Developing Islamic Financial Centers In Indonesia and ... · PDF fileDeveloping Islamic...
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Developing Islamic Financial CentersIn Indonesia and Opportunity & Challenges of Islamic Banking
Agus SudiartoPresident Director
PT Bank Syariah Mandiri
Mr. Agus SudiartoPresident Director of PT. Bank Syariah Mandiri
Mr. Agus Sudiarto was appointed as the President and Managing Director of Bank Syariah Mandiri on May 2014, one of the largest Islamic banks in Indonesia. Prior to his appointment as the Managing Director, he served as Senior Vice President of Special Asset Management Bank Mandiri (2010-2014), Senior Vice President of Assets Management of Bank Mandiri (2007-2007), and Vice President Recovery Manager of Bank Mandiri in Medan (2005-2006). He obtained his law degree from the University of Indonesia in 1988, and Master of Management from the Faculty of Economics, University of Indonesia in 2004.
He is trained under the following programmes, among others, Corporate Debt Management in Singapore; SME & Comm. Banking Attachment Program in New York, U.S.A.; High Impact Leadership in New York, U.S.A.; INSEAD Blue Ocean Strategy in Fountainebleau, France; Leading Team for Growth and Change in Virginia, U.S.A.; Training Great Leader Programme; Training Program Phase III Great Leader; Accountability Session 4DX; Service Excellence for Senior Manager; Mandiri New Horizon Workshop; 60 Hours Coach Certification Training.
Mr. Sudiarto is an Indonesian citizen and was born in Jakarta in 1964.
Contents 1. Opportunities & Challenges
2. Islamic Financial In Indonesia
3. Support for Islamic Financial Development in Indonesia
3
4. Bank Syariah Mandiri (BSM) Profile
Contents 1. Opportunities & Challenges
2. Islamic Financial In Indonesia
3. Support for Islamic Financial Development in Indonesia
4
4. Bank Syariah Mandiri (BSM) Profile
Summaries of Opportunities & Challenges
5
• Islamic banking is growing rapidly but its penetration is still low
• The Potential number of moslem population in Indonesia
• Hajj Fund
• Infrastructure development
Domestic Market
Rapid growth of global Islamic financial
Indonesia has an opportunity to become one of Islamic economic center
Global Syariah Growth
Opportunities Challenges
• Low public awareness of Islamic banking
Market Dynamic
Inadequate in capital and industry scale
Inadequate in human resources and IT
Limited product and service
Internal capability
Source: GIFR 2015
In the assessment of Global Islamic Financial Report 2015, Indonesia ranked at 7th. That means Indonesia is potential and conducive for Islamic finance development. Based on assessment factors, there are optimism that Indonesia ranked will be higher in next period.
VARIABLES AND % WEIGHTS
VARIABLES%
WEIGHTS
Number of Islamic Banks 21.8Central Sharia Supervisory Regime 19.7Number of Institutions involved in Islamic Finance Industry
20.3
Size of Islamic Financial Asset 13.9Size of Sukuk 6.6Moslem Population 7.2Education and Culture 5.7Regulatory and Legal Infrastructure 4.9
Islamic Finance Country Index (IFCI, 2015)
Opportunities: Conducive Islamic Countries
6
7
• In 2012, around~ 17% of Indonesia's population is in middle class income or achieved > 42 million and will continue to rise to 69 million in 2020
• This fact shows that there are huge market potential that can still be achieved, especially for Islamic banking
* Populasi indonesia 2012: 248,2 juta
Developments and Projections of Middle Class Income in Indonesia (Million)
10 Countries With Largest Muslim Population in the World, 2015
Sumber: mapsofworld.com, wikipedia
32
35
71
74
77
77
134
167
176
209
Morocco
Algeria
Turkey
Iran
Nigeria
Egypt
Bangladesh
India
Pakistan
Indonesia
Share World Muslim Population
12.5%
10.7%
9.0%
7.6%
6.0%
3.9%
3,7%
3.7%
1,9%
1,6%
41.6
68.2
0
10
20
30
40
50
60
70
80
Middle
2012
2020
39%
Sumber: BCG Analysis
Opportunities: The Potential number of moslem population in Indonesia
0%
10%
20%
30%
40%
50%
60%
0% 100% 200% 300%
Banking Penetration
Islam
ic Ba
nkin
g Mar
ket S
hare KSA
Kuwait
Bahrain
Qatar
UAE Malaysia
Jordan
Bangladesh
PakistanIndonesia
Egypt
Turkey
Banking Penetration and Participation Asset Market Share
Indonesia Islamic Banking is a potential market, but still low in penetration. Population above 15 years who have bank account only 36.1%
Population, Account Bank (% Age 15+)
Source: The little Data Book on Financial Inclusion 2015 Source: EY-world-islamic-banking-competitiveness-report-2014-15
Opportunities: Low Banking Penetration
8
333 385 455 515606
93117
143153
159
5053
6984
89
1417
2024
28
2010 2011 2012 2013 2014
GCC ASEAN Turkey & ROW South Asia
9
Global Islamic Banking Assets (USD Miliar) Islamic Banking Assets Contribution in QISMUT+3 (2014)
Sumber: World Islamic Banking Competitiveness Report 2016, EY
490
882
16%1%
2%
3%5%
9%
11%
16%17%
36%
Pakistan Bahrain Indonesia Turkey Qatar
Kuwait UAE Malaysia KSA
Opportunities: Rapid growth of global Islamic financial market
QISMUT: Qatar, Indonesia, Saudi Arabia, Malaysia, the United Arab Emirates and Turkey
51.16
140.29
423.28
338.11
35.63
81.03
Turki
UniEmirat
Malaysia
SaudiArabia
Indonesia
Qatar
10
Asset growth of Islamic Banking In QISMUT Financing Growth of Islamic Banking in QISMUT
Sumber: Bank Sentral, BMI, EY, Islamic Corporation for the Development (ICD) & Thomson Reuters
23%
CAGR 2008 - 2013
34%
Qatar Indonesia Saudi Arabia
23% 6%
Malaysia UAE Turkey
24%
9%
USD billion
31,3%
CAGR Islamic Bank
2008 - 2013
33,4%
11,2%
20,5%
14,6%
29,3%
17,4%
CAGR Conven2008 - 2013
15,9%
3,1%
9,8%
4,9%
18,3%
Opportunities: Indonesia has an opportunity to become one of Islamic economic center
“the potential people who want to go for Hajj about 500,000 people per year, multiplied by an initial deposit of IDR25 million Hajj registration will be an additional funds with outstanding IDR12.5 Tn at least every year. The half of IDR12.5 Tn of potential funding will be placed in sharia securities (state bonds) and the other will be placed in banks”
(Director General of Hajj and Umrah (PHU), Ministry of Religious Affairs, Republic of Indonesia)
11
Opportunities: Hajj fund Management
439,100
92,41920,167
62,2886,601
78,346
144,795 31,483
Road Construction
Railwai City Transport Water Transportation
Electrical Construction
Water Supplay Information, Communication
& Tech
Total
Estimated needs of Indonesian development in five years Indonesian Infrastructure Budget year to year
8,270
10,591 11,317
12,913
21,037 22,778
2011 2012 2013 2014 2015 2016
• As the theme of government work plan, the infrastructure sector became one of the priority sectors nationaldevelopment. State budget for infrastructure spending in 2016 is USD22.78 billion
• The need of investment of infrastructure up to USD439 billion on 2015 – 2019 (source: The NationalDevelopment Planning Board (Bappenas). Therefore, the government need other funding resources to meetinfrastructure financing beside state budget. Islamic banking are expected to be alternative funding resources
• Indonesia Islamic banking has been contributing in financing infrastructure USD1.25 billion• BSM has been contributing to infrastructure development in Indonesia through financing amounted USD501
million and project based sukuk amounted USD273 million
USD million USD million
Opportunities: Infrastructure development
12
Conventional Loyalist
Floating Mass Market
SyariahLoyalist
Financial markets are dominated by
floating mass market
• Recognition and preference for products and services offered are still relatively low
• Lack of incentives for customer change their preferences from conventional products
• Islamic banking still faces public misperception among other related terms as well as the complexity of akadand perception no different with conventional bank product
Challenges: Low public awareness of Islamic banking
13
Challenges: Inadequate in capital and industry scale
14
• Average core capital of islamic bank in Indonesia are still limited compare to other islamic countries
• Regulation of capital adequacy are more tight based on Basel III, so bank need more capital
• From 12 islamic banks, 11 bank had core capital less than Rp5 trillion (USD66,30 billion)
• Impact: islamic banks be limited to expand office network, develop infrastructure, and services (under regulation opening of the network based on core capital)
• Islamic bank have challenge to increase efficiency and being favorite for customer and employee candidate
• products of islamic banking are very common and still imitating conventional banking products
• inadequate services and a limited number of office network
• Inadequate communication and socialization factor
Challenges: Limited product and service
15
• Indonesian education system does not yet support the needs of sharia industry
• Limited educational institution with islamic financial courses
Improper planning to requirement of IT according to business development
Challenges: Inadequate in human resources and IT
16
Contents 1. Opportunities & Challenges
2. Islamic Financial In Indonesia
3. Support for Islamic Financial Development in Indonesia
17
4. Bank Syariah Mandiri (BSM) Profile
The development of Islamic banking in Indonesia is society driven
18
The development of Islamic banking in Indonesia is driven by society or bottom-up , to meet society needs with prioritize on real sector
Indonesia Malaysia
This is different with development of Islamic banking in Malaysia that more reliant on financial sector and dominated by government driven
Indonesian Sharia Financing Milestone: Preceded by Islamic Micro Finance Institution in the 1990s
1980 1994
Baitul Tamwil Salman Bandung, Kopersi Ridho Gusti Jakarta
IslamicBanking
Takaful
FinancialMarkets
Sukuk
1992 1999
2000
1st Islamic Bank Bank Muamalat Indonesia
2001
2002
2003
2004
2005
2006
2007
2008
2009
• 1st Islamic Branch Bank IFI Syariah
• 2nd Islamic Bank Bank Syariah MandiriOfficeChanneling
Islamic Banking ActUU No 21/2008
1st Takaful CompanyAsuransi Takaful Keluarga
1st Takaful BranchAsuransi Great Eastern
1st Islamic Re-Insurance ReINDO
• Islamic Money Market (IMA Certificate)
• Jakarta Islamic Index
• Islamic Capital Market
• ICM Master Plan (2005)
1st Corporate Sukuk Indosat (Mudharabah)
Sukuk Guidelines (2006)
Sukuk Act & Government Sukuk
2010
LKMS
to Present …19
The presence of islamic banking encourages the development of Islamic financial institutions
Islamic Banking
Other islamic financial institutions (insurance,
multifinance, etc)
Islamic education (law, economy, finance, etc)
Sharia legal services (arbitration, court, etc)
Sharia supervisory board
Islamic financial instruments (islamic securities, retail
sukuk, islamic mutual funds, etc)
Other islamic industry (hotel, IT, MLM)
20
21
Benchmark: Government support plays critical role to support growth
Saudi Arabia –
Growth mostly driven
by market demand –
strong retail client
affinity to Syariah,
despite limited
regulatory support
Bahrain – Syariah banks as an
institutional gateway to broader
Saudi Arabia regions; active
development of regulatory and
industry bodies support, e.g.
AAOIFI & CIBAFI1
1. AAOIFI stands for Accounting and Auditing Organization of Islamic Financial Institutions, CIBAFI stands for The Council of Islamic Banks and Financial Institutions 2. BIBD stands for Bank Islam Brunei DarussalamSource: Expert interviews, BCG analysis
Malaysia – Regulation & government support as
strongest drivers, besides tax incentives,
government leadership, and GLCs involvement.
Coordinated policy framework involving
stakeholders established
Brunei – Government role as
consolidator and industry
builder. Formed BIBD2 as
largest bank in Brunei which
most shares owned by Ministry
of Finance
SINGAPORE• Singapore’s goal of becoming a regional
Islamic finance hub has been dealt a blow by DBS Group Holdings Ltd.’s decision to close its Shariah banking unit. The Islamic Bank of Asia will be gradually wound down as it was “unable to achieve economies of scale,” in a Sept. 14
CAMBODIAVIETNAM
PHILIPPINES
• Islamic Banking Asset: USD1,65M• Market Share: <1% of Banking System• CAGR (2011-2015): 0.7%• Al-Amanah Islamic Investment Bank of
Philippines (AAIIBP), initially established as Philippine Amanah Bank in 1973, remains the sole Islamic bank in the country and has eight branches in Mindanao, as at the end of 2014
BRUNEI
• Islamic Banking Asset: USD4,976.3M• Market Share: 41.5% of Banking System• CAGR (2011-2015): 3.7%• Bank Islam Brunei Darussalam (BIBD)
remains the only retail Islamic bank in the country
THAILAND
• Islamic Banking Asset: USD3,328M• Market Share: 0.7% of Banking System• CAGR (2010-2014): 2.8%• the Islamic Bank of Thailand (IBank) the
nation’s sole Shariah bank
MALAYSIA
• Islamic Banking Asset: USD159,691M• Market Share: 21.3% of Banking System• CAGR (2010-2015): 14.3%
INDONESIA
• Islamic Banking Asset: USD21,492M• Market Share: 4.8% of Banking System• CAGR (2010-2015): 24.9%
22
Benchmark: Islamic Banking Development in South East Asia• Islamic banking is
fairly entrenched in Moslem-majority countries such as Malaysia, Indonesia and Brunei
• Malaysia's Islamic banking is the largest in ASEAN with market share more than 20%
• Indonesia is 2nd
largest Islamic banking in ASEAN, but has strong potential growth in banking to support growing economic activity
Source: BI
Islamic Financial in Indonesia: Number of Players
Source: OJK
23
Rp billion
24
Source: OJK
Islamic Financial in Indonesia: AssetsRp billion
25
Source: OJK
Type of Islamic Bank in Indonesia
Islamic Bank
Full Fledge Islamic Commercial Bank
Islamic Business Unit of a
Conventional Bank
Independent Islamic Bank
Islamic Bank owned by Conventional
Bank
Islamic Rural Bank
Islamic Banking in Indonesia: Number of Bank
3 3 35 6
11 11 11 11 12 12 12
19 20
26 2725
23 24 24 23 22 22 22
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2016
Islamic Commercial Bank Islamic Business UnitNumber of banks
92 105 114131 138 150 155 158 163 163 163 163
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q12016
Islamic Rural Bank
1. The Islamic banking industry currently consists of 12 Islamic Commercial Banks, 22 Islamic Business Units and 163 Islamic Rural Banks. The number of Islamic banks increase especially after the issuance of Islamic banking regulation (UU Perbankan Syariah)
2. There was 1 Islamic Business Unit closed (HSBC) in 2013
3. There was 1 Islamic Business Unit spin off to Islamic Commercial Bank (BTPN Syariah) in 2014
26
Source: OJK
98145
195242 272 296 298
2010 2011 2012 2013 2014 2015 Mar-16
2,9113,507 4,068
4,7125,343 5,836 5,870
2010 2011 2012 2013 2014 2015 Mar-16
68103
148184 199 213 213
2010 2011 2012 2013 2014 2015 Mar-16
Islamic Banking in Indonesia: PerformanceIslamic banking growth two times higher than the growth of conventional banking.
Islamic Banking
Conventional Banking
FinancingCAGR
25.6%
Third Party FundsCAGR
24.9%
Asset
CAGR
24.9%
CAGR
17.8%
Financing
CAGR
13.0%
Third Party FundsCAGR
Asset
76115
148184
218 231 233
2010 2011 2012 2013 2014 2015 Mar-16
1,6982,097
2,5603,109
3,4753,845 3,787
2010 2011 2012 2013 2014 2015 Mar-16
2,263 2,669 3,078 3,480 3,897 4,182 4,236
2010 2011 2012 2013 2014 2015 Mar-16
CAGR periode 2010-2015 27Source: OJK
14.9%
Rp Triliun
Rp Triliun
Rp Triliun
Rp Triliun Rp Triliun
Rp Triliun
9 11 1218 19
22 24
2010 2011 2012 2013 2014 2015 Mar-16
320428
513605
703 790 812
2010 2011 2012 2013 2014 2015 Mar-16
Overview Indonesia Islamic Banking: Performance
Capital Adequacy Ratio (CAR) Financing to Deposit Ratio (FDR)
Islamic Banking
Conventional Banking
(%)
Equity
(%)
(%)
(%)
Rp Triliun20.4%
19.8%
Islamic banking CAR at 15.02% decline compared to Dec 2014, which reached 15.74%. CAR decline mainly due to the implementation of regulation about capital charge for operational risk in 2015
16.25 16.63 14.13 14.42 15.74 15.02 14.90
2010 2011 2012 2013 2014 2015 Mar-16
89.67 88.94100.00
100.3291.50 92.14 91.76
2010 2011 2012 2013 2014 2015 Mar-16
Rp Triliun
17.18 16.05 17.43 18.13 19.57 21.39 22.00
2010 2011 2012 2013 2014 2015 Mar-16
75.21 78.77 83.58 89.70 89.42 92.11 89.60
2010 2011 2012 2013 2014 2015 Mar-16
28Source: OJK
Capital Adequacy Ratio (CAR) Financing to Deposit Ratio (FDR)Equity
Islamic Banking in Indonesia: Market Share
Bank Syariah Mandiri is:
• the largest islamic banking in Indonesia. In March 2016 asset BSM reached Rp71.55 trillion with market share 24.03%
• ranked 19th among 119 national banks
• ranked 9th among ASEAN islamicbank
• the only Islamic banking in Indonesia that can operate in Asia’s region based on regulatory capital (Bank BUKU III)
5.869,9895.17%
Others226,2275,97%
BSM71,55
24,03%
Islamic Banks297,774,83%
Rp trillion
3.786,97 94,66%
Others, 162,92 76,31%
BSM,50,57
23,69%
Islamic Banks 213,485,34%
Asset
Financing
4.236,30 94,79% Others 169,50
72,85%
BSM63,16
27,15%
Islamic Banks 232,665,21%
Deposits
Conventional Banks
Conventional Banks
Conventional Banks
March 2016
29Source: OJK
Islamic Insurance Industry in Indonesia: Number of Players
5 5 5 58 9
38 4044 44 45 46
2011 2012 2013 2014 2015 Q1 2016
Full Fledge Business Unit 1. The Islamic Insurance industry currently consists of 9 Full Fledge and 46 Business Units.
2. There was 24 Islamic Life Insurance, 20 Islami Non-Life Insurance and 3 Islamic Re-Insurance.
20 20 20 2124 24
2022
26 25 2628
3 3 3 3 3 3
2011 2012 2013 2014 2015 Q1 2016
Inslamic Life Insurance Islamic Non-Life Insurance Islamic Reinsurance
Source: OJK 30
Islamic Insurance Industry in Indonesia: Assets
9,202 13,239
16,648
22,365 26,519
28,967
2011 2012 2013 2014 2015 Q1 2016
Assets of the Islamic Insurance industry currently are Rp28,97 trillion, with a market share of 3.32%
Assets Rp billion Market ShareIslamic
Insurance Industry3.32%
Conventional Insurance Industry96.68%
7,275 10,016
12,804
18,052
21,614 23,618
1,927 3,223 3,844 4,313 4,313 4,313
2011 2012 2013 2014 2015 Q1 2016
Inslamic Life Insurance Islamic Non-Life Insurance & Re-Insurance Rp billion
Source: OJK31
4,295
22,664 24,639 23,768
22,350 25,453
2011 2012 2013 2014 2015 Q1 2016
Islamic Financing Industry in Indonesia
2 2 2 3 3 3
12
32
42 4137 37
2011 2012 2013 2014 2015 Q1 2016
Full Fledge Business Unit 1. The Islamic Financing industry currently consists of 3 Full Fledge and 37 Business Units.
2. Assets the Islamic Financing industry currently are Rp28,97 trillion, with a market share of 2.92%
Islamic Financing Industry2.93%
Conventional Financing Industry97.07%
Number of Players
AssetsRp billion
32Source: OJK
Market Share
Contents 1. Opportunities & Challenges
2. Islamic Financial In Indonesia
3. Support for Islamic Financial Development in Indonesia
33
4. Bank Syariah Mandiri (BSM) Profile
a. Determine strategy and direction of Islamic banking development in National Medium Term Development Plan (RPJPM)• Encourage the placement of government funds in Islamic Banking. • Encourage the government financial transactions through Islamic Banking such as
payment of salaries • Increasing investment to develop Islamic Finance human resource• Encourage innovation in Islamic Finance included products and services innovation
through research and study that conducted by Committee, Government, Regulators and industry.
b. Appointing Islamic Banking to:• Implement Hajj Deposit Beneficiary Bank (Bank Penerima Setoran Haji) and manage hajj
fund• facilitate the salaries payment of civil servant, TNI & POLRI. If there are two or three
banks appointed as payment bank, one of them must Islamic Banking. • become government partner in financing program• open Islamic Banking Outlet in parent company. It is make network expansion efficient
Government Support Is The Key Of Islamic Banking Development Through Policy and Strategy (1/2)
Policy &
Strategy
34
c. Determine liquidity instrument for Islamic Banking such as Bank Indonesia ShariaCertificate (SBIS), Bank Indonesia Sharia Deposit Facility (FASBIS), Term Deposit, Repurchase Order, Mudharabah Interbank Investment Certificate (SIMA)
d. Providing technical program assistance of high value activity, priorities, and strategic sector for islamic banking
e. Establishing National Islamic Financial Committee (KNKS) in early 2016. The committee is to be led by President with Governor of Central Bank, several ministers and representative of national sharia council as members. KNKS function is to:• harmonize legislation with other relevant rules• increase Islamic financial literacy, and • develop all things needed for economic development and Islamic finance at the macro
level
f. Issuing Codification Product. It is giving easiness for Islamic Banking to release new product and activities as listed in codification such as Hedging
35
Government Support Is The Key Of Islamic Banking Development Through Policy and Strategy (2/2)
Policy &
Strategy
Ratify regulation:
a. Islamic banking Law. It is making Islamic Banking equal with Conventional Banking and increasing the number of Islamic bank, from 5 to 11 in less than 2 years
b. Islamic Government Securities Law. It is an effort to increase share of Indonesia development financing that using sharia scheme
c. Taxation Law. Eliminating regulation double taxation of murabahah transaction
Law
Conducting Islamic banking campaign for islamic financial and islamic products education
Public
Education
36
.. And also support through Law and Public Education
Contents 1. Opportunities & Challenges
2. Islamic Financial In Indonesia
3. Support for Islamic Financial Development in Indonesia
37
4. Bank Syariah Mandiri (BSM) Profile
BSM is the biggest sharia bank in Indonesia
38
The Biggest Sharia Bank in Indonesia Large Operational Network Throughout Indonesia
Deposit:Rp 63.79 Trillion
ATM:1.015 Unit
Asset:Rp72.02 Trillion
Financing:Rp52.70 Trillion
Outlet:136 KC, 432 KCP, 60 KK,145 PP dan 50 KLG
RO 3 Jabodetabek
RO 4 Jabar, Jateng, DIY
RO 5 Jatim, Bali
RO 6 Kalsel, Kaltim, Kalbar
RO 7
RO 1 Aceh, Sumut, Riau
RO 2 Sumsel, Sumbar, Jambi, Lampung
Sulsel, Sulteng, Jayapura
7 Regional Office
June 2016
BSM leads the market share of Islamic banking
39
Such as Islamic banking industry that grow twotimes faster than conventional banks, BSM has aCAGR of 16.72%.With their current asset, BSM is the market leaderin the Islamic banking industry in Indonesia withmarket share amounted
BSM total financing reached Rp50.78 trillion
Financing has increased from year to year. BSMmarket share of the finance portfolio amounted23.69%
CAGR of financing by BSM in the last 5 yearsamounted to 16.34%
Rp Trillion
Total deposits reached Rp63.16 millionWith a market share in deposits amounted to27.15%
CAGR of deposits in BSM in the last 5 yearsamounted to 16.46%
22.0432.48
48.67 54.2363.97 66.96 70.37 71.55
2009 2010 2011 2012 2013 2014 2015 Mar-16
16.0623.97
36.6644.75 50.46 49.13 51.09 50.78
2009 2010 2011 2012 2013 2014 2015 Mar-16
19.3429.00
42.62 47.4156.46 59.82 62.11 63.16
2009 2010 2011 2012 2013 2014 2015 Mar-16
BSM leads the market share in Asset, Financing and Funding
Asset
Financing
Funding
40
Bank Syariah Mandiri has New Vision and Mission
1. Achieving sustainable growth and profit exceeding industry average
2. Improving the quality of products and services based on technology that exceeds customers expectation
3. Prioritizing low-cost fund collection and finance disbursement on Micro and SME segment
4. Developing business based on universal sharia values.5. Developing talent management and sound working environment6. Increasing awareness towards the society and environment
Vision
Mission
The Leading and Modern Sharia Bank
41
5 Priority Products
BSM Priority Products
1. Gold Installment and Pawning
3. Griya BSM (BSM Mortgage)
2. Mabrur Junior & BSM Saving
5. Micro financing (Consumptive & productive)
4. Pension financing
42
Several Awards that BSM achieved in 2016
Service Excellence (MRI):- The Best Service Overall- The Best Teller- The Best ATM- The Best Telepon- The 2nd Best CS- The 2nd Satpam
Triple A Islamic Award (The Asset):- The Best Islamic Bank- The Best Islamic Retail Bank- The Best Islamic Trade Finance Bank
Digital Brand (Infobank):- BSM Card: Full Fledge Islamic Bank Debit Card Category- Tabungan BSM: Saving Account Product for Full Fledge Islamic
Bank Category- Bank Syariah Mandiri: Full Fledge Islamic Bank Category
43
One of BSM Strengths is Strategic Alliance and Integrate with Mandiri Group
Strengthening HR Professional
The Support Strategy of Bank Mandiri to BSM not only for business development, but also focusing on 3 main enablers, i.e:
• Assignment for Directors, Commissioner, Senior Management and several Advisor are selected from BM to BSM;
• Education program and training for BSM employees in Mandiri University
• Join employees selection and recruitment processes with MandiriGroup
• Internship Program for BSM employees in Bank Mandiri
• Participation of BSM employees in Bank Mandiri Culture Program (Mandiri Excellence Award)
• Joint procurement for office equipment and vehicles
• Leasing and rent Bank Mandiri’sbuilding
• BSM Debit Card printing via Electronic Channel Group Bank Mandiri
• Preparation of guidelines, socialization, both Key Risk Indicator(KRI) and Loss Event Database (LED)
• Application Development Corsys to manage Risk Control Self Assessment(RCSA) and LED
• Integration of ATM BSM and EDC BSM into ATM and EDC Bank Mandiri
• Sharia Banking Services in Bank Mandiri outlet, such as account opening and transaction;
• Co-branding of Bank Mandiri e-Money
• Marketing BSM Gadai Emas via opening Kantor Layanan Gadai (KLG) BSM in Bank Mandiri outlets
• Gold Pawning selling through banchless banking agent (LakuPandai) Bank Mandiri
• Credit Asset Purchase, Referal, Club deal with Wholesale Banking customer of Bank Mandiri
• Participate in sector solution for Bank Mandiri customer
Operational Excellence Business Development
44
Bank Syariah Mandiri shows a good financial achievement
Items June 2015 June 2016 Growth YoY
Nominal %
1. Assets 66,954 72,023 5,069 7.57%
2. Financing 50,443 52,706 2,264 4.49%
3. Funding 59,164 63,792 4,628 7.82%
a. Current Account 6,686 7,104 418 6.25%
b. Saving 22,046 24,527 2,481 11.25%
c. Time Deposits 30,433 32,162 1,729 5.68%
% CASA 48.56% 49.58%
4. Total Equity 5,073 5,782 710 13.99%
Rp Billion
45
Also a better performance in financial ratios
Ratios June 2015 June 2016
1. ROA 0.56% 0.62%2. ROE 5.32% 6.14%3. Net Revenue (~NIM) 6.34% 6.54%4. Fee Based Ratio 14.51% 12.03%5. BO/PO 94.56% 93.63%6. Cost to Income Ratio 69.87% 63.78%7. Cost of Fund (DPK) 4.26% 3.73%8. FDR 85.26% 82.31%
9. NPF Absolut - (Miliar Rp) 3,355 2,930
10. NPF Nett - (%) 4.70% 3.74%
11. Financing Cash Provision 45.60% 59.58%
12. PPAP Ratio 103.02% 106.74%
13. CAR 11.97% 13.69%
Thank You
46