BSI Stock Plunges After Rumors of Muhammadiyah Withdrawing Rp13 Trillion

Based on Yahoo Finance data, the share price of PT Bank Syariah Indonesia (BSI) reached Rp2,130 per share on Monday (10/6/2024). This is a 2.29% decrease from the closing price on Friday (7/6/2024) of Rp2,180 per share.

The volume of shares traded today reached 23.35 million shares with a frequency of 7,000 times and a transaction value of Rp49.65 billion. The market capitalization of the issuer with the code BRIS is recorded at Rp98.26 trillion.

A downward trend in BRIS shares has actually been occurring for almost a week, specifically since June 4, 2024, when it was still at Rp2,280 per share. The day after, the share price fell along with news of Muhammadiyah's fund withdrawal, amounting to Rp13 trillion.

Before this news circulated, Muhammadiyah had published an announcement from the Muhammadiyah Central Leadership on May 30, 2024. Muhammadiyah appointed Bank Syariah Bukopin, Bank Mega Syariah, Bank Muamalat, and regional sharia banks.

According to *Katadata*, the announcement was signed by the Chairman of PP Muhammadiyah, Agung Danarto, and the Secretary of PP Muhammadiyah, Muhammad Sayuti, with the memo stating fund consolidation.

The Chairman of PP Muhammadiyah, Agung Danarto, stated that the appointment of several banks was to follow up on a meeting between PP Muhammadiyah and Amal Usaha Muhammadiyah (AUM) regarding financial consolidation within AUM.

“With this, we request the rationalization of savings and financing at BSI with a transfer to other sharia banks that have been cooperating well with Muhammadiyah,” wrote Muhammadiyah's official announcement, quoted on Thursday (6/6/2024).

The Chairman of PP Muhammadiyah, Anwar Abbas, explained the reason for the fund transfer was that the organization's funds were too large in BRIS, so they needed to be spread to other sharia banks.

"From a business perspective, it can create concentration risk," said Anwar in a written statement on Wednesday (5/6). Anwar said that with the accumulation of excessively large funds, it was feared that other sharia banks would not be able to compete with BRIS.

Meanwhile, according to the Financial Services Authority (OJK), normatively, depositing and withdrawing funds is a common occurrence.

"If someone deposits Rp1 trillion, the bank must be prepared for withdrawals," said Dian Ediana Rae, Head of the OJK's Banking Supervision Executive Board, in a virtual press conference on the OJK's RDKB, Monday (10/6/2024).

According to him, BSI is still very liquid, and there are no issues to worry about regarding the fund withdrawal. Dian stated that the issue regarding the relationship between BSI and Muhammadiyah is outside the OJK's context.

"Only the parties involved know the specific reasons. I see a communication problem that needs to be improved between the customer and the bank," he said.

Speaking of the impact, Dian, quoting the provisions of POJK and Law No. 21 of 2011 concerning the Financial Services Authority (OJK), wants to see the development of sharia banking in the future accelerated. Therefore, the OJK actually wants the existence of the largest sharia bank like BSI to compete healthily.

(See also: BSI's Third-Party Funds Consistently Increase in the Last Two Years)