BSI Aims for Top Three with Hajj Savings and Bullion Bank Edge

JAKARTA, investortrust.id - PT Bank Syariah Indonesia Tbk, the largest Indonesian Islamic banking institution by assets, unveils two key strategies that it believes will boost its competitive edge against major lenders in terms of assets, services, and network. The bank is confident these measures will propel it into the ranks of Indonesia’s top three banks.

On Saturday, Mar 8, 2025, Bank Syariah Indonesia, which trades under the ticker code BRIS, stated that one of its primary advantages lies in its status as an Islamic bank. According to President Director of PT Bank Syariah Indonesia Tbk Hery Gunardi, this role grants the bank unique access to hajj savings, a privilege soon mandated by the Indonesian Ministry of Religious Affairs to be exclusive to Islamic banks.

“We have a luxury that conventional banks do not. The government, thankfully, will give a directive that hajj savings are not to be placed in conventional banks, only in Islamic banks,” said Hery during a fast-breaking gathering with leading media editors in Jakarta on Friday, Mar 7, 2025.

Hery highlighted that around 22 million Indonesians currently meet the requirements to perform the pilgrimage to Mecca. Yet only 5 million of these potential pilgrims hold hajj savings in BSI or other sharia banks. Determined to tap the remaining 17 million prospective customers, BSI has introduced measures to draw more hajj savings, even without promising any direct return.

“We changed our approach to collecting hajj savings. In January alone, we managed to raise nearly Rp1 trillion ($66 million) per month in hajj savings. That is equal to Rp12 trillion in a year, with a zero cost of funds under the Wadiah contract. This is one of the blessings for sharia banks,” Hery explained.

In Islamic banking, a Wadiah contract refers to the safekeeping of funds or assets where the institution safeguards the deposits without obligating itself to deliver any return, except for a voluntary gift that is not predetermined. At BSI, this model includes Wadiah-based savings and current accounts, representing around 30% of its total third-party funds (TPF), which reached Rp 327.45 trillion by 2024.

“This includes Wadiah savings and Wadiah current accounts, which today make up more than 30% of BSI’s TPF. Wadiah means customers only entrust their money without asking for anything from us,” said Hery.

Given its low cost of funds, BSI is focusing on increasing its share of hajj savings as a main growth engine, a move Hery described as a “game-changer” that other banks do not possess. BSI data showed that, as of 2024, approximately 11.8 million out of 22 million prospective pilgrims (57.3%) already owned hajj savings, and more than half of these accounts—52.54%—were held at BSI.

BSI as a Bullion Bank

Another major factor in BSI’s growth strategy is its newly established role as a bullion bank. President Prabowo Subianto recently officiated this designation, making BSI one of only two Indonesian institutions authorized by the government to provide bullion banking services. Since BSI is the sole bank entrusted with these services, Hery believes it has extra flexibility for higher growth compared to other lenders.

During the bullion bank inauguration last week, Hery revealed that around 1,800 tons of gold circulate among the public. Half of this gold originates from mining, while the rest comprises jewelry and gold bars privately held by individuals. BSI currently manages about 17.5 tons of customers’ gold.

Hery further noted that if the financial services authority recognizes customers’ stored gold at BSI as third-party funds, BSI would immediately gain an additional Rp25 trillion (around US$1.65 billion) in TPF.

To facilitate more gold transactions and safekeeping, BSI is preparing three channels for customers. The first involves its new superApp “Byond,” which enables people to buy gold, either via cash or installments, in digital form. The second is “BSI Gold,” physical gold bars carrying the BSI logo, available at various branches in denominations up to one kilogram.

Lastly, BSI is introducing “BSI Gold ATMs,” 50 kiosks that will allow users to purchase gold in denominations starting from 5 grams to 25 grams. One of these ATMs is already operational at Senayan City in Jakarta.

“I see strong enthusiasm for this, especially once we have more ATMs,” said Hery.

Reflecting on the bank’s 2024 performance, BSI reported a net profit of Rp 7.01 trillion, up 22.83% year-on-year. This result positioned BSI among the top 10 banks with the highest growth rate in Indonesia last year. BSI’s total TPF reached Rp 327.45 trillion, supported by a 60.12% share of current and savings accounts (CASA).

The bank’s CASA rose 10.65% year-on-year to Rp197 trillion, while deposits reached Rp130.58 trillion and current accounts Rp56.33 trillion. This effective TPF management helped reduce profit-sharing expenses.

“This is a blessing, and hopefully we will continue to grow. BSI can rank not only as the country’s fifth-largest bank but also join the top three banks in Indonesia, God willing,” said Hery.