tourism USD 10.48 billionHealth industry USD 4.76 billionHalal cosmetics in Hajj and Umrah USD 3.81 billion. Other sharia businesses, such as investment, have potential around USD 122.65 billion.

BSI also started its business penetration in the global market. One of them is in Mediterranean East in accordance with cooperation with international conglomerates and start-ups and Dubai, United Arab Emirateswhich also marks the expansion of the largest Islamic bank and Indonesia in the global arena. This step was an acceleration for BSI to be considered in the international community by increasing skills, competitiveness and reputation. The presence of foreign business networks allows BSI to interact directly with important components of the global banking industry.

Gunardi hopes that BSI will be closer to global investors, so that the company can contribute more in supporting the programs of the government of the Republic. Indonesiaboth in the financing of infrastructure and development projects through the issuance of Global Sukuk as well as support for the development of national MSMEs.

BSI maintained its positive performance in the third quarter of 2022, achieved USD 218.36 million Net profit, growing 42% (joy). This performance was also supported by public trust, demonstrated by the 11.86% increase in third party funds that reached USD 16.68 billion.

The funding side has also grown significantly. BSI funding received as a whole USD 13.59 billionand 22.35%. By segments, microfinance contributed the most at 37.32%. Consumer financing grew 25.26%, wholesale financing 21.79%, card financing 35.81%, and also goldpaid with 30.15% growth. In addition, the net NPF was only 0.43%.

Solid and healthy performance was also reflected by 11.53% asset growth. BSI also strived for cost efficiency, shown by better BOPO ratio of 74.02%. Up to September 2022, there were already 4.44 million users of BSI Mobile, increasing by 43% annually. Based on customer profiles in BSI, as many as 97% have moved to e-channel for banking activities. Cumulative transactions for BSI Mobile reached 187.20 million transactions.

Sustainable funding achieved USD 3.47 billion or 25.54% of total BSI funding. “Promoting sustainable financing is one of our commitments as part of our social and environmental responsibilities in various areas of this country as well as supporting the G20 Indonesia presidency,” Gunardi added.

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SOURCE PT Bank Syariah Indonesia Tbk


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