BSI Supports OJK's Efforts to Strengthen Islamic Banking through Spin-off Policy

Positive Response to Regulatory Initiative

PT Bank Syariah Indonesia Tbk (BRIS), or BSI, has expressed strong support for the Financial Services Authority (OJK)'s recent initiative to strengthen the Islamic banking sector through spin-off policies. BSI's Deputy President Director, Bob Tyasika Ananta, emphasized that the emergence of new Islamic banks resulting from these spin-offs will create a more competitive market environment.

Enhancing Market Competition and Innovation

According to Bob, as the largest Islamic bank in Indonesia, BSI is currently focused on competing with conventional banks while also welcoming competition within the Islamic banking sector. He stated that having more Islamic banks of similar size would create optimal market competition, driving both competitiveness and innovation in the national Islamic banking sector. The existence of 'sparring partners' in the market is seen as crucial for continuous quality improvement.

Addressing Current Challenges

The OJK's initiative comes as the Islamic banking sector faces challenges related to relatively small capitalization, which affects its competitiveness due to limited economies of scale. The Chief Executive of Banking Supervision at OJK, Dian Ediana Rae, previously highlighted that the spin-off policy is expected to address this issue by strengthening the industry's structure. The regulator is pushing for the emergence of large-scale Islamic banks within the next 1-2 years.

Future Market Outlook

The OJK envisions the development of 3-4 large Islamic banks that can potentially compete with BSI in the near future. This strategic move is expected to not only enhance competition but also contribute to the overall growth and resilience of Indonesia's Islamic banking sector. As the market evolves, industry players like BSI are preparing to adapt to the changing competitive landscape while continuing to improve their services and product offerings.