Owing to this merger, Bank Syariah Indonesia has assets of more than Rp240 trillion and is targeted to be included in the top 10 Islamic banks in the world.
JAKARTA (ANTARA) - Minister of State-Owned Enterprises (BUMN) Erick Thohir targets PT Bank Syariah Indonesia Tbk (BSI) to rank among the world's top 10 Islamic banks, as its assets surpassed Rp240 trillion.

"Owing to this merger, Bank Syariah Indonesia has assets of more than Rp240 trillion and is targeted to be included in the top 10 Islamic banks in the world. Hence, we pray for and continue to support the management of BSI to be able to realize the noble ideals in order to create a comprehensive sharia ecosystem not only in Indonesia but also in the world," Thohir noted in a discussion at ISEI Jakarta, Wednesday.

Although in comparison with other nations, Indonesia began implementing the Islamic financial system rather late, but as a country, with the largest Muslim population, it has its own advantages.

"Indonesia is projected to have a population of 184 million Muslim adults, of which over 50 percent are from the upper middle class and most work in the private sector," he expounded.

The general chair of the Sharia Economic Community also expounded that Islamic financial services are growing at a swift pace even as the pandemic ploughs on.

Islamic banking assets in 2020 grew by 10.9 percent, while conventional ones only clocked a 7.7-percent growth.

Likewise with third-party funds, Islamic banking recorded an increase of 11.56 percent, slightly superior to conventional banks that registered a rise of 11.49 percent.

"In terms of financing, Islamic banking recorded the largest growth of 9.4 percent, far ahead of conventional banking that only grew by 0.55 percent. In addition, market share of the Islamic capital market has reached 17.39 percent, and the number of cooperatives for savings and loans and sharia financing reaches 4115 units," the minister noted.

On the other hand, Thohir believes that the development of Islamic economics and finance in Indonesia also drew accolades from the international community during 2020.

This was apparent from the Islamic Finance Development Report 2020 that placed Indonesia in the second place globally and the Global Islamic Economy Indicator 2020 that placed Indonesia in the fourth position globally.

To achieve this target, the minister highlighted the importance of strong coordination between all stakeholders, including with communities and religious groups.

Furthermore, strengthening the halal value chain, Islamic finance, MSMEs, and digital sector are the four key strategies of the digital economy society.

"As a country with the largest Muslim population in the world coupled with the determination to work with morals, God willing, we will be able to respond to all challenges and be able to turn opportunities into prudent and sustainable growth," he affirmed.
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Translator: Kuntum K, Azis Kurmala
Editor: Fardah Assegaf
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