BSI's Third-Party Funds Consistently Increase Over the Past Two Years

The Muhammadiyah religious organization has confirmed it will move its funds from PT Bank Syariah Indonesia Tbk (BSI) to several non-state-owned banks.

According to *Katadata*, the exact amount of Muhammadiyah's funds held by Bank Syariah Indonesia is unknown. However, circulating information estimates the deposits to be around Rp 13 trillion.

Based on an announcement from the Muhammadiyah Central Leadership issued on May 30, 2024, it appointed Bank Syariah Bukopin, Bank Mega Syariah, Bank Muamalat, and several regional sharia banks. This announcement, signed by Muhammadiyah Central Leadership Chairman Agung Danarto and Secretary Muhammad Sayuti, cited fund consolidation as the reason.

Muhammadiyah Central Leadership Chairman Agung Danarto stated that the appointment of these banks followed a meeting between the Muhammadiyah Central Leadership and Muhammadiyah Business Entities (AUM) regarding financial consolidation within the AUM.

“We hereby request the rationalization of savings and financing at BSI with a transfer to other sharia banks that have a good working relationship with Muhammadiyah,” stated the official Muhammadiyah announcement, quoted on Thursday (June 6, 2024).

Muhammadiyah Central Leadership Chairman Anwar Abbas explained that the reason for withdrawing funds from BSI was due to the organization's excessively large deposit, necessitating diversification across other sharia banks.

"From a business perspective, this can create concentration risk," said Anwar in a written statement on Wednesday (June 5). Anwar stated that the excessive accumulation of funds could hinder other sharia banks from competing with BSI.

(Read *Katadata*: [There is a Risk, Muhammadiyah Shifts Savings from BSI to This Sharia Bank](https://katadata.co.id/finansial/keuangan/666140575b8cb/ada-risiko-muhammadiyah-alihkan-simpanan-dari-bsi-ke-bank-syariah-ini))

So, how much funding has BSI accumulated from its customers to date?

Based on BSI's annual financial report compiled by *Databoks*, third-party funds (DPK) collected by BSI reached Rp 293.77 trillion in 2023.

This deposit figure increased by 12.35% year-on-year (YoY) from Rp 261.49 trillion in 2022. Of the 2023 DPK total, savings, which constitute low-cost funds, reached Rp 124.73 trillion, or 40% of the total DPK.

According to *CNBC Indonesia*, Finance and Strategy Director Ade Cahyo Nugroho claims that BSI is one of the few banks in Indonesia with a large proportion of low-cost funds. This allows the bank to manage financing more freely due to lower funding costs.

"For a bank that's only three years old to be in the top 5, it shows the potential of Islamic finance is very strong, and we certainly hope it will continue to grow," said Cahyo in a press conference presenting the 2023 performance, Thursday (February 1, 2024).

Meanwhile, DPK in 2021, when BSI was inaugurated, totaled Rp 233.25 trillion.

The issuer with the code BRIS also recorded a net profit of Rp 5.7 trillion throughout 2023. BSI President Director Hery Gunardi stated that BSI's profit grew by 34% (YoY) from the previous Rp 4.26 trillion. This profit was driven by net profit-sharing income, which reached Rp 16.17 trillion, or a 3.88% increase.

"This high growth, all double-digit, needs to be appreciated; the growth of sharia banking. Hopefully, it will continue in the first quarter," said Hery in a public presentation of the Q4 2023 performance reported by *Katadata* on Thursday (February 1, 2024).

(Read also: [5 Banks and Sharia Units with Jumbo Assets in Indonesia 2023](https://databoks.katadata.co.id/datapublish/2024/01/25/5-bank-dan-unit-syariah-dengan-aset-jumbo-di-indonesia-2023))