Indonesian Sharia Bank Successfully Aligned With World Sharia Bank

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Bank Syariah Indonesia Tbk, a combination of three state-owned Islamic banks with stock code (BRIS) was officially launched at the Presidential Palace on Monday, February 1, 2021, by the President of the Republic of Indonesia, Joko Widodo. With a large Muslim population in the country, President Joko Widodo said that the potential of the Islamic Economy is like a 'sleeping giant' which if awakened will have a positive impact on the Indonesian economy.

According to data from the Indonesia Stock Exchange (IDX), BRIS's shares jumped 10.74 percent at the level of Rp1,650 per share. At the end of 2021, BSI targets Rp54 trillion for projected MSME funds. BSI will also design specific strategies to support growth and progress in the Micro, Small, and Medium Enterprises (MSME) sector.

Based on data obtained until September 2020, the total MSME funds have reached Rp36.36 trillion. It is known that Rp18.7 trillion is financing for MSMEs owned by PT Bank BRI Syariah, Rp11.67 trillion belongs to PT Bank Syariah Mandiri, and Rp5.99 trillion belongs to PT Bank BNI Syariah.

Bank Syariah Indonesia is the government's breakthrough to merge three state-owned Islamic banks in mid-2020. The three, PT BRI Syariah Tbk (BRIS), PT Bank Syariah Mandiri (BSM), and PT BNI Syariah (BNIS) are now merged into one.

In this position, BRIS will be the party that accepts the merger or the survivor entity of the three Islamic banks. Meanwhile, PT Bank Syariah Indonesia Tbk (BSI) is the new name resulting from a merger or business merger of three state-owned Islamic banks.

"Alhamdulillah, many parties have given positive support for the policy of merging the three Islamic banks. Among them is the Nahdlatul Ulama Executive Board (PBNU). Through BRIS, PBNU believes that Indonesia can become a country with the world's Islamic economic power. Support and optimism were conveyed by the Chairperson of the Ulema Council Indonesia (MUI) Cholil Nafis Center," said Muhammad Assad, Deputy Chairperson of DKI Jakarta MES, in a written statement, quoted Tuesday, July 6.

"The Central MUI also supports and hopes that BSI will become the world's Islamic banking mecca. The Central MUI considers the merger of these three Islamic banks to be the right step. It must be on target and on time," he added.

Support also came from Vice President Ma'ruf Amin. According to Ma'ruf, BSI is very appropriate. For this reason, he hopes that the conversion of Regional Development Banks (BPD) to Sharia Banks will soon be realized.

Ma'ruf also sees that the public's interest in transacting with Islamic banks is quite high. This is the right moment to strengthen the national Islamic economy and finance. Even surveys say that currently, the hijrah community is very high, even among youth or millennials.

However, Ma'ruf advised BSI to maintain quality and maintain service. BSI should not only be sharia-compliant, but also profitable for depositors.

"As a young entrepreneur and a graduate based on sharia, I also support and appreciate this policy. Considering that Indonesia has a Muslim population of 229 million people or 87.2 percent," said Muhammad Assad.

"This makes me optimistic that Indonesia will be able to become the center of Islamic economy and finance in the world that is not inferior to other countries. I believe the presence of Bank Syariah Indonesia can be a milestone for the revival of Islamic economy and finance in Indonesia," he added.

The Indonesian economy is increasingly advanced and competitive in the global arena. Especially if Bank Syariah Indonesia can expand or cooperate with Dubai, Bahrain, Kuwait, and Abu Dhabi. Of course, this expansion is a very big strength capital, although it is undeniable that the process is not easy, there will be many challenges and risks that are also of the same magnitude.

There are three points that underlie why this Indonesian Islamic Bank can be said to be good. This optimism is based on a number of things.

First, in the eyes of the global world, the merger of these three Islamic banks can bring Indonesia into the top 10 largest Islamic banks in the world in the next five years. This point is in line with the vision of Bank Syariah Indonesia. While on the second point, BSI can be seen from the economic side. This is one of the efforts to restore the national economy.

"I believe that the economic system will become more just and transparent. Indonesia's sharia-based economy is also getting stronger," said Muhammad Assad.

Then the third point, the merger of Islamic banks can avoid competition between Islamic banks.

"I see Bank Syariah Indonesia as having significant advantages and so many benefits, namely being able to finance government infrastructure projects; working on consumer and retail businesses; pawn market and gold installments; health; education, as well as distribution of zakat, infaq, alms, and waqf," he explained.

Bank Syariah Indonesia will also strengthen the wholesale banking segment. Bank Syariah Indonesia is not only good for national customers but also for global investors, including treasury & international banking in order to optimize the potential of Global Sukuk.

This has indeed been revealed by the head of Project Management Office Integration, Hery Gunardi, BSI can manage assets that reach Rp214.6 trillion with a core capital of more than Rp20.4 trillion. Supported by more than 1,2000 branches, 1,700 ATM networks, and more than 20,000 employees who will support Bank Syariah Indonesia.

"Hopefully with a lot of support, Bank Syariah Indonesia is able to allocate the infrastructure as optimally as possible," said Muhammad Assad.

Not only that, BSI remains steadfast in its commitment to encourage MSMEs in Indonesia. The target is to reach and make it easier for customers to access, especially small people who have difficulty accessing Islamic financial services.

Muhammad Assad said, given that MSME customers and actors are one of the important pillars for the Indonesian economy, do not let the support for MSMEs slack and decrease.

"Prove that Bank Syariah Indonesia can be part of the ecosystem and synergize in empowering MSME business actors. From my analysis, Bank Syariah Indonesia is able to embrace all levels of society. Hopefully, the prospects for Bank Syariah Indonesia are getting better, developing and implementing it in accordance with sharia principles," he said.

"Of course, accompanied by the latest quality and digital technology. Congratulations on carrying out the mandate in grounding the economy of the ummah. May Allah SWT always provides convenience and smoothness," concluded Muhammad Assad.