Bank Syariah Indonesia to Drive Indonesia’s Finance Sector Growth Locally and Globally

DinarStandard’s latest ‘State of the Global Islamic Economy Report’ published in November 2020 ranks Indonesia fourth, amongst Islamic economics, after Malaysia, Saudi Arabia, and the United Arab Emirates. The ranking has improved since 2018 (when Indonesia ranked 10) mainly due to its halal food and modest fashion industries. The report ranks Indonesia at six in the Islamic finance segment, reflecting the country’s under-developed Shariah-banking sector – accounting only 6% of the country’s banking assets. The establishment of PT Bank Syariah Indonesia (BSI), a merger of the Shariah-subsidiaries of three state-owned banks – Bank Rakyat Indonesia, Bank Mandiri and Bank Negara Indonesia, is expected to improve this.

The 1st of February 2...