Bank Syariah Indonesia Formulating Plans to Capture a Share of the Middle Eastern Sukuk Market

Bank Syariah Indonesia (BSI) has drawn up business plans with strategies targeting the guarantee of global Sukuk issuances worth between USD 200-300 million per year. This is despite not having completed the merger proceedings yet.

According to Hery Gunardi, President Director of Bank Mandiri Syariah, one of the banks involved in the merger, this move was one of the strategies to establish a global presence as a large Shariah bank. Gunardi, who also serves as Head of Project Management Office for Integration and Value Improvement of BUMN Sharia Banks, noted that the aim was to build up a reputation in the Middle East as an underwriter for the Government of Indonesia’s global Sukuk issuances.

Other economists supported this view. Senior Researcher from the Center...