Jakarta. Bank Syariah Indonesia (BSI) on Wednesday welcomed a collaboration with B-Universe Media Holdings to enhance public knowledge of sharia banking and finance, emphasizing the need for greater awareness among Indonesian Muslims.

BSI President Director Hery Gunardi noted that while Indonesia has the world’s largest Muslim population, awareness and understanding of sharia banking remain significantly lower than that of conventional banking.

Partnering with B-Universe, a multi-platform media company operating in digital, print, and television networks, is expected to strengthen BSI’s campaign to educate the public about the benefits and principles of sharia banking, he said after hosting a discussion with the B-Universe leadership team.

“We intend to collaborate with B-Universe in raising awareness about sharia banking and its advantages for customers and the wider public,” Hery said at the BSI headquarters in Jakarta.

“Media support is crucial to our business. B-Universe, which has actively covered BSI’s journey and growth, has played a key role in disseminating accurate and reliable information about our initiatives. We hope this collaboration will continue to grow,” he added.

The B-Universe delegation included Executive Chairman Enggartiasto Lukita, CEO Rio Abdurachman, Deputy CEO Apreyvita Wulansari, and Corporate Secretary Ida Dewiyanti.

The meeting also addressed the challenges and future outlook of the sharia banking industry in Indonesia. Hery said that the biggest challenge is raising public awareness about how sharia banking operates beyond traditional savings and loans, highlighting its expanding services and tangible benefits for Indonesia’s Muslim population.

BSI’s Role in Indonesia’s First Bullion Bank
Last month, BSI made headlines after being entrusted with operating Indonesia’s first bullion banks together with the state-owned pawnshop company Pegadaian.

President Prabowo Subianto envisions Indonesia’s bullion bank as one of the largest in the world, providing sharia-compliant savings options for the country’s predominantly Muslim population.

Chief Economic Minister Airlangga Hartarto previously said that bullion banking aligns with Islamic financial principles, making it a viable alternative for saving for Hajj pilgrimages and other financial needs.

Gold has long been considered a safe investment, much like the US dollar, but with key advantages under Islamic finance. It retains value over time, provides stable returns without bank interest, and is immune to currency fluctuations, making it a secure asset in uncertain economic conditions.

The establishment of a domestic bullion bank is a strategic move to industrialize Indonesia’s gold sector, reducing reliance on foreign trading hubs like Singapore and Switzerland. Despite being one of the world’s top gold producers, Indonesia has traditionally conducted most of its gold trading and storage overseas.

Government data shows that Indonesia produces up to 60 tons of gold annually, with major mining operations in Papua, North Sumatra, and West Java. The new bullion banks aim to increase the economic value of Indonesia’s gold reserves, enhance the domestic gold trading system, and strengthen the national financial sector.

BSI Competing with Global Bullion Banks
The new role positions BSI alongside major global bullion banks such as JP Morgan, HSBC, and UBS, which operate in the London Bullion Market Association (LBMA), the world’s largest gold trading hub.

BSI itself is a merger of the sharia banking units of three state-owned banks -- BRI, BNI, and Mandiri -- making it Indonesia’s largest Islamic bank.

In November 2024, BSI launched BSI Gold, a 99.99 percent pure gold investment product, aimed at promoting stable and profitable sharia investments while encouraging asset diversification amid global economic uncertainty.

With its growing role in sharia finance and bullion banking, BSI is positioning itself as a key player in Indonesia’s efforts to modernize and expand its Islamic financial sector.