Heaptalk, Jakarta — Bank Syariah Indonesia (BSI) has obtained preliminary approval to open a branch in Saudi Arabia, specifically in Jeddah. This achievement comes after 1 year and 8 months of preparation.
This expansion marks the state-owned bank’s second branch in the Middle East, following its presence in Dubai. State-Owned Enterprises (SOEs) Minister Erick Thohir praised this strategic move after meeting BSI Acting President Director Bob Tyasika Ananta at the SOE Ministry’s office in Central Jakarta (05/05).
Under Indonesia’s newly revised SOE Law, the preliminary permit must be followed by thorough planning. The SOE Ministry will ensure BSI’s long-term strategy to achieve full operations in Saudi Arabia within the following year. “This will open significant opportunities for business-to-business (B2B) cooperation while strengthening the Hajj and Umrah ecosystem through sharia-compliant economic and financial services,” Erick said in Central Jakarta (05/05).
Targeting B2B collaboration in financial sector
According to him, the B2B collaboration will target the financial sector and create opportunities in people-to-people connections, including Hajj and Umrah fund management, logistics, and pharmaceuticals. Additionally, the potential financial circulation from Indonesian pilgrims is substantial.
He stated, “Currently, funds circulating in Indonesia from Umrah and Hajj activities reach around Rp29 trillion. Meanwhile, in Saudi Arabia, there is still approximately Rp23 trillion that we can tap into. With the right ecosystem, we can start capturing a share of these transactions.”
Furthermore, a breakthrough in borderless services between Indonesian and Saudi immigration is crucial. This service would allow Hajj permits to be processed directly from Indonesia. The initiative will be supported by newly inaugurated facilities, such as the dedicated Terminal 2F. “With this system integration, we will not only expedite Hajj and Umrah services but also begin shifting some digital payment transactions to be managed domestically, in line with the President’s directives,” Erick concluded.
