BANK SYARIAH INDONESIA : MERGER TO REALIZE THE HOPE OF THE COUNTRY

On Monday, February 1, 2021, President Joko Widodo inaugurated PT Bank Syariah Indonesia Tbk. (BSI) at the State Palace, Jakarta. This inauguration was a historic day for the development of the Islamic economy in Indonesia, which is a country with the largest Muslim population in the world. BSI is the result of a merger between PT Bank BRIsyariah Tbk, PT Bank Syariah Mandiri and PT Bank BNI Syariah. The merger permit was issued by OJK through letter Number: SR-3/PB.1/2021, which allowed the name change from PT Bank BRIsyariah Tbk to PT Bank Syariah Indonesia Tbk. The talk about the merger of the three government Islamic banks has been going on since 2015 with no clear realization. However, in March 2020, BUMN Minister Erick Thohir appointed Hery Gunardi, Deputy Director of Bank Mandiri at the time, as Chairman of the Project Management Office (PMO) for the merger of three Islamic owned banks. of BUMN. Hery Gunardi has a background and experience in overseeing the merger process during the formation of Bank Mandiri in 1998-1999. The merger and increase in value of the Islamic Bank began in early March 2020 and took about 11 months. During this period, there were several processes that needed to be gone through, from due diligence, signing of the merger deed, filing information, and obtaining permits from the OJK. BSI had assets worth IDR 240 trillion with a core capital of more than IDR 22.6 trillion, which placed the company in the list of the 7 largest banks in Indonesia in terms of assets. The financing reached IDR 157 billion with third party funds (DPK) reaching IDR 157 billion. BSI is expected to become one of the 10 largest Islamic banks in the world in terms of market capitalization in the next 5 years.

The composition of shareholders in the merged bank was PT Bank Mandiri (BMRI) at 51.2 percent, PT Bank Negara Indonesia (BNI) at 25 percent, PT Bank Rakyat Indonesia or (BBRI) at 17.4 percent, DPLK BRI – Sharia Shares at 2 percent, and the public 4.4 percent. The shareholding structure was based on the calculation of the valuation of each of the banks participating in the merger. BSI was expected to enhance Islamic financial services and products in Indonesia. The sharia economy is becoming increasingly important in Indonesia because the majority of the population embraces Islam. Bank Syariah Indonesia was also expected to help boost the Indonesian economy as a whole.The merger of the three Islamic banks was also expected to overcome the capitalization problems occurring in the Islamic banking sector in Indonesia. With the combined strength of these three state-owned Islamic banks, it was expected to strengthen the position of the Islamic financial industry in Indonesia and promote more inclusive economic growth.

Furthermore, BSI was expected to attract more customers to use Islamic financial products and services in Indonesia. In addition to raising public awareness of Islamic finance, Bank Syariah Indonesia was expected to make an important contribution to the development of the Islamic economy in Indonesia. However, as with all newly formed companies, BSI faced several challenges and risks. Some of these include increased competition with Islamic and other conventional banks, compliance with strict regulations and standards, and preparation to deal with various operational and financial risks. In an effort to overcome these challenges, BSI needed to strengthen risk management and ensure compliance with strict regulations and standards. In addition, BSI also needed to continue to innovate and improve its sharia financial products and services so that they remain relevant and can compete with other banks.

Overall, the merger of three state-owned Islamic banks to become Bank Syariah Indonesia was expected to strengthen the position of the Islamic finance industry in Indonesia and help drive more inclusive economic growth in the country. However, these startups faced various challenges and risks and must strengthen risk management and continue to innovate to remain relevant and competitive in the growing Islamic financial market.