Creativity And Innovation (A)

BPME2023-A203

Group Assignment

Bank Syariah Indonesia

Prepared by:

Name No. Matrix

Lailaturrahmi 276281
Nugroho Agung 276286
Mutiara Shania Dwi 276287
Cahyani Raeta Ananda 276292
Veronica Genia 276293
Wulandari Dinda Suchi 276296
Yasmine Nadilla Annisa 276297

Submitted To:

Dr. Muhamad Ali Imran Bin Kamarudin

Acknowledgement

Heartfelt thanks to these wonderful lecturers, namely Dr. Muhamad Ali Imran Bin
Kamarudin for their passion and commitment, guidance, and assistance in completing this
 proposal. A special thanks also goes to my colleagues at the School of Business Management,
Universiti Utara Malaysia, for their encouragement and support throughout the process.  

Table of Content

Acknowledgement...............................................................................................................2

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Table of Content..................................................................................................................3

Background of the Company...............................................................................................4

Background of the product or service..................................................................................6

The Characteristics of the Service.......................................................................................9

Lessons Learned From the Organization ............................................................................10

The Future Product/Service.................................................................................................10

Additional information........................................................................................................11

References...........................................................................................................................12

Appendixes..........................................................................................................................13

Background of the Company

Bank Syariah Indonesia

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As the world's largest Muslim country, Indonesia has the potential to be at the forefront of the
Islamic financial industry. Increased public awareness of halal issues and strong stakeholder
support are critical elements in the growth of Indonesia's halal industrial ecosystem. Islamic
banks are one of them. Islamic banks can play a significant role in the halal industry ecosystem
sector as facilitators of all economic operations. One of them is the capital availability in Islamic
banking, which is still quite low in comparison to traditional banking.
The Roadmap for the Development of Bank Syariah Indonesia 2020-2025 outlines the
government's tangible initiatives to expand Indonesian Islamic banking growth issuance. The
roadmap, in general, focuses on three primary pillars, which are the objectives for Indonesian
Islamic banking to have a stronger impact on the Indonesian economy.
1. The first pillar places a greater emphasis on strengthening Islamic banking's identity.
2. The Sharia Economic Ecosystem Synergy's second component.
3. Strengthening Licensing, Regulation, and Supervision is the third pillar.

These three pillars served as a predecessor to the formation of PT. BSI, which aims to strengthen
Indonesia's Islamic finance sector. The Financial Services Authority (OJK) has set these three
pillars as a goal for the Indonesian Islamic banking sector over the next five years for a reason.
This Roadmap was published as a follow-up to the 2015-2019 Roadmap, which culminated in
the formation of PT. Bank Syariah Indonesia (BSI) in February 2021. This is a wonderful thing
for the Indonesian Islamic banking sector because the merger of these three Islamic Commercial
Banks brings several strengths and benefits to the Indonesian Islamic banking sector. One of the
factors driving the development of PT. BSI was the merging of three state-owned Islamic banks,
which has the potential to produce significant momentum in maximizing the local sharia market,
which has yet to be completely utilized.
PT. Bank Syariah Indonesia, or BSI, is a Syariah Banking firm founded on February 1, 2021 and
inaugurated by Indonesian President Joko Widodo. The foundation of Bank Syariah Indonesia is
part of the government's efforts and commitment to advance Islamic economy as a new pillar of
national economic power, with the goal of making Indonesia one of the world's Islamic financial
hubs in the long run. PT Bank BRIsyariah Tbk, PT Bank BNI Syariah, and PT Bank Syariah
Mandiri have merged to form Bank Syariah Indonesia. The inauguration of BSI also serves as a
public introduction of the BSI logo. Hery Gunardi, President Director of PT Bank Syariah

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Indonesia, made the official announcement of the BSI logo. The overall BSI logo is green and
white, with a yellow star at the far right of the lettering and the BSI inscription. The word "Bank
Syariah Indonesia" is placed beneath the words BSI. The 5 precepts of Pancasila and the 5 pillars
of Islam are represented by the philosophy contained in the 5-pointed yellow star. The writings
of BSI represent Indonesia on a national and international level.
In Indonesia, the Islamic banking business has grown and developed significantly during the last
three decades. Year after year, product innovation, service enhancement, and network
development all exhibit a good trend. Indeed, the need to move faster is reflected in the growing
number of Islamic banks that engage in business actions. With this combination, Islamic banking
in Indonesia will become more inventive, useful, and powerful, allowing it to become a driving
force in the country's development. This merger will bring together the strengths of the three
Islamic banks to deliver a more comprehensive service, a broader reach, and increased capital
capacity. Bank Syariah Indonesia is encouraged to compete at a worldwide level thanks to
synergies with parent firms (Mandiri, BNI, BRI) and the government's commitment through the
Ministry of SOEs.

In addition to demonstrating to the international community that the Indonesian banking system
is very robust in terms of fundamentals and is fully supported by the Indonesian government,
new vitality has developed in the Indonesian economic sector. When discussing the principles of
Islamic banking, it is impossible to separate them from the performance of Islamic banking, and
it has been demonstrated that when these three state-owned Islamic banks are united, they have a
pretty decent performance and the potential to develop. For the government, this is a positive
thing since it may encourage Indonesians to save and make loans using a sharia system based on
the Al-Quran and Hadith. The merging of the three Islamic banks is an attempt to build a Sharia
Bank that is the pride of the people, with the potential to become a new source of national
economic development and contribute to the well-being of the wider community. The presence
of Bank Syariah Indonesia reflects the modern, universal face of Islamic banking in Indonesia,
which brings goodness to the entire world.

The merging of these three state-owned Islamic banks has also demonstrated to the international
community that Indonesia is capable of taking bold actions even in the middle of the global

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COVID-19 pandemic, and Indonesia is daring to forge a new breakthrough for Indonesian
Islamic banking. The government also wants to make PT.BSI a benchmark for Islamic banking
in Indonesia and overseas, and it needs to come up with the greatest ideas to entice people to
save with PT.BSI. According to the State of Global Islamic Economy Report 2019-2020,
Indonesia is the world's largest sharia economy, ranking 5th out of 73 nations. This is a factor in
the merging of the three Sharia BUMN banks, allowing Indonesia to play a relatively good
position in the international market.

Background of the product or service

According to the Financial Services Authority (OJK) website (www.OJK.go.id), the initiative to
establish an Indonesian Islamic bank began in 1980 with discussions about Islamic banks as
pillars of Islamic economy. In 1990, the Indonesian Ulema Council (MUI) formed a working
group to establish an Islamic bank in Indonesia. MUI held a workshop on bank interest and
banking in Cisarua, Bogor, West Java, from August 18 to 20, 1990. As a result of the work of the
MUI Banking Team, the first Islamic bank in Indonesia, PT Bank Muamalat Indonesia (BMI),
was established on November 1, 1991, and has been officially operating since May 1, 1992. In
Indonesia, Islamic banks are becoming more prevalent. Following is a list of Islamic banks that
have been established in Indonesia :

1. Bank Syariah Indonesia

2. Bank BCA Syariah
3. Bank Muamalat Indonesia
4. Bank Jabar Banten Syariah
5. Bank Maybank Syariah Indonesia
6. Bank Panin Syariah
7. Bank Syariah Bukopin
8. Bank Mega Syariah
9. Bank Victoria Syariah
10. Bank BTPN Syariah
11. Bank BJB Syariah
12. Bank BTN Syariah

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 13. Bank Sinarmas Syariah
14. Bank Aceh Syariah
15. Bank Jateng Syariah
16. Bank Kaltim Syariah
17. Bank Bumiputera Syariah.

PT Bank Syariah Indonesia Tbk was formed by the merger of three state-owned Islamic
banks: PT Bank Syariah Mandiri, PT Bank BNI Syariah, and PT Bank BRI Syariah. The
Ministry of State-Owned Enterprises initiated this merger. Erick Thohir, Minister of State-
Owned Enterprises (BUMN), stated that the merger of the three Islamic banks was intended to
encourage the development of the Islamic financial market in order to maximize the potential of
Islamic finance and the economy in Indonesia. Bank Syariah Indonesia aspires to become one of
the world's largest Islamic banks within the next five years.

On February 1, 2021, Bank Syariah Indonesia will begin operations in Indonesia. Bank
Syariah Indonesia is also traded on the Indonesia Stock Exchange under the ticker symbol
BRIS. Bank Syariah Indonesia allows the general public to own up to 5.46 percent of the
company. According to Forbes, Bank Syariah Indonesia is one of the top ten banks in Indonesia.
In terms of network, Bank Syariah Indonesia is supported by over 1,300 branch offices, over
2,400 ATM networks, and over 20,000 employees spread across the archipelago.

Bank Syariah Indonesia is optimistic about developing and innovating its products,
recognizing the potential of Indonesia's predominantly Muslim population and supported by the
union of three state-owned Islamic banks that have performed well in Indonesia. BRIS's shares
increased 10.74 percent to Rp. 1,650 per share, according to data from the Indonesia Stock
Exchange (IDX). This demonstrates that the Indonesian people are ecstatic about the arrival of
Indonesia's largest Sharia-compliant bank. By the end of 2021, BSI hopes to have Rp54 trillion
in projected MSME funds. In addition, BSI will develop specific strategies to support growth
and progress in the Micro, Small, and Medium Enterprises (MSME) sector. According to Hery
Gunardi, President Director of PT Bank Syariah Indonesia Tbk or BSI, only 30.27 million of
Indonesia's 180 million Muslim population were customers of Islamic banks as of November
2020. This suggests that the market potential of Islamic banks is significant and has not been

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fully realized. Hery stated that BSI will serve 14 million customers as a result of the merger of
three state-owned Islamic banks, namely PT Bank BRI Syariah Tbk, PT Bank BNI Syariah, and
PT Bank Mandiri Syariah (BSM), with details of 8 million customers from Bank Syariah
Mandiri, 6 million customers from BNI Syariah and BRI Syariah.

The Islamic Banking Industry's Prospects According to the 2017 Global Islamic Finance
Report, global Islamic financial assets reached US$2.3 trillion in 2016. The figure is expected to
rise to $3 to $4 trillion by 2021. According to data compiled by the Financial Services Authority
(OJK), the national Islamic finance industry grew by 29.84 percent last year. This figure is said
to be sufficient to contribute to the community's financial needs as well as national economic
development. "This is demonstrated by the growing number of products and services available,
as well as the development of infrastructure to support the Islamic finance industry in
Indonesia," said Nurhaida, Deputy Chairman of the OJK Board of Commissioners.

During this pandemic, the merger of Bank Syariah Indonesia has become a positive value
in society. Bank Syariah Indonesia's products are also very appealing to the general public,
including a sharia-based savings system, no monthly fees, and the ability to open an account
online. People nowadays prefer quick and easy access to goods and services. Especially for
millennials who want to do everything with their smartphones. During the pandemic, it was
difficult for some people to save, particularly because of the monthly administration fee, which
was quite a burden for a person, and there were some restrictions when visiting branch offices
in several areas, which made people irritated and impatient. This ease of use is what makes
BSI's products so appealing to customers. Saving in conventional banks is also stigmatized in
today's society due to the usury system. Islamic banks appear to be the solution to this stigma. If
Muslim communities in Indonesia save in Islamic banks, they feel safe. BSI also offers internet
banking and mobile banking, which facilitates transactions.

The Characteristics of the Service

Bank Syariah Indonesia is unique because of how it was created by three large Islamic banks that
have been recognized by Indonesia. As a result, the services provided by Bank Syariah Indonesia

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are more professional. What is clear is that it is done in conformity with the norms of Islamic
law. 

1. Bank Syariah Indonesia provides BSI Aisyah as one of its services. BSI Aisyah is an
interactive chatbot service that will assist in providing information on the most recent
products, services, and promotions from Bank Syariah Indonesia. BSI Aisyah's service is
based on messaging apps. This service makes it very easy for customers if they have
things they want to ask at any time and of course this service provides accurate
information and fast responses. Not only that, it provides two-way communication
services between customers and non-customers.
2. Because there are three separate main banks, each with their own target clients, Bank
Syariah Indonesia has a very wide range of customers. Indonesian businessmen are the
target market of Bank Mandiri, a local bank. City dwellers make up the bulk of Bank
BNI's customer base. In the meanwhile, Bank BRI's target clients are those who live in
villages, therefore it is frequently used by peasants. In other words, even though they
have their own set of clients, they are still referred to as BSI customers because they have
joined as partners in that department. Furthermore, compared to independent Islamic
banks, the income earned will be substantially more in the long term. 
3. The ATM card does not have to use only BSI ATMs but can be used at Mandiri ATMs
and is free.
4. There are no administrative costs for interbank transfers. There are usually inter-bank
costs for inter-bank transfers, but if you move from BSI to BRI Syariah Bank, BNI
Syariah Bank, or Syariah Mandiri Bank, or vice versa, there will be no admin fee.
5. Bank BSI provides a gold installment financing program that is not provided by other
banks.
6. BSI's mobile banking service also allows you to buy, trade, and transfer precious metals
with Antam certificates (Antam is Aneka Tambang - state-owned companies).

Lessons Learned From The Organization.  

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There are numerous advantages and disadvantages to the merger of these three Islamic banks.
However, numerous lessons may be taken from the establishment of BSI as a sharia bank in
Indonesia, including:

1. The presence of Islamic banks in Indonesia can help to avoid riba.

2. Islamic banks are able to provide sharia-compliant financial services.
3. A fair and transparent financial system. Fairness and openness will improve client trust in
the company.
4. The funds in Islamic banks are used for the benefit of others, such as orphans and the
homeless. In other words, while we are saving, we can donate to charity and assist others.
5. In Indonesia, islamic banks are able to grow . Indonesians are accustomed to using
traditional financial institutions and BSI's existence is a sign that a growing number of
them are beginning to accept Islamic financial institutions as well.
6. Indonesia has the potential to become a competitive Islamic banking country. World
Islamic banking is still dominated by Arab countries and Malaysia, so Indonesia must
seize this opportunity to compete with other world Islamic banking by developing various
types of innovations that may help people perform Islamic financial transactions.
7. Islamic banks can offer a wider range of Islamic financial instruments to meet the
demands of business clients.

The Future Product/Service 

In Indonesia, the majority of the population is Muslim. A growing number of people are
turning away from traditional banking products in favor of islamic financial institutions. As a
result, Islamic banks must likewise keep up with the times in order to avoid being left behind by
traditional bank products. Services or products such as e-money and insurance could be
developed in the future by Bank Syariah Indonesia (BSI). E-money is money that is kept in a
bank's system and is used for electronic transactions, such as online shopping. This is due to the
fact that e-money is only meant for electronic transactions and hence cannot be redeemed for
cash back. In Indonesia, only conventional banks have offered e-money; none of the Islamic
banks have. Paying for parking, tolls, and public transportation such as MRT or Trans Jakarta are
common uses for e-money in Indonesia. Due to the fact that e-money is frequently in the shape

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of a card, it is highly convenient to carry around and can speed up transactions, especially when
traveling.

Moreover, there are no Islamic banks in Indonesia that provide sharia insurance; instead,
sharia insurance is provided by private companies. Given that insurance is extremely beneficial
and important, it would be better if BSI could provide Sharia insurance to all BSI customers. Life
insurance, education insurance, and Hajj and Umrah insurance are all available through BSI.

1. Life insurance will be particularly advantageous in Indonesia, where the accident

rate is predicted to be 100,028 people in 2020.
2. Parents will be able to better manage their children's education due to the high
cost of education.
3. All medical expenses, including prescriptions, hospitalization, and surgery, will
be covered by health insurance.
4. Umrah and Hajj will be performed by many Indonesians due to the majority of
Indonesians are Muslim. In the case of an accident, a luggage loss, a religious
death, or a medical emergency, this insurance will assist in mitigating risk.

Additional information
As previously stated, Bank BSI is the result of a merger of three state-owned Islamic banks. The
merger process for these three Islamic banks took about 11 months, with the first merger starting
in March 2020. Due diligence, signing the deed of merger, submission of information disclosure,
and obtaining permission from the OJK are some of the procedures that must be followed in
order to complete a merger. The number of BSI Mobile users as of August 17, 2021 is more than
2.7 million users or an increase of 79.4% since the beginning of 2021 on a YoY basis with active
user growth reaching more than 1.1 million customers or an increase of 92.5% YoY . In terms of
performance fee-based mobile banking, there was an increase of IDR 12.9 billion or up 71.85%
since the beginning of 2021 on a YoY basis. The increase was also driven by the high activity of
shopping payment transactions carried out by BSI customers in e-commerce such as Tokopedia
and Shopee which experienced an increase.

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 References

Bank Syariah Indonesia . (2021). Bank Syariah Indonesia .

Bisnis ID. (2020). Ini Lho, Alasan BRISyariah (BRIS) jadi Survivor Merger Bank Syariah
BUMN. Finansial Syariah.

Bisnis ID. (2021). Resmi Merger 1 Februari, Ini Kinerja 3 Bank Syariah BUMN. Siapa Paling
Oke? Finansial Syariah.

Cermati.com. (2021). Bank Syariah: Prinsip yang Diamalkan dan Manfaat yang Didapat.
Prinsip-Prinsip Islam dalam Transaksi Keuangan Syariah.

CNN Indonesia. (2021). 180 Juta Umat Muslim, Baru 30 Juta Jadi Nasabah Bank Syariah.

IDN Times. (2021). Produknya Gak Kalah dari Bank Konvensional. Ini Sederet Produk Bank
Syariah Indonesia yang Banyak Manfaat.

IDN Times FINANCIAL. (2021). PT. BANK SYARIAH INDONESIA TBK [BRIS].

LIPUTAN 6. (2021). Forbes Umumkan 20 Bank Terbaik di Indonesia 2021, Siapa Teratas?

Otoritas Jasa Keuangan. (2021). Bank Syariah.

PRESSREALEASE.id. (2021). Bank Syariah Indonesia Fasilitasi Produk dan Layanan

Perbankan Syariah untuk MUI.

Qoala. (2021). Bank Syariah Indonesia: Sejarah Merger, Saham, hingga Tujuan.

Republika.co.id. (2021). Konsep Perbankan Syariah di Indonesia Telah Dimulai Sejak 1988.
Perjalanan Lahirnya Perbankan Syariah Indonesia.

tirto.id. (2017). Geliat Perbankan Syariah Indonesia.

VOI. (2021). Bank Syariah Indonesia Sukses Sejajari Bank Syariah Dunia.

Xendit. (2021). Sejarah dan Pengertian Bank Syariah. Pengertian dan 4 Macam Produk Bank
Syariah di Indonesia.

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Appendixes

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