Source file signed link, expires in 15 minutes
Extracted text 100
Page 1
G ROW I N G W I T H S U S TA I N A B L E M OV E M E N T P T BA N K SYA R I A H I N D O N E S I A , T b k S U S TA I N A B I L I T Y R E P O RT 2 0 2 3
Page 2
Introduction Economic Performance Social Performance Environmental Performance
Contents
2 INTRODUCTION
56 SOCIAL
PERFORMANCE
2 BSI Sustainability Strategy & Commitment 57 Employment Practices
6 Summary of Sustainability Performance 59 Fair and Quality Recruitment
7 Awards 61 Employee Turnover Rate
8 About Sustainability Report 61 Employee Remuneration System
12 Company Identity 63 Employee Performance Appraisal System
14 Company at a Glance 64 Employee Development and Training
22 President Director’s Speech 66 Managing Industrial Relationship
28 Sustainability Governance 67 Management of Employee Grievances
68 Occupational Health and Safety
40
70 Social & Environmental Responsibility
ECONOMIC
78
PERFORMANCE
ENVIRONMENTAL
41 Economic Performance Targets PERFORMANCE
and Objectives
41 Strategic Measures 79 Commitments, Targets and Program Plans
42 Economic Performance Achievement 79 Building An Environmentally Friendly
Culture through Green Campaign
45 Sustainable Finance Portfolio
82 Energy and Emission
48 Information Technology-Based Services
84 Water
49 Financial Product and Services
Responsibilties 85 Waste
88 Nature-Based Solutions
88 Enviromental Complaints
90 Independent Assuror Statement
92 List of Disclosure Based on
POJK No.51/POJK.03/2017
94 GRI Content Index
96 Feedback Form
D I S C L A I M E R A N D L I M I TAT I O N O F L I A B I L I T Y
This Sustainability Report for Financial Year 2023 of PT Bank Syariah Indonesia Tbk is the second sustainability report published alongside
the Bank’s Annual Report. This Sustainability Report contains BSI’s economic, social, environmental and governance performance related
to sustainable development achieved during the 2023 financial year.
This report also contains the Bank’s projections, plans, strategies, policies and objectives, which are classified as forward-looking
statements that do not reflect historical data. Forward-looking statements in this Report may be expressed as target information,
expectations, estimates, or business projections in this Report may be affected by developments in the process and implementation of
Sustainable Finance, as well as changes in economic, social and political conditions both nationally and regionally, and changes in laws,
policies and guidelines relating to the Islamic banking industry. Such forward-looking statements are subject to prospective risks and
uncertainties, which may cause actual developments to differ from what has been written in this report.
This Sustainability Report contains the word “Bank” or “BSI” or “We” which is defined as PT Bank Syariah Indonesia Tbk.
vi PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 3
G ROW I N G W I T H S U S TA I N A B L E M OV E M E N T
After successfully strengthening its foundation through
collaboration, PT Bank Syariah Indonesia Tbk (BSI) is
now advancing, growing, and moving forward to make
a significant contribution to the nation. On the path to
sustainability, BSI continues to innovate and collaborate,
with the goal of becoming a financial ally, social partner, and
spiritual companion to its customers and community. For us,
sustainability is a noble endeavor aimed at achieving shared
well-being.
As Indonesia’s largest Sharia bank and a Top 10 Global
Islamic Bank, BSI’s presence is expected to not only serve
as a catalyst for the development of the Sharia Economy,
contributing to the national economy, but also to drive the
growth of the green economy, benefiting the environment and
all stakeholders.
As such, we continue to advance through sustainable
initiatives, reinforcing the pillars of Islamic banking in
Indonesia, elevating human capabilities, and preserving the
universe, in accordance with God’s word:
“ ... And be good (to others) as Allah has been good to you.
Do not seek to spread corruption in the land, for Allah
certainly does not like the corruptors.”
(QS. Al Qashash: 77).
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 1
Page 4
Introduction Economic Performance Social Performance Environmental Performance
BSI’s Sustainability
Strategy & Commitment [SEOJK A1]
“BSI aspires to be the leading Islamic bank through
its BSI Sustainability Aspirations, which aim for a
world-class sustainability agenda. The aspiration has
three primary objectives: to reinforce comprehensive
governance and sustainability strategies, to integrate
sustainability into core business activities, and to
empower the ESG community in Indonesia and the
broader society.”
Sustainability has been the central focus of PT Bank Syariah Indonesia Tbk (BSI). As a Sharia-compliant bank, it is
our responsibility to protect the environment and promote future social well-being. This commitment is consistent
with the Maqasid Sharia, which guides our daily actions and decisions and includes the preservation of religion (Hifdz
Diin), life (Hifdz Nafs), intellect (Hifdz Aql), wealth (Hifdz Maal), lineage (Hifdz Nasb), and environment (Hifdz Bi’ah).
As an Islamic bank, BSI is committed to practices that are aligned with Maqasid Shariah which prioritizes preservation
of the environment for future generations. To that end, the Bank conducts Shariah-compliant investments and
operations, which inherently support the preservation of nature and ethical business conduct for the well-being of
communities and future generations, including in the Bank’s procurement practices and supply chain management.
ESG FRAMEWORK
The Priority of Vision “Becoming The Top 3 Banks in Sustainability in Indonesia”
Sustainable Finance
Implementation
Program (POJK Pillars SUSTAINABLE BANKING SUSTAINABLE OPERATION SUSTAINABILITY BEYOND BANKING
51/2017)
Sustainable Finance 1. ESG Aspect in Priority 3. Proactive Strategy on Data 7. Empowering Society &
1 Product or Service Sectors Privacy & Security Communities
Development (Workshop/Benchmarking 4. Equality & Diversity on 8. Sustainability Research to
Sector Policy Enhancement, work environment accelerate Indonesian low
Alignment with THI) 5. Green Working Culture carbon economy
Transformation
Initiatives
Development 2. Sustainable Product/ 6. Environmental Future
of Internal Services through Carbon Tracking &
2
Capability of (Sustainable Portfolio, Insetting
Financial Services Sustainability Sukuk)
Enablers Strengthening ESG Governance, Capacity Development & Disclosure
Alignment of
Organization, Risk
Management, SDGs
Governance
3
and/or Standard
Procedures with
Sustainable Finance Maqashid Hifdz Ad-Din (preserving religion), Hifdz An-Nafs (preserving life), Hifdz Al’Aql (preserving intellect),
Principles Syariah Hifdz Al-Maal (preserving wealth), Hifdz An-Nasl (preserving lineage), Hifdz Al-Bi’ah
(preserving environment)
2 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 5
Bank Syariah Indonesia (BSI) took a proactive step adopted a holistic and sustainable communication
by developing an ESG framework consisting of three approach to communicate corporate values, including
pillars: sustainable banking, sustainable operations, and BSI Sustainability Aspirations, to all employees and
sustainability beyond banking. By implementing this staff. This approach covers:
framework, BSI is committed to not only complying 1. Internal Communication
with applicable regulations, but also integrating ESG BSI understands that it is important to build a
principles into all of its operations. sustainable corporate culture through effective
internal communication, among others, an email
In addition, BSI also has a Sustainability Aspiration blast for all employees and workers that contains
that aims to become “Indonesia‘s Leading Islamic Bank the newest update concerning our sustainability
with a World Class Sustainability Agenda“. This can be initiatives and the Bank’s internal media to promote
achieved through three aspects which include: and educate the Company’s employees and staff
1. Strengthen Overall Sustainability Governance and regarding BSI’s corporate values.
Strategy
a. Establishment of ESG Committee 2. Training and Education
b. Sustainability KPIs become part of individual or We realize that education and training are the keys
business usual assessment to building strong awareness and understanding of
c. Providing ESG training to 100% employees the Bank’s corporate values. Therefore, BSI regularly
through the “Culture Awareness Program” provides sustainability (sustainable finance) training.
2. Integrating Sustainability into BSI’s Core Business
Activities 3. Various Internal Communication Platform
a. Achieving sustainable financing ratio >30% We also provide easy-to-access and understandable
b. Carrying out ESG Scoring as part of financing resources regarding our corporate values, whether
application. in digital media or in the Company Regulation.
c. Products offerings in line with ESG (Green
Sukuk, MSME financing) IMPLEMENTING AND CULTIVATING
3. Empowering Indonesian ESG community and SUSTAINABLE FINANCE AT BSI [SEOJK F1][GRI
Beyond 2-24]
a. Engagement with >20 stakeholders and The BSI Sustainability Aspirations, serving as the
influencers in the sustainability field foundation for BSI’s sustainability, are reflected in the
b. Carrying out sharia philanthropic activities that sustainable finance strategy in compliance with the
support government policies Financial Services Authority Regulation POJK No. 51/
POJK.03/2017 on the Implementation of Sustainable
COMMUNICATION APPROACH OF Finance for Financial Institutions, Issuers, and Public
CORPORATE VALUES INCLUDING BSI Companies. The sustainable finance plan is then
SUSTAINABILITY ASPIRATIONS [GRI 2-23] incorporated into BSI’s Sustainable Financial Action
BSI has determined a long-term sustainability goal in BSI Plan (RAKB), with a primary emphasis on:
Sustainability Aspirations, so it is important to ensure 1. Product portfolio
that corporate values are understood and implemented 2. Human Resources Development
by all our employees and workers. Therefore, BSI has 3. Governance & Organization
4. Policies, Standard Operating Procedure (SOP), and
Risk Management
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 3
Page 6
Introduction Economic Performance Social Performance Environmental Performance
BSI’s Sustainability
Strategy & Commitment
Furthermore, the four focuses are outlined in the The management of Sustainable Sharia Banking
governance policy and architecture of policies as well Principle policies & SOPs are outlined in the following
as the procedures that regulate Sustainable Sharia policies:
Banking Principles, namely BSI’s business sustainability 1. Standard Procedures of Policy & Procedure Making
principles based on the balance of economic, social, of Sustainable Sharia Banking Principal becomes
and environmental aspects and manage negative the fundamental value in the preparation of all Bank
impacts from the Bank’s operations and financing. Policies and Procedures.
BSI’s Sustainable Sharia Banking Principles include all 2. Standard Procedure for Corporate Planning,
principles of managing the Bank’s activities as follows: Corporate Work Plan & Budget (RKAP), Bank
1. Sharia Principles-principles of fairness, balance, and Business Plan (RBB) and Sustainable Finance Action
benefit. Plan (RAKB): Procedures that regulate obligations
2. Customers and procedures for the preparation of SFAP and
3. Business Strategies Sustainability Report.
4. Banking Operations 3. Standard Procedure for Corporate Secretary:
5. Risk Management Procedures that regulate the implementation of
6. Human Resources CSR
7. Community Development Program 4. Financing Policy, Standard Financing Procedures,
and Portfolio Guidelines: Regulates the
determination of financing criteria to support
Sustainable Financing in the Financing Policy and
Standard Procedures.
Global Islamic Bank
Rank 3
on Sustainalytics’ ESG Rating 1 of 39
BSI ranks third globally for Islamic banking based
on Sustainalytics’ ESG Risk rating due to its
ASEAN
consistency in implementing sustainable finance
and ESG strategies. banks
As an institution that adopts sharia principles, ESG participating in the
has been comprehensively integrated with BSI’s Sustainable Banking
business processes that fully support sustainable
growth in all aspects - economic, environmental, Assessment (SUSBA)
and social. Sustainalytics’ ESG Risk Rating report BSI demonstrates its strong commitment to
released in 2023 gave BSI a score of 26.8 in the sustainability by participating in the Sustainable
medium risk category. This score reflects the Banking Assessment (SUSBA) as one of 39
Bank’s commitment to financing micro, small, and participant banks in ASEAN. This participation
medium enterprises (MSMEs) that have a direct not only shows BSI’s commitment to establishing
impact on the community economy. Globally, BSI practices that promote financial and environmental
ranks among the top three Islamic banks based on sustainability, but it also establishes BSI as a
ESG risk assessment. pioneer of sustainable finance efforts in ASEAN
countries.
4 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 7
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 5
Page 8
Introduction Economic Performance Social Performance Environmental Performance
Summary of Sustainability
Performance
Economic Aspect [OJK B.1]
Net Total Total
Profit Customers Financing
Rp
5.70 trillion 19.65 million
Rp
240.3 trillion
Net profit in 2023, up by 33.88% Customers
from the previous year
Sustainable Distribution to Total Domestic
Financing SME Businesses Suppliers
Rp
57.7 trillion
Rp
45.5 trillion 99.43 %
Financing for sustainable business Fund distribution to SME The BSI suppliers are domestic
activities or 24% of total financing businesses suppliers
Environmental Aspect [OJK B.2]
Total electrical Total Fuel Total
energy Consumption Emissions
2,117,285 281,983 1,800,442
Ton CO2-eq
KWh liter Total emissions generated
from electricity and fuel
LED Lighting Total Plastic Total Tree
Used Bottle Waste Planting
22.9 Ton 39,329
100 % The total plastic bottle waste collected
by Collection Point in the collaboration Total tree planting until
LED lighting in all BSI program with PlasticPay helps reduce 2023 in various locations
the carbon footprint by 84.4 ton of
offices CO2-eq
6 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 9
Social Aspect [OJK B.3]
Employee turnover Training Training
rate Hours Cost
3.77 % 1,392,792 Hours
Rp
90.6 billion
Total training hours in 2023, with an average Total training costs incurred by administering
of 78 hours per employee per year. internal training and training held at external
educational institutions.
The Supported Total Total
MSMEs Beneficiaries Distribution
3,009 MSMEs 333 thousand
Rp
222 billion
The supported MSMEs include 3 MSME BSI Maslahat’s total beneficiaries include BSI Company & Employee Zakat Distribution
Centers in 3 provinces comprising Aceh 333,000 individuals and 1,019 institutions to BAZNAS RI
(1,670 MSMEs), Yogyakarta (752 MSMEs),
and Surabaya (587 MSMEs)
Awards
BUMN Corporate Communication Indonesia Best TJSL Awards 2023 Indonesia's Best Corporate
and Sustainability Summit 2023 Best TJSL 2023 with Outstanding Sustainability Initiatives & Warior
(BCOMMS) Program in Developing 2023
Small Medium Enterprises Socioeconomic Community (Sharia Indonesia Best Corporate
Development (Silver Category) Bank Category) Sustainability Warrior 2023
Kementerian BUMN Warta Ekonomi (Corporate Sustainability Top Leader
CSR Excellence Awards 2023 Indonesia Award 2023 Warior)
Best CSR on MSME (UKM) Program Special Recognition of Outstanding MIX MarComm
First Indonesia Initiative atas inisiatif Program Desa Indonesia's Best Corporate
CSR Excellence Awards 2023 BSI (Bangun Sejahtera Indonesia) Sustainability Initiatives & Warior
Best in Empowerment of Human iNews 2023
First Indonesia 13th Institutional Investor Corporate Indonesia Best Corporate
Awards 2023 Sustainability Warrior 2023
CSR Excellence Awards 2023
Best Strategic CSR (Corporate Sustainability Team Warior
Excellence Community Program
Alpha Southeast Asia Category)
Award
MIX MarComm
First Indonesia IDX Channel Anugerah Inovasi
Indonesia (ICAII) 2023 ESG Disclosure Transparency Awards
CSR Excellence Awards 2023
BSI Sustainable Movement 2023
Best Corporate - Community or Non
(Sustainability Category) Management B Category
Profit Partnership Program
IDX Channel Investor Trust
First Indonesia
Katadata Corporate Sustainability BAZNAS UPZ Award 2023
CSR Excellence Awards 2023
Awards (KCSA) UPZ 4-star Best Reports
The Best Leadership Focus on CSR
Environment BAZNAS RI
Program (Mr. Gunawan Arif Hartoyo)
First Indonesia Katadata BAZNAS UPZ Award 2023
Sustainable Development Goals UPZ 5-star Best Distribution
BAZNAS AWARD 2023
(SDG) Award 2023 BAZNAS RI
Best Bank for Zakat Payment Services
BAZNAS RI Islamic Banking TK Category >18,000 BAZNAS UPZ Award 2023
(Best Category) UPZ 5-star Best Collection
CSR AWARD 2023
AMA Indonesia BAZNAS RI
Growing with Purpose (Special Award
Category) Road to CNBC Indonesia Awards CSR IDX Channel Award 2023
B Universe 2023 Economic Development Initiative for
Most Innovative Ziswaf Fundraising Sustainable Economy Program for
TrenAsia CSR Award 2023
in Mobile Banking (Best Sharia Banks Sustainable Indonesia
Sharia Bank Category Sustainability
Category) IDX Channel
trenAsia
CNBC
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 7
Page 10
Introduction Economic Performance Social Performance Environmental Performance
About
Sustainability Report
“In its third Sustainability Report, Bank Syariah
Indonesia underscores the significance of
transparency and integrity as the primary foundation
for attaining sustainability. This serves as a testament
to BSI’s dedication to providing stakeholders with
trustworthy and credible information regarding
the implemented contributions and sustainable
initiatives.”
Annually, PT Bank Syariah Indonesia Tbk (BSI) releases a Sustainability Report concurrently
with the Company’s Annual Report. This report marks the third edition of BSI’s Sustainability
Report, emphasizing the company’s dedication to integrity and transparency for its stakeholders.
[GRI 2-3]
Throughout the report, the terms “BSI,” “Company,” “Bank,” or “We” refer to PT Bank Syariah Indonesia Tbk, and all
financial information presented in this report is denominated in Indonesian Rupiah (IDR).
Report Profile
The 2023 BSI Sustainability Report is prepared in adherence to the criteria specified in Financial
Services Authority Regulation Number 51/POJK.03/2017 on the Implementation of Sustainable
Finance for Financial Services Institutions, Issuers, and Public Companies, along with the Circular
Letter from the Financial Services Authority of the Republic of Indonesia Number 16/SEOJK.04/2021
detailing the Form and Content of Annual Reports for Issuers or Public Companies.
In addition, this sustainability report also uses international sustainability reporting standards, namely
the Global Reporting Initiatives version 2021 (2021 GRI Standard) with reference option. To make the
Report easier for reader to find information in this report and its relevance to each of the standard
criteria used, we include a criteria index at the end of paragraphs/pages discussing relevant topics/
issues. The complete reference index can be found on page 94.
8 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 11
Reporting Principle
BSI referred to the reporting principles of the 2021 GRI Standard in the process of preparing this
report with the objective of ensuring the quality and credibility of the information and data reported.
The reporting principles are:
Accuracy Balance Clarity Comparability
Sustainability Context
Completeness Timeliness Verifiability
Scope and Limitation of The Report
The Sustainability Report of Bank Syariah Indonesia (BSI) provides comprehensive information covering
all activities conducted by PT Bank Syariah Indonesia Tbk, including operations at its headquarters in
Jakarta and all branches across Indonesia. Every piece of information presented in this report results
from activities and endeavors directly associated with BSI. [GRI 2-2]
In this edition of the BSI Sustainability Report, there is no restatement of data from previous reports.
All information provided here is actual and has not undergone any changes from previous reporting.
This underscores the consistency and accuracy in information presentation, ensuring that this report
offers a precise and reliable overview of BSI’s sustainability for the respective time period. [GRI 2-4]
This report documents information that has undergone a rigorous internal verification process in
various Divisions, Departments, or Functions related to sustainability, supported by internal audits.
The reliability of this data and information has been verified by an independent external assurance
party, namely 90, using AA1000 Assurance Standard Type 1 Level Moderate. The assurance statement
from this process can be found at the end of the Report [GRI 2-5].
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 9
Page 12
Introduction Economic Performance Social Performance Environmental Performance
Material Topics [GRI 3-1] [GRI 3-2] [GRI 3-3]
As Indonesia’s largest Islamic bank, BSI is dedicated not only to financial success but also to
sustainability. The ESG approach serves as a vital tool in realizing this commitment. To create a
pertinent and impactful sustainability report, BSI employs a thorough ESG materiality assessment
process, taking into account the following five approaches:
1. Peer Benchmarking:
BSI regularly benchmark its ESG materiality priorities with those of peer Islamic and conventional
financial institutions, both nationally and internationally. This practice allows BSI to align with
industry trends and ensures that its sustainability report meets stakeholder expectations.
2. Regulatory Review:
Adhering to sustainability reporting regulations such as POJK 51/2017 and OJK Circulars
concerning Climate Risk Stress Testing guidelines for Indonesian banks, BSI conducts a thorough
review to ensure its report not only meets minimum requirements but is also relevant to national
policy and reporting frameworks.
3. Utilization of MSCI Materiality Map:
BSI uses the MSCI Materiality Map as a reference to identify ESG topics relevant to the banking
industry. Considering global investor and stakeholder expectations, BSI ensures that its ESG
priorities are not only competitive locally but also recognized internationally.
4. Media Monitoring:
BSI actively monitors media coverage and public discussions related to ESG issues in the financial
sector. This practice helps BSI understand public expectations and identify potential reputation
risks tied to specific ESG issues. Media information also provides valuable input for determining
priorities and sustainability strategies.
5. Strategic Management Direction:
BSI‘s vision, mission, and long-term strategic plans play a role in prioritizing ESG material topics.
The materiality assessment evaluates the impact of ESG issues on the attainment of BSI‘s strategic
objectives, ensuring that sustainability programs are both meaningful and enduring in the long run.
Through this comprehensive approach, BSI ensures its sustainability report accurately reflects the
most relevant and material ESG issues for the bank, stakeholders, and Indonesia as a whole. Periodic
revisions to the materiality assessment are conducted to keep the report adaptive and dynamic,
aligning with evolving regulations, stakeholder expectations, and the global ESG landscape.
With a commitment to transparency and a comprehensive materiality assessment process, BSI
aims to lead in sustainable Islamic banking, actively contributing to the attainment of Sustainable
Development Goals (SDGs) in Indonesia.
Based on this process, BSI formulates the list and prioritization of material topics for the 2023
fiscal year Sustainability Report as follows.
10 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 13
Material topics with Material topics with Material topics with
a very high category: a high category: moderate category:
Economic Performance Anti-Corruption Indirect Economic Impact
Product Portfolio Climate
Occupational Health
Customer Privacy
and Safety
Training and Education Data Security
There have been changes in the materiality priorities of BSI, reflecting a shift in the prioritization of certain topics
driven by stakeholder aspirations, the risks identified, and the bank’s strategic business direction for the future.
Economic Performance & Product Portfolio were the material topics that accorded the utmost priority in 2023. This
is driven by the increasing cybersecurity risk associated with digitalization. In addition, BSI considers the impact of
climate change to be a significant issue, particularly since the OJK issued a circular requiring the banking industry to
conduct climate stress testing.
Reporting Period [GRI 2-3] Suggestions and
Feedback
The reporting period in this Sustainability [GRI 2-3]
Report includes the performance of the
economic, environmental, social and BSI invites all stakeholders to provide
sustainable governance aspects of BSI input towards this Report so that we
from 1 January 2023 to 31 December can improve its quality in the future by
2023. contacting the following information
centers:
Contact Report:
Gunawan Arif Hartoyo
Response from Feedback Senior Vice President
of Previous Sustainability Corporate Secretary &
Communication Group
Reports
[SEOJK G2] [SEOJK G3]
Tel. : +62 21 30405999
Fax. : +62 21 30421888
The feedback received from stakeholders
on the report is very important to BSI. corporate.secretary@bankbsi.co.id
We found that there was an appreciation
for the transparency and openness in Bank Syariah Indonesia
describing our achievements throughout
the year. BSI did not receive any @bankbsi_id @bsihelp
feedback on the content of the previous (Official Customer Care Account)
Sustainability Report.
@Bank Syariah Indonesia
Bank Syariah Indonesia
Call Center : BSI Call 14040
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 11
Page 14
Introduction Economic Performance Social Performance Environmental Performance
Company
Identity
Name of Company [GRI 2-1]
PT Bank Syariah Indonesia Tbk
Head Office Address Date of Operation
[SEOJK C.2][GRI 2-1] 1 February 2021
Gedung The Tower
Jl. Gatot Subroto No.27, Karet Semanggi, Setiabudi,
Jakarta Selatan, 12930, Indonesia
Telepon: 021-30405999
Call Center: BSI Call 14040
Website: www.bankbsi.co.id
e-mail: contactus@bankbsi.co.id
Description of Brands, Products and Services Line of Business
[SEOJK C.4] [GRI 2-6] Sharia-based Commercial Bank
A banking sector that is based on sharia principles
with products for individual customers such as
savings, hajj & umrah, investment, and corporate
customers (such as services, loans, treasury, and
others). BSI also offers digital banking and card
services.
Legal Basis of Establishment [GRI 2-1] Significant Changes [GRI 2-6] [SEOJK C.6]
• State Gazette of the Republic of Indonesia There were no significant changes that
Number 43 – 28 May 1971 – Supplement disrupted the Bank’s business and operations.
Number 242
• Gazette of the Republic of Indonesia Number
85 – 23 October 2009 – Supplement Number
26142
• Gazette of the Republic of Indonesia Number
96 – 1 December 2009 – Supplement Number
27908
12 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 15
“BSI provides access to Sharia financial solutions in
Indonesia, aiming to be a leading bank that delivers
the best value for shareholders, becoming the
preferred company and source of pride for the finest
talents in Indonesia, thereby realizing the vision of
becoming a Top 10 Global Islamic Bank.”
Business License [GRI 2-1] Type of Company [GRI 2-1]
• Decree of the Bank Indonesia Governor Number Public Company (PT)
10/67/KEP.GBI/DpG/2008 of 16 October 2008
• Decree of the Bank Indonesia Governor Number
11/63/KEP.GBI/DpG/2009 of 15 December
2009
Composition of Ownership Ticker Code
[SEOJK C.3] [GRI 2-6] BRIS
Series A Dwiwarna Shares:
Republic of Indonesia 1 share
Series B Dwiwarna Shares:
• PT Bank Mandiri (Persero) Tbk 51.47%
• PT Bank Negara Indonesia (Persero) Tbk 23.24%
• PT Bank Rakyat Indonesia (Persero) Tbk 15.38%
• Other Shareholders (including the Public) 9.91%
Stock Exchange Area of Operation [SEOJK C.3]
The company stock was listed at Indonesia Stock Indonesia and Dubai, United Arab Emirates
Exchange on 9 May 2018
Branch Offices Market Served
[SEOJK C.3][GRI 2-6] [SEOJK C.3][GRI 2-6]
Office network consists of: • All over Indonesia, including corporate
10 Regional Office customers, state-owned enterprises, micro, small,
153 Branches and medium entrepreneurs, education, health,
959 Sub-Branch Office construction, agriculture, and households.
60 KCP Mobile • Dubai, United Arab Emirates, both for retail
96 Functional Offices customers and global investors.
16 Priority Service Counter
734 Pawn Service Counter
2.548 Automatic Teller Machine (ATM)
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 13
Page 16
Introduction Economic Performance Social Performance Environmental Performance
Company
at a Glance
2021
2020
PT Bank Syariah Indonesia Tbk (BSI) officially
The three prominent Islamic banks in Indonesia, commenced its operations. Through the merger
namely PT BRI Syariah Tbk (BRIS), PT Bank Syariah of the three banks on February 1, 2021, BSI now
Mandiri, and PT BNI Syariah, have taken a strategic boasts improved capital capacity and a wider reach,
step by formally signing a Conditional Merger positioning the bank to offer more comprehensive
Agreement (CMA), marking the initial phase of Islamic banking services, and allowing it to
their merger process to become PT Bank Syariah compete globally. Looking ahead, BSI is expected to
Indonesia Tbk. on October 12, 2020. embody a modern and universal Indonesian Islamic
banking institution, aiming to bring positive impact
to the entire universe (Rahmatan Lil ‘Aalamiin).
2022 2023
BSI was able to complete the first rights issue process BSI has officially obtained a full license to
through Pre-emptive Rights. This process was
oversubscribed by 1.4 times and generated additional operate in Dubai, United Arab Emirates.
capital of around Rp5 trillion.
14 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 17
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 15
Page 18
Introduction Economic Performance Social Performance Environmental Performance
Vision
TOP 10
GLOBAL ISLAMIC BANK
Mission Provide access to Sharia Financial Solutions in Indonesia.
Serving >20 million customers and becoming the top 5 bank
based on assets (500+T) and book value of 50 T in 2025.
To be a large bank that provides the best value for
shareholders.
Top 5 most profitable banks in Indonesia (ROE 18%) and
strong valuation (PB>2).
To be the Company of Choice and the Pride of Indonesia’s
Best Talents.
A company with strong values that empower the community
as well as being committed to employee development with
a performance-based culture.
Code The Code of Ethics functions as a framework for professional conduct and collaboration
with both internal and external stakeholders within the Bank. It is derived from the core
principles of Sharia compliance and effective governance, aiming to achieve BSI’s vision
of and mission. It comprises normative rules that are applicable and will provide guidance in
developing policies, procedures, and management practices within the Bank.
Ethics The aspects covered in the Code of Ethics include:
• Conflict of Interest
• Anti Bribery
• Confidentiality
• Abuse of Position
• Insider Behavior
• Integrity and Accuracy of Bank Data
• Integrity of Banking Systems
• Management of Employee Accounts
• Annual Disclosure
• Sanctions for Violations/Non-Compliance
• Supervision of Implementation and Updates
In the 2023 fiscal year, Management did not review BSI’s Vision and Mission because they believed they were still
relevant to the Bank’s development.
16 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 19
VISION & MISSION OF SUSTAINABLE FINANCE
Vision
To become one of the Top 5 Banks in Indonesia based on the Implementation of Sustainable
Finance within 5 years
Mission
1. Providing access to Sustainable Finance in Indonesia through products and services that
meet the needs of customers.
2. Becoming a bank that makes the best contributions to the economy, environment, and
society, aiming to be one of the Top 5 Banks in Indonesia in terms of sustainable financing
ratios and CSR implementation to benefit the wider community.
3. Becoming a company that empowers all employees to have awareness and commitment in
applying sustainable financial principles throughout banking operations.
Sustainability Values
Becoming Indonesia’s Leading Sharia Banking with a World Class Sustainability Agenda.
Building a Culture of Sustainability [SEOJK F.1]
Adapting work culture implementation to the business strategy in addressing the digital era
is a concerted effort to bolster the Bank’s aspiration of becoming a Top 10 global Islamic
bank. BSI harmonizes the articulation of sustainability values with the Vision and Sustainability
Values integrated into BSI Shared Values.
Initiatives for Implementing a Culture of Sustainability
• Integrating values into employee behavior through the internalization of ETHICS & Culture
Theme in collaborative learning materials with the entire Academy and related work units.
• Strengthening a performance culture and stakeholder care through leaders serving as role
models (leading by example).
• Enhancing a learning culture and agility through diverse learning activities (blended
learning) for continuous improvement and innovation.
• Ensuring the company’s healthy growth by increasing risk awareness and efforts to prevent
fraud (fraud prevention) in collaboration with relevant work units.
• Implementing a Change Agent strengthening program in the acceleration of work culture
to enhance engagement and ownership towards the company.
• Developing a sense of care for the community through social movements and volunteer
programs for maximum contribution and blessings.
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 17
Page 20
Introduction Economic Performance Social Performance Environmental Performance
Business
Scale [SEOJK C.3]
Note Unit 2023 2022 2021
Total Assets Rp Billion 353,624 305,727 265,289
Mudharib Incomes Rp Billion 22,251 19,620 17,808
Liabilities Rp Billion 87,222 73,655 61,886
Equity Rp Billion 38,739 33,505 25,014
Number of Employees Person 17,909 18,581 19,449
ATM Network Unit 2,571 2,548 2,618
Distribution and Number of Customer Services and Information [SEOJK C.3]
PRODUCTS & SERVICES
12 67 8 13
Cards Individual Digital Corporate
NEWS & UPDATE
6,399 369 337
Online Media News featured Print Media
News on Social Media News
87 64 255
Customer Info TV Media Sharia
featured on News education
Social Media featured on
social media
18 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 21
Membership
in Associations [SEOJK C.5][GRI 2-28]
BSI actively engages in multiple associations and professional industry organizations. This active involvement serves
as a means to expand perspectives and acquire insights into the evolving landscape of Sharia banking, regulatory
changes, economic conditions, and customer requirements.
Association Forum
Indonesian Sharia Bank Association (Asbisindo) Indonesia Sustainable Finance Initiative (IKBI)
Association of National Banks (Perbanas) Banking Compliance Director Communication Forum (FKDKP)
Indonesian Association of Islamic Economists (IAEI) Financial Services Industry Communication Forum
Sharia Economic Society (MES)
Bank Association for Risk Management (BARa)
Indonesian Bankers Association (IBI)
National Sharia Council (DSN MUI)
Indonesian Banking Dispute Resolution Alternative Institution
(LAPSPI)
Indonesian Payment System Association (ASPI)
Association of Indonesian Mutual Fund Selling Agent Banks
(ABAPERDI)
Indonesian Sharia Fintech Association (AFSI)
Indonesian Issuers Association (AEI)
Financial Services Sector Alternative Dispute Resolution
Institution (LAPS-SJK)
Islamic Financial Services Board (IFSB)
Certification
BSI is committed to conducting banking operations in adherence to quality standards. BSI personnel hold
certifications from independent bodies related to competencies in banking, such as risk management and general
banking. Additional corporate certifications encompass ISO/IEC 27001:2013 for Information Security Management
Systems and ISO 9001:2015 for Quality Management Systems.
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 19
Page 22
Introduction Economic Performance Social Performance Environmental Performance
Supply
Chain [GRI 2-26]
In executing its banking operations, BSI collaborates with supplier partners who serve as providers for various
needs, including office supplies, labor, transportation facilities, planning consultants, infrastructure implementers
and supervisors, as well as other supporting services. In 2023, BSI procured a number of 973, with details as follows:
Procurement of
Procurement of IT
Non-IT Goods and
Goods and Services
Services
449 438
Procurement
of Renovation/ Total Procurement
Relocation
86 973
Regarding domestic suppliers, BSI acknowledges that active involvement with local suppliers positively influences
supporting local economic growth. Engaging with domestic suppliers allows the bank to contribute to economic
development, generate new job opportunities, and decrease reliance on imports. By the conclusion of 2023, BSI
has formed partnerships with 701 domestic suppliers based in Indonesia, encompassing around 99.43% of the total
number of bank suppliers. This collaboration underscores BSI’s dedication to empowering the local economy and
reinforcing positive connections with the community, building trust and garnering support from diverse stakeholders.
Description [GRO 204-1] Amount %
Domestic Suppliers 701 99.43%
Overseas Suppliers 4 0.57%
Total 705 100%
99.43 %
BSI suppliers/vendors are suppliers domiciled
in Indonesia
20 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 23
The responsibility for supplier procurement lies with 6. Fair and Reasonable, Providing equal treatment to
the Procurement & Fixed Asset Group Work Unit and all potential Goods and Services Providers without
is executed in accordance with company policies. BSI favoritism
underscores the significance of partner compliance 7. Accountability, Ensuring that the procurement
with sustainability requirements as a collective effort process, results, and payments can be accounted
to achieve responsible operations. The company has for.
established guidelines and a collaborative system with 8. Responsibility, Conducting the procurement
suppliers, serving as a framework for the procurement process carefully and in compliance with applicable
process, including selection processes and the regulations
application of the following principles: 9. Independence, Making procurement decisions
1. Sharia Principle, Prioritizing compliance with Sharia objectively and free from pressure from any party.
principles in procurement activities.
2. Effectiveness, Ensuring procurement aligns with Supplier Satisfaction Survey
established needs/plans and delivers optimal In order to comprehend perceptions of the procurement
benefits to the Bank. process and its implementation within the company, BSI
3. Efficiency, Conducting the procurement process to conducted a supplier satisfaction survey in December
achieve quality according to established standards, 2023. A total of 12 suppliers participated in the survey,
within agreed timelines, and at the best price utilizing the Likert scale assessment method as an
4. Competitive/Open and Competitive, Maintaining an evaluative approach. The detailed assessment criteria
open procurement process for Goods and Services are as follows:
Providers who meet requirements, promoting
healthy competition based on transparent rules and
Likert Scale Value Category
procedures.
5. Transparency, Ensuring openness in all provisions < 1.00 Unsatisfactory
and information related to procurement, including 1.01 - 2.00 Less Satisfactory
technical and administrative requirements, 2.01 - 3.00 Quite Satisfactory
evaluation procedures, evaluation results, and the
3.01 - 4.00 Satisfactory
selection of Goods and Services Providers.
4.01 - > 5 Very Satisfactory
Based on the predefined scale criteria, the satisfaction survey score for the 2023 procurement process reached a
value of 4.6. This accomplishment signifies that the satisfaction level of the Bank’s collaborating partners with the
procurement process falls within the “Very Satisfactory” category.
Assessment Indicators Score Criteria
Supplier Selection Mechanism 5 Very Satisfactory
Execution of Procurement Process Stages 4 Satisfactory
Completion Process for Payment of Work 4.5 Very Satisfactory
Others : 5 Very Satisfactory
1. The Procurement & Fixed Asset Group (PFA) has acted fairly (without favoring any
vendor) in the procurement of goods and services.
2. PFA’s service in providing overall office facilities (waiting area, meeting rooms,
information counters, cleanliness, prayer room, toilets, etc.).
3. Security and overall services in the PFA environment.
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 21
Page 24
Introduction Economic Performance Social Performance Environmental Performance
President Director’s
Speech [SEOJK D1] [GRI 2-22]
“For BSI, every step taken today to preserve
the natural and socio-economic balance is an
investment for the future.”
Assalamualaikum warahmatullahi Therefore, for BSI, every step taken today to preserve
wabarakatuh the natural and socio-economic balance is an
investment in the future. To this end, BSI always strives
Dear distinguished stakeholders, colleagues, BSI to ensure not only to comply with Sharia principles in all
customers and all BSI people throughout Indonesia; on its financial transactions, but also to actively contribute
behalf of the entire Board of Directors and management, to environmental protection efforts and the responsible
I am pleased to present the Sustainability Report of PT management of natural resources. We see this as a
Bank Syariah Indonesia Tbk (BSI) for the financial year fundamental responsibility, in line with Islamic values
2023. that emphasize the importance of maintaining balance
and harmony in creating prosperity for all.
This report is not only a reflection of BSI’s efforts
throughout 2023 to achieve operational and financial BSI Performance in 2023
set targets, but also a testament to BSI’s unwavering By 2023, BSI had made significant progress in terms
commitment to integrate sustainability practices into its of key performance indicators that reflect business
operations & business activities to serve customers and excellence and compliance with Islamic banking
the Ummah, in accordance with Maqashid Syariah. principles. BSI’s financial performance is increasingly
solid with Net Profit in 2023 reaching Rp5.7 trillion,
For BSI, sustainability is in sync with Maqashid growing by 33.88% YoY. This reflects BSI’s effectiveness
Syariah, which is the foundation of Islamic banks’ in generating profits and added value for stakeholders.
objectives, namely to uphold the welfare of humanity,
which includes aspects of justice, health, security BSI’s asset quality was also maintained with a low Net
and prosperity, and to maintain balance and harmony Non-Performing Financing (NPF) ratio of 0.55%. This
between human and nature. NPF achievement reflects prudence in risk management
and financing.
22 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 25
Hery Gunardi President Director 2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 23
Page 26
Introduction Economic Performance Social Performance Environmental Performance
President Director’s
Speech
The ratio of operating costs to operating income (BOPO) 1. Construction of BSI Green Building Office with the
in 2023 of 71.27% indicates improved efficiency and use of solar panel energy;
shows better cost management in line with the increase 2. Use of Electric Vehicles for Company operations;
in the Company’s revenues. In terms of liquidity, BSI 3. Digital-based Plastic Waste Management;
managed to maintain overall healthy ratio in 2023, 4. Digital Correspondence.
ensuring readiness to fulfil the Company’s financial
obligations. Internally, the Company continues to focus on
building the capacity and competence of all BSI
The growth of BSI’s assets and financing shows that people in sustainable finance and banking. As many as
the Bank continues to expand sustainably, along with 14,268 employees or 77% of all BSI employees have
the growth of BSI’s customer base, which has reached participated in comprehensive training programs. BSI
19.65 million customers across Indonesia by the end of ensures that every team member understands how
2023. ESG (Environmental, Social and Governance) principles
are integrated into daily operations. This internal
BSI Moves Forward with Sustainable Action strengthening effort is an important step in BSI’s
The year 2023 has been a year of significant progress journey, emphasizing our awareness that commitment
and achievement in the integration of sustainable to sustainability must start with ourselves.
finance and banking principles at BSI. We have made
great strides in expanding sustainable financing In the aspect of sustainability governance, this year BSI
initiatives, supporting projects that contribute to recorded a number of achievements, in particular related
environmental protection, clean energy, promoting the to the process of integrating ESG with BSI’s governance
growth of MSMEs in Indonesia through BSI financing, and corporate culture. This includes the strengthening
sustainable community development through various of a number of internal policies, including the initial
community social programs and ZISWAF distribution, stage for the preparation of Climate Risk Stress Testing
as well as CSR activities through BSI Maslahat National (CRST) in accordance with the Financial Services
Amil Zakat Institution (LAZNAS), which reached Rp255 Authority guidelines, the preparation of ESG Roadmap,
billion this year, an increase of 35.6% year-on-year. ESG Framework & ESG Governance Structure as well as
the review of BSI’s ESG Risk Rating.
By the end of 2023, the total BSI financing that is
aligned with the Sustainable Business Activity Category Advancing as “Beyond Sharia Banking”
(KKUB) contained in POJK No. 51/POJK.03/2017 has BSI is aware that its central role as an Islamic financial
reached Rp57.7 trillion, or 24.07% of the entire BSI services institution is to drive a sustainable Islamic
financing portfolio in 2023. economy. Not only is BSI committed to sustainability, but
it can also exceed all other stakeholders’ expectations.
Furthermore, with regard to environmental aspects, BSI will progress to become a sustainable Islamic Bank
BSI continues to strengthen the implementation of that provides extensive benefits to the community &
sustainable initiatives with various Green Lifestyle environment.
and Green Operations campaigns for employees and
customers. Some of BSI’s initiatives in 2023 include:
24 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 27
BSI actively contributes to Indonesia’s National For all BSI people across Indonesia, without your trust,
Determined Contribution (NDC) and the Paris dedication, commitment and hard work, BSI’s success
Agreement towards a Low Carbon Economy through to date would not be possible.
financing and operational activities, as well as all CSR
activities that have a positive impact on the environment We are all part of BSI’s and Indonesia’s sustainability
and carbon emission reduction. journey. Through synergy and collaboration, let’s create
a bright future of sustainable action.
Appreciation & Closing Remark
At the end of these remarks, we would like to express our
sincere gratitude to all BSI stakeholders, management
and people for their tremendous support and
contribution throughout BSI’s presence in Indonesia.
We are grateful for every collaboration that has been
established.
Wassalaamualaikum Warahmatullahi Wabarakatuh
PT Bank Syariah Indonesia Tbk.
Hery Gunardi
President Director
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 25
Page 28
Pendahuluan Kinerja Ekonomi Kinerja Sosial Kinerja Lingkungan
Statement of the Board of
Commissioners and Board of Directors
on the Responsibility
for the Sustainability Report of PT Bank
Syariah Indonesia Tbk in 2023 [SEOJK E.1][GRI 2-14]
We hereby declare that the Sustainability Report of PT Bank Syariah Indonesia Tbk for the fiscal year 2023 has been
prepared with reference to the Financial Services Authority Regulation number 51/POJK.03/2017 concerning the
Implementation of Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies, and the
Financial Services Authority Circular Letter number 16/SEOJK.04/2021 concerning the form and content of the
Annual Report of Issuers or Public Companies.
All information in this Report has been included in full in accordance with these regulations, and we accept full
responsibility for the accuracy of the contents of the Company’s Sustainability Report.
Jakarta, April 24, 2024
On behalf of the Board of Commissioners and the Board of Directors
Muliaman D. Hadad Hery Gunardi
President Commissioner (Independent) President Director
PT BANK SYARIAH INDONESIA Tbk LAPORAN KEBERLANJUTAN 2023
Page 29
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 27
Page 30
Introduction Economic Performance Social Performance Environmental Performance
SUSTAINABILITY
01 GOVERNANCE
28 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 31
“BSI’s commitment to consistently improve
Good Corporate Governance (GCG) practices is
a proactive endeavor to reach the objectives of
sustainability strategy and achieve measurable
excellence in the implementation of Sustainable
Finance.”
BASIS OF GOVERNANCE STRUCTURE for Financial Conglomerates, as well as other relevant
As part of the Islamic banking industry, BSI acknowledges regulations. The Governance Policy has been approved
that the implementation of GCG principles enables the by the Board of Commissioners on the approval sheet
establishment of a robust banking system while ensuring Letter No. 01/001/-3/DIRPPG dated 1 February
compliance with relevant regulations. Consequently, 2021 and the Board of Commissioners’ decision letter
BSI consistently upholds its commitment to applying regarding the pillars of risk management policies and
the principles of Good Corporate Governance (GCG) internal, business, operational, and control systems. All
within the Bank’s environment. of these policies become a reference for all work units
in implementing the principles of transparency and
BSI implements good corporate governance by accountability.
referring to Bank Indonesia Regulation No. 11/33/
PBI/2009 concerning Implementation of Good To enhance Corporate Governance, BSI will formulate
Corporate Governance (GCG) for Sharia Commercial internal regulations for reporting the Indonesian
Banks (BUS) and Sharia Business Units (UUS), Financial Green Taxonomy, in anticipation of the issuance of
Services Authority Regulation No. 18/POJK.03/2014 Green Taxonomy regulations. The implementation
concerning Implementation of Integrated Governance of the Indonesian Green Taxonomy is in line with the
Sustainable Finance Roadmap Phase II (2021-2025).
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 29
Page 32
Introduction Economic Performance Social Performance Environmental Performance
Sustainability
Governance
CORPORATE GOVERNANCE STRUCTURE [GRI 2-9] [GRI 2-11]
The determination of the corporate governance structure at BSI refers to Law Number 40 of 2007 concerning Limited
Liability Companies and Bank Indonesia Regulation Number 11/33/PBI/2009 concerning the Implementation of
Good Corporate Governance for Sharia Commercial Banks and Sharia Business Units.
Board of Commissioners
President Director
Sharia Supervisory
Audit Committee
Board
SEVP
Internal Audit
Internal Audit Internal Audit Audit Policy &
Group 1 Group 2 Counterpart
Group
Wholesale &
Retail Banking Audit Policy &
Transaction Investigation Audit
Audit Development
Banking Audit
Distribution,
Finance Strategy Counterpart &
Strategy &
& Treasury Audit Audit Support
Funding Audit
Digital
Risk Compliance MIS & Data
Transactional
& HC Audit Analytic
Banking Audit
IT Operations
Quality
Infrastructure &
Assurance
Security Audit
IT Strategy,
Governance &
Development
Audit
The main organs of the Company include the General Composition of Corporate Governance
Meeting of Shareholders (RUPS), the Board of Based on Position
Commissioners, the Sharia Supervisory Board, and the
Position Total (Person)
Board of Directors. Meanwhile, supporting organs of
the Company are formed through committees under Board of Commissioners 9
the coordination of the Board of Commissioners and Board of Directors 10
committees under the coordination of the Board of (Executive)
Directors. In detail, the main organs of BSI in 2023 are
outlined in the following table.
30 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 33
Board of Commissioner Composition DUTIES AND RESPONSIBILITIES [SEOJK E1]
[GRI 2-14]
Position Total (Person)
The Board of Commissioners, the Sharia Supervisory
Non-Independent 5 Board, and the Board of Directors, as well as the
Independent 4 supporting organs consisting of committees under the
Board of Commissioners and the Board of Directors,
are collectively responsible for the implementation
Composition of Corporate Governance of Sustainable Governance by taking into account
Based on Term of Office * [GRI 405-1] economic, environmental, and social performance
achievements. To compile, coordinate, direct, and
Term of Office Total (Person)
supervise the Sustainable Finance Action Plan (RAKB),
1 – 3 years 19 the Bank forms a Sustainable Finance Team (SF), which
* The Board of Commissioners and the Board of Directors as of is under the Corporate Secretary function and under the
December 2023
coordination of the Director of Compliance & Human
Capital. [GRI 2-12][GRI 2-13]
Composition of Corporate Governance
Based on Gender* The implementation of RAKB is supported by several
relevant work units, including Corporate Business
Gender Total (Person)
Group (CB1 & CB2), Commercial Business Group (CMG),
Male 18 SME Business Group (SMG), Micro Business Group
Female 1 (MBG), Procurement Group (PRG), and BSI Corporate
* The Board of Commissioners and the Board of Directors University (BSU). The results of RAKB implementation
are submitted by the Corporate Secretariat to the Board
of Directors, who then convey the results back to the
SUSTAINABILITY GOVERNANCE Board of Commissioners for direction. The Bank then
STRUCTURE [SEOJK E1] monitors and evaluates the implementation of RAKB
In carrying out sustainable finance, BSI has a priorities on a quarterly basis and reports them to the
sustainability governance structure that is part of the Director of Supervision, Corporate Secretary and the
Bank’s Corporate Secretary & Communication Group Audit Committee, if necessary.
structure. The establishment of this structure is based
on Directors Decree No. 01/309-KEP/DIR dated 27 BSI reports its sustainability performance to shareholders
October 2021 concerning the Organizational Structure at the General Meeting of Shareholders (GMS). BSI
of the Corporate Secretary & Communication Group of invites all shareholders to express their opinions
PT Bank Syariah Indonesia Tbk. regarding Environment, Social, and Governance (ESG)
issues. However, we have not yet granted voting rights
to shareholders regarding discussions on environmental
Corporate Secretary & Communication or social issues. As a public company, BSI intends
to provide value to shareholders by participating
Secretary
in the Sustainable Banking Assessment (SUSBA),
Sustainable Finance which consists of 11 banks in each country, as well
as presenting the Sustainable Financial Performance
Report in the Quarterly Financial Report Publication
and/or Public Expose.
Sustainable Strategy & Planning
Sustainable Program Implementation &
Monitoring
Staff
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 31
Page 34
Introduction Economic Performance Social Performance Environmental Performance
Sustainability
Governance
SUSTAINABILITY COMPETENCE DEVELOPMENT [SEOJK E2][GRI 2-17]
Throughout 2023, BSI has executed training and competency development programs for its employees to enhance
their knowledge and skills in the field of sustainability. This initiative ensures that employees not only comprehend
the latest developments and issues related to sustainability but are also capable of assuming responsibility in this
area. Consequently, the Bank consistently conducts training and competency development programs for employees
under the purview of BSI Corporate University.
The Bank has also facilitated insights into sustainable finance for the Directors and Board of Commissioners through
various means such as webinars, self-awareness sessions, and digital learning. Additionally, to boost employee
productivity and enhance networks, BSI will continue its efforts in restructuring office networks and transforming
outlets by categorizing them into 3 distribution channels: branch network, digital, and BSI Smart Agent. BSI is also
planning to shift branch transactions, or teller services and customer service, towards electronic and digital channels,
accompanied by redeployment and reskilling the employees.
Throughout 2023, a considerable number of 14,268 BSI employees have undergone education and training on
Sustainable Finance topics. This comprehensive training encompasses an understanding of the impact of financing
on climate change, green taxonomy, and renewable energy.
Bank Syariah Indonesia has been certified
14,268 BSI employees
BSI employees have joined competency development on Sustainable Finance up
to end of 2023.
MANAGING ENVIRONMENTAL AND SOCIAL RISK [SEOJK E3]
Risk management aims to minimize the potential negative impacts arising from the operational activities of the Bank,
including the impacts resulting from climate change. In line with its role, risk management also considers the risk
impacts of each financing, including risks related to Environmental, Social & Governance Aspects.
BSI’s risk management unit is comprehensive in overseeing all its business activities. The management process is
systematically and effectively regulated, providing opportunities for continuous feedback. To reduce risks related to
Environmental and Social Aspects, BSI has started mapping its financing portfolio by paying attention to businesses
with high risks. The management of Environmental and Social Risk Management is outlined in the Portfolio Guideline
Financing Business Procedure Standard, broadly covering 4 directions related to the provision of financing.
32 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 35
Prohibition of providing financing that violates the basic principles of Sharia, in the form of:
a. The principle of justice and balance (‘adl wa tawazun)
b. Benefit (maslahah)
c. Universalism (alamiyah)
d. Contains objects of maysir (speculation), gharar (unclear), haram, usura, risywah (gratification), bathil (unfair), and dzalim.
Prohibition of financing that has the potential to damage the environment
Mandatory AMDAL and PROPER for certain types of businesses. The Bank does not provide financing to companies that
receive red and black PROPER ratings. BSI also ensures the following four things in consideration of providing financing:
a. There is no pollution in the production process
b. There is no waste pollution and there is waste treatment in accordance with regulations
c. There are no complaints from residents/community in the surrounding areas where the business is located.
d. Compliance with all applicable government rules and regulations.
There is a requirement for Industry Acceptance Criteria (IAC) for the palm oil industry that has Indonesian Sustainable Palm Oil
(ISPO) and/or Roundtable for Sustainable Palm Oil (RSPO) certification
In order to have a financing portfolio in accordance with Sustainable Development Goals (SDGs) and Maqashid
Sharia, the Company has developed the entire financing process (end-to-end process). This process encompasses
planning, acquisition, monitoring, as well as collection and recovery, catering to both wholesale and retail customers.
The objective is to ensure the effectiveness of managing and mitigating Environmental and Social Risks within the
Company’s operational environment.
01 03
Financing Planning Maintenance & Intensive Monitoring
a. Determine risk corridors that take into a. Monitoring portfolio mix
account the focus of the industry sector, b. Account Mapping and Risk Classifications
target customers and client tiering. c. Annual review
b. Determine the management threshold and d. Watchlist alert
pipeline management e. Evaluation of Financing Risk Rating Results
c. Carry out wholesale ratings f. Evaluation of Allowance for Impairment
Losses
g. Monitoring the fulfillment of the covenant
h. Monitoring second way out
WHOLESALE
02 04
Acquisition Process Optimal Collection & Recovery
a. Comprehensive analysis process. a. Restructurization
b. Decision process with Four Eye Principle. b. Customer Mapping according to quadrants
c. Understanding and mastery of business and establishing strategies and action plans
processes. c. Infrastructure preparation and collection &
d. Risk mitigation through terms & conditions recovery system
and covenants d. Monitoring Non Performing Financing and
Write-Offs
e. Booster Program
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 33
Page 36
Introduction Economic Performance Social Performance Environmental Performance
Sustainability
Governance
Maintenance & Intensive Monitoring
Financing Planning
a. Monitoring portfolio and quality through
a. Focus on specific sectors for SMEs
RTTA Report, PQR, CCA, Product Program,
b. Focus on segmented and targeted customers
Monitoring, and Stop&Go
c. RAC (Risk Acceptance Criteria) designation
b. Watchlist review and annual review
and product features
c. Maintenance scoring system
d. Product Program
d. Monitoring post transaction, covenant, second
e. Credit Scoring model
01 03 way out, committed to payroll, PKS Non Payroll,
result monitoring call/monitoring call result
e. Review quality leading indicator: PPD, EPD, DG,
dan reason
RETAIL
Acquisition Process Optimal Collection & Recovery
a. Ensuring acquisitions according to target 02 04 a. Restructurization
market, product features, and RAC b. Mobile collection
b. Implementation of four eyes principle c. Enhancement of Collection System
c. Verification process that covers income, d. Monitoring of NPF and WO
document and customers e. Program booster collection & recovery
d. Scoring Model Implementation f. Claim & Subrogation Monitoring System
BSI takes a comprehensive approach to managing Audit Committee
various risks, including those related to the environment, The Bank has an Audit Committee to support the
society, capital adequacy, and strategic plans for future implementation of the duties and responsibilities of the
business development. This ensures that the Bank’s Board of Commissioners
operations and financing activities are conducted to run effectively. The establishment of the Audit
in line with its risk appetite. The Board of Directors Committee refers to Bank Indonesia Regulation (PBI)
carefully assesses and oversees the Bank’s capital and No. 11/33/PBI/2009. This committee performs the
debt structure to ensure it aligns with its strategic oversight functions of financial information, internal
goals and risk appetite. This evaluation encompasses control systems, the effectiveness of audit activities,
an assessment of the Bank’s funding, investment, risk management, compliance, and other tasks, including
and capital allocation policies to ensure its ability to overseeing the implementation of sustainable finance.
navigate dynamic markets conditions and fulfill its
financial obligations to customers and stakeholders in Sharia Supervisory Board
the long run. The continuity of the sharia banking business is
supervised by the Sharia Supervisory Board, which plays
AUDIT AND SUPERVISION a role in analyzing the reports of the Board of Directors,
The Bank has an Internal Audit Work Unit (SKAI) which as well as reports required or requested by the Board
carries out internal audit functions, namely general of Directors. The Sharia Supervisory Board also carries
audit and investigation activities. This activity aims to out an internal audit function and/or compliance
ensure that all Bank business activities are carried out function to determine the quality of compliance with
in accordance with the sharia principles and applicable sharia principles in Bank activities, including aspects of
laws and regulations issued by the government, banking sustainable finance.
regulators, bank supervisory authorities, as well as
internal policies, provisions and procedures established Internal audit
by the Bank. In implementing sustainable finance, Internal Audit
conducts annual checks on financing customers who
are included in business sectors that have a potential
34 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 37
impact on the environment. The annual inspection and the Company’s Major Shareholders will prioritize
is carried out periodically. The implementation of the the interests of the Company and are not allowed to
audit refers to the Bank’s Risk Management Policy take actions that prioritize personal economic interests
and internal regulations related to the internal control that may harm and/or reduce the Company’s profits.
system.
BSI also implements several measures as a preventive
PROBLEMS OF IMPLEMENTING effort against conflicts of interest, such as requiring
SUSTAINABLE FINANCE [SEOJK E5] the Bank’s personnel to avoid activities that may
The implementation of sustainable finance has many create conflicts of interest and promoting honorable
challenges. BSI has a number of challenges it must deal and responsible actions free from influences that may
with, including: compromise objectivity in task implementation or result
1) limitations on non-MSME’s environmentally sound in the Bank losing business and/or reputation. They are
business activity projects (KUBL) that can be prohibited from misusing the corporate identity of the
financed by banks, Bank outside the Bank’s interests and with the Bank’s
2) higher risk of non-MSME’s environmental-friendly consent.
projects,
3) difficulty in finding insurance companies that want Prohibition of Risywah (Bribery) [GRI 205-1] [GRI
to work together to become financing guarantors in 205-2]
environmental-friendly project of non-MSMEs, to As part of its commitment to achieve Company
the lack of awareness of the importance of climate performance in accordance with expectations, the Bank
change issues for customers and debtors. enforces an Anti-Bribery Policy among its personnel,
prohibiting them from giving or receiving bribes from
As a means of solution, the Bank also made several customers.
efforts in facing these challenges, such as:
1) Synchronize of RAKB with the Corporate Plan and In support of this, the Bank has guidelines for
the Bank’s Business Plan (RBB), implementing an anti-bribery management system that
2) Develop Strategic Initiatives on Sustainability, Gap helps identify, prevent, and reduce the risks associated
Analysis, proposed Action Plan, and set time line for with bribery practices. These guidelines represent BSI’s
implementation of prioritised action plan. commitment to implementing an anti-bribery policy
3) Benchmarking with national and global industries that has been certified to the international standard ISO
regarding the implementation of Sustainable 37001:2016 for the Anti-Bribery Management System
Finance, (ABMS). This system assists the Bank in enhancing
4) Adding Social and Environmental Risks to policies preventive measures and controls against the risk of
and/or Bank Financing Analysis bribery that may occur in the Company’s operations,
5) The Bank publishes Sustainable Finance activities including the strict implementation of bribery controls,
more massively, both internally and externally, ethics training, and continuous risk assessment.
through print, online, and digital media.
Additionally, BSI strengthens the implementation of ISO
Prevention of Conflict of Interest 37001 with ISO 37301 on anti-money laundering. This
In carrying out duties and responsibilities, conflicts demonstrates the Bank’s compliance with the standards
of interest often arise beyond official duties, set by applicable laws and regulations. Consequently,
involving personal, family, or other interests that may it is expected to enhance trust and reputation in the
compromise the objectivity of a bank’s personnel. eyes of customers and the public, as well as strengthen
Therefore, in decision-making, members of the Board integrity and credibility in the eyes of stakeholders.
of Commissioners, members of the Board of Directors,
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 35
Page 38
Introduction Economic Performance Social Performance Environmental Performance
Sustainability
Governance
A detailed description of the communication, monitoring and reporting mechanisms related to the prohibition of
risywah can be found in the discussion in the Bank’s Annual Report.
The Bank Syariah Indonesia has successfully attained certification
ISO 37001:2016
The certification relates to an anti-bribery management system in the field of goods/services procurement and
vendor management which aims at identifying, detecting and preventing bribery.
Prohibition of Insiders Behavior
To prevent Insider Trading, members of the Bank with access to confidential information are forbidden from
exploiting such information for personal gain or for the benefit of others, which could result in losses for the Bank.
Consequently, all transactions must be carried out transparently, and any policies should be openly communicated
to relevant stakeholders.
Banking System Integrity
To uphold the integrity of the banking system, it is imperative for all Bank personnel to ensure that they are not
manipulated for criminal or illegal activities. They are obligated to steer clear of any involvement in money laundering,
narcotics, or terrorism. These collective efforts serve as self-preventive measures to avoid participation in activities
that could undermine or diminish the integrity of the banking system in Indonesia.
STAKEHOLDER ENGAGEMENT [SEOJK E4][GRI 2-29]
The engagement of stakeholders is an indispensable component for the ongoing success of the company’s business.
Recognizing that stakeholder involvement can yield sustained benefits for society, the Bank categorizes stakeholders
based on their proximity and influence on business continuity. Additionally, the Bank actively includes stakeholders
in policy formulation and program implementation, aligning them with on-the-ground issues and the unique
requirements of each stakeholder. Feedback from these stakeholders is then considered in shaping material topics.
Stakeholder Identification
Approach Key Topics
Group Basis
Shareholders Responsibility, 1. General Meeting of Shareholders 1. Strengthening financial performance and
and Influence (GMS) once a year sustainability
Investors 2. Extraordinary General Meeting of 2. Organizing GMS and EGMS
Shareholders (EGMS), as needed 3. Prepare and present reports
3. Publication of financial statements 4. Distribution of dividends
every quarter 5. Publication and disclosure of information
4. Annual Report, every year 6. Investor meetings organized by the investor
5. Sustainability report, every year relations unit
36 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 39
Stakeholder Identification
Approach Key Topics
Group Basis
Employee Dependency 1. Internal communication tools 1. Conducive industrial relations
such as email and internal memos. 2. Fulfillment of workers’ rights in accordance
Implementation as needed. with the provisions
2. Self-development according to 3. Equality in self-development, training,
training schedule careers.
3. Occupational health, security and 4. Work facilities with attention to security,
safety health, and safety.
4. Employee activities such as sports
and hobbies. Frequency on a regular
basis.
Government Influence 1. Compliance report, at least once a 1. Compliance with regulations
and Regulators year 2. Prepare and submit RBB and RAKB
2. Submit the Bank Business Plan (RBB) 3. Prepare and submit reports according to
and RBB Realization Report to the regulations
Financial Services Authority (OJK). 4. Establish communication with government
3. Submit Sustainable Finance Action and regulators
Plan to OJK. 5. Comply with applicable laws
4. Submit reports in accordance with 6. Implementation of anti-corruption policy
applicable regulations. Frequency in
accordance with regulations
5. Cooperation in organizing events as
needed
Customer Dependency 1. Islamic banking transaction activities 1. Provide product and service information
at the Bank’s office or network 2. Provision of means of resolving obstacles /
2. Contact center, either by telephone or complaints (24-hour contact center)
other means. Frequency every time. 3. Development of safe, convenient, and
3. Easy, safe and reliable banking reliable banking networks, products, and
products and services services
4. Implementation of anti-corruption and anti-
fraud policies
5. Implementation of customer data security
policies
6. Carrying out customer satisfaction surveys
Local Partners/ Dependency 1. Procurement contract for goods and 1. Fair and transparent procurement process
Suppliers services mechanism.
2. Transparent assessment of partners 2. No fees and conflicts of interest in the
3. Signing of integrity pact procurement process.
3. Implement an anti-bribery management
system.
Similar Industry Influence 1. Information on the development, 1. Ease of updating industry developments
opportunities and challenges of the through membership of industry and
Islamic banking industry professional associations
2. Information on regulations related 2. Cooperation in improving capabilities and
to the industry, especially Islamic competitiveness
banking 3. Support the development of a healthy
3. Periodic meetings with banking and business competition climate
Islamic banking industry associations,
as well as professional associations
Community Influence, 1. Development of Social and 1. Fostering harmonious relationships with the
and Responsibility Environmental Responsibility (CSR) community
Environment program according to plan. 2. Development and implementation of
2. Support in welfare improvement TJSL programs to support community
programs empowerment.
3. Ease of access to banking services 3. Preserving the environment
4. Cooperation with ZIS channeling 4. Providing employment opportunities to the
partners in TJSL activities every year. community in accordance with the needs and
provisions of the Bank
5. Implementing financial literacy programs
6. Increase KKUB financing
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 37
Page 40
Introduction Economic Performance Social Performance Environmental Performance
Sustainability
Governance
As can be seen from the chart below, BSI’s action plan related to stakeholders’ expectations has been categorized
according to ISO 26000 - Social Responsibility Guidelines:
Core Subject ISO BSI’s Response and Action Plan
26000 Social
Responsibility For Internal Stakeholders * For External Stakeholders **
Guideline
1 Human Rights Ensuring employee basic needs and rights in the Avoid discriminatory practices against
workplace. customers.
Providing E-care services for communication facilities Provide Call Center services for
related to employment communication with customers
2 Labor & OHS Gender equality Customers feel safe when transacting at the
BSI Service Office
Employee training
Employee remuneration above the minimum wage
standard applicable in the Bank’s operational areas.
Medical facilities for employees
The Bank always strives to minimize the risk of
accidents and occupational health.
3 Fair Operating Prohibition of conflict of interest BSI is certified with ISO 37001 on Anti-
Practices Bribery Management System in goods/
Prohibition of rywah (bribery) services procurement and vendor
management.
Prohibition of insider trading
Prevention of corruption
4 Corporate CSR management by the Sustainable Finance Fulfillment of RAKB and Sustainability
Governance Department within SO Corporate Secretary. Report documents to the Financial Services
Authority.
Financing policy
BSI‘s Zakat distribution partners, BAZNAZ,
SPO Corporate Planning, Bank Business Plan (RBB), BSI Maslahat, Rumah Zakat
and Sustainable Finance Action Plan (RAKB).
Establishment of UPZ BAZNAS BSI
5 Consumer Issues Customer deposit protection guarantee policy Customer complaint service through 24/7
contact center service, either through BSI
Improvement of customer service quality Call 14040, or through BSI social media and
chatbot.
Internalization of customer data confidentiality
commitment within the Bank’s organization.
6 Environment Implementing an environmentally friendly culture BSI’s collaboration with Plasticpay to provide
through the Green Campaign program and energy Reverse Vending Machine to encourage
efficiency in the Bank’s work environment. people to actively sort and recycle plastic
bottle waste.
Disbursement of Environmental Business Activity
Category (KKUB) financing based on POJK 51 Year CSR program in the field of environment
2017.
7 Community BSI distributes Corporate Zakat Funds and employee Distribution of PEN, KUR and MSMEs.
Empowerment payroll through UPZ BSI to be channeled to BAZNAS
and BSI Maslahat and optimized for community Implementing CSR programs in the social
empowerment programs. sector together with LAZ BSI partners.
Notes:
* Internal stakeholders include employees, shareholders, investors, bank management.
** External stakeholders include customers, regulators, government, partners and suppliers, environment, community.
38 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 41
Whistleblowing System Management [GRI Furthermore, the Bank conducts awareness campaigns
2-16] regarding the WBS reporting system and anti-
The Whistleblowing System (WBS) Reporting Guidelines gratification efforts, reaching all employees through
serve as an internal control mechanism designed to desktop computers, the Bank’s website, training
ensure transparency and integrity among employees sessions, sharing sessions, Taujih Pekanan (internal
and throughout the hierarchy of BSI. The WBS acts religious advice), as well as notifications to customers,
as a secure platform for reporting witnesses to share Bank partners, and the general public. A comprehensive
information about potential violations occurring within discussion of the WBS can be found in the BSI Annual
the Bank. Report.
BSI has a policy regarding the whistleblowing system Complaints about the Whistleblowing system as of
which regulates reporting violations, we ensure that December 31, 2023 were a total of 577 complaints with
any employee who reports such activity in good faith the composition of the complaints as follows:
is protected from retaliation, discrimination, or other
Types of Complaints Number of Complaints
forms of workplace intimidation. Any reporting is
strictly confidential, and all reports will be thoroughly Financing 48
investigated while respecting the privacy and rights of Operational 521
all parties involved. We are committed to maintaining a Code of Conduct 8
transparent and ethical work environment in which all
Total 577
employees feel safe to express their concerns without
fear of intimidation.
From all the gathered complaints, the Bank will examine and conduct an analysis before taking further action. During
the year 2023, the Bank conducted an examination of WBS complaints with the following details:
Status
Types of Complaints Currently Being Not Deemed Worthy
Already Addressed Not yet Addressed
Addressed of Action
577 6 8 1 562
More detailed information regarding GCG implementation in the Company can be found in the Company’s Annual
Report, including:
- Nomination and selection process for the Company’s Board of Commissioners and Board of Directors
- The process of remuneration for the Board of Commissioners and Board of Directors of the Company
- Risk management, including policies, implementation
[GRI 2-9] [GRI 2-10] [GRI 2-19] [GRI 2-20] [GRI 2-21]
Anti-Fraud Policy
BSI has committed to ensuring the continuity of integrity and transparency in all aspects of its operations. In line
with this commitment, the company has adopted a comprehensive anti-fraud policy, which covers stages including:
prevention, detection, investigation, reporting, and sanctioning, as well as monitoring, evaluation, and follow-up.
This policy is designed to identify, prevent and follow up on any form of fraud that may occur within the company.
Detailed information regarding this policy, including procedures, responsibilities, and reporting processes, is available
for all parties to access through the company’s official website.
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 39
Page 42
Introduction Economic Performance Social Performance Environmental Performance
ECONOMIC
02 PERFORMANCE
40 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 43
“BSI is present as a catalyst for the development
of Sharia Economics in Indonesia, which can
contribute to the national economy as well as
provide broad benefits for the people.”
As the largest sharia bank in Indonesia and one of the In its efforts to achieve economic performance targets,
Top 10 Global Islamic Banks, BSI continues to optimize the Bank always complies with all banking regulations.
its sustainable economic performance within the Islamic The various sharia banking products and services that
financial ecosystem. The Bank consistently accelerates we provide are in compliance with applicable Standard
and innovates in such a way that it becomes a financial, Operating Procedure (SOP), Technical Operating
social, and spiritual partner for its customers and the Guides, and Product Manuals. [GRI 3-3]
community at large. Furthermore, BSI continues with its
commitment to be present throughout the country with The Board of Commissioners and the Board of Directors
the aim of contributing to the inclusive development of are responsible for supervising and managing financial
Sharia Finance in Indonesia. [GRI 3-3] performance. BSI regularly supervises and evaluates the
Company’s Work Plan and Budget, financial statements,
ECONOMIC PERFORMANCE TARGETS and audit results of the financial statements. The result
AND OBJECTIVES of the evaluations will become the discussion agenda
BSI implements economic performance strategies in joint meetings of the Board of Commissioners and
and targets by seeking to improve efficiency and Board of Directors and in the General Meeting of
creating synergy between work units. Until 2023, BSI’s Shareholders.
extensive network has been one of our advantages
in our effort to reach communities at large. Recently, STRATEGIC MEASURES
BSI has been ranked fifth in terms of the number of In its efforts to realize the Bank’s vision and mission,
networks compared to other national commercial banks. BSI continuously accelerates, innovates, and optimizes
Compared to other sharia banks, BSI has the largest business opportunities through various strategic
network. This is both an opportunity and a challenge for measures and policies, among others, as follows:
BSI to consistently provide the best services.
Strengthening BSI will work on the wholesale segment with a focus on increasing the customer base and deepening relationships
Wholesale & with customers through transactional banking, organizational, and human capital capabilities, as well as offering
Transactional Banking comprehensive sharia products and services.
Strengthening Retail In line with the government’s focus on driving the economy through MSMEs, BSI will continue to strengthen retail
Banking banking, including through developing business partnerships, sharpening business models, digitalization, and improving
business processes.
Digital Capability BSI will accelerate mobile capability improvements (API, Product Segment), strengthen data analysis, increase system
Acceleration stability, and focus on improving the user experience.
Working on the BSI focuses on accelerating the growth of the national ZISWAF and developing the halal industry in Indonesia,
Potential of the Islamic such as mosques, hospitals, Islamic boarding schools and education, and the haj and umrah businesses, through the
Ecosystem development of innovative platforms & solutions as well as effective acquisition and implementation.
Office Network BSI will focus on structuring the office network by relocating or closing adjacent outlets, increasing the contribution
Arrangement margin of small or unprofitable outlets, and shifting branch transactions to digital.
Doing Inorganic BSI will strengthen capital in the context of business expansion and increase the share of public ownership in
Growth accordance with regulations by conducting a rights issue. BSI will also explore opportunities for inorganic growth.
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 41
Page 44
Introduction Economic Performance Social Performance Environmental Performance
Economic
Performance
In 2023, BSI’s business development strategy focuses 2) Increasing customer base for Wadiah Saving,
on: Business Saving, and Hajj Saving products.
a. Financing expansion in segments that have proven 3) Strenghtening of digital trasactional banking
resilient in the pandemic era, as follows: capability, both for institutional and individual
1) Focus on payroll-based consumer financing customers.
by expanding consumer marketing channel via 4) Enhancement of Digital and Transactional
digital platform, collaboration with wholesale- Banking services.
retail, developer, as well as third party partners. c. Development of digital capabilities and data
2) Increase penetration of pawn and gold analytics, both for internal and external purposes
installment products through digital services of BSI, so as to deliver quality and comprehensive
(mobile banking), cross selling within existing services to customers, as well as to speed up BSI’s
customers, and increasing productivity of sales business and operational processes.
agent in its network. d. Strenghtening of risk management and optimising
3) Increase financing to MSMEs, specificly remedial recovery.
through Sharia People’s Business Credit (KUR) e. Increasing employee and network productivities.
by intensifying micro product marketing and
developing cluster and partnership business ECONOMIC PERFORMANCE
model. ACHIEVEMENT [GRI 201-1]
4) Increase financing to wholesale segment through By the end of 2023, BSI has been successful in achieving
development of organisational capabilities and solid and positive economic performance. The Bank
Human Resource (HR), focus on improvement recorded a net profit of Rp5.70 trillion, which increased
of business processes, expansion of syndication by 33.88% compared to the previous year. While on
and value chain business, and development of sustainable finance performance, BSI has provided
trade business. financing of Rp57.7 trillion to sustainable business
b. Focusing business development on low-cost funds, activities.
with main strategies as follows:
1) Increasing acqusition of payroll service of
targeted customers and increasing penetration
of funding products in the Islamic Ecosystem.
Funding Financing Financing for
Total
Customers Customer Sustainable Business
Financing
Activities
19.65 million 1.16 million
Rp
240.3 trillion
Rp
57.7 trillion
42 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 45
Comparison of Product Targets and Performance, Portfolio, Financing or Investment Targets,
Revenue, and Profit and Loss (Rp billion) [SEOJK F2]
RETAIL BANKING
Financing
2023
Segment Growth YoY
(in billion Rupiah)
Retail Banking 42,258 12.29%
SME 19,346 2.40%
Micro 22,912 22.26%
Pawn 7,198 21.38%
Mortgage 52,517 9.25%
Automotive 4,186 51.61%
Multipurpose 51,336 20.14%
Pension 14,626 13.94%
Card 684 25.57%
WHOLESALE BANKING
Financing
2023
Segment Growth YoY
(in billion Rupiah)
Corporate 54,542 18.21%
Commercial 12,969 17.28%
Total 67,511 18.03%
THIRD PARTY FUND
2023
Product Growth YoY
(in billion Rupiah)
Demand Deposit 53,201 19.50%
Saving Deposit 124,726 7.08%
Wadiah Savings 47,026 6.36%
Non Wadiah Savings 77,700 7.51%
Time Deposit 115,848 15.29%
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 43
Page 46
Introduction Economic Performance Social Performance Environmental Performance
Economic
Performance
Realization of Sustainable Finance Implementation (Rp billion, unless stated otherwise)
[SEOJK F3]
SUSTAINABLE BUSINESS ACTIVITIES CATEGORY
2023 2022
(in billion Rupiah)
a. Renewable Energy 1,072.23 1,135.35
b. Energy Efficiency - -
c. Pollution Prevention and Control - -
d. Management of Living Natural Resources and Sustainable Land Use 4,805.87 3,095.21
e. Conservation of Land and Water Biodiversity - -
f. Environmentally-friendly Transportation 47.26 34.65
g. Sustainable Water and Wastewater Management 94.06 114.63
h. Climate Change Adaptation - -
i. Products that can Reduce use of Resources and Produce Less Pollution (Eco- 5,806.99 4,497.89
Efficient)
j. Green Building that meets National, Regional, and International Standards or 163.19 190.12
Certifications
k. Business Activities and/or Other Environmentally-Friendly Activities 245.09 258.79
Green Financing (KKUB) 12,234.69 9,326.65
l. MSME Activities 45,468.99 41,823.61
ESG Financing/Sustainable Financing (KKUB) 57,703.68 51,150.26
ESG Financing (KKUB) Ratio 24.07% 24.70%
Sustainable Financing to Total Financing
At the same time, in order to implement sustainable
ESG
finance measures, BSI has conducted a special study
Financing
of the financial implications and opportunities of
24.07
climate change to support operational preparation in
% the form of Business Impact Analysis (BIA) and Risk
Assessment (RA) reviews. The Bank has also carried out
Ratio of ESG financing portfolio
to total financing portfolio natural disaster simulation drills as part of its Business
Continuity Management (BCM) at each work unit. [GRI
3-3][GRI 201-2]
44 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 47
01 02 03
Conducting analysis of risk related to climate Conducting in-depth Conducting mitigations in
change and its impacts to Bank’s operations: analysis of issues related risk management, both in
to the impact of climate terms of internal changes
Increase of operational Increased risk in
risk due to external financing due to change on the Bank’s in behaviour that are more
factors that could occur debtors’ failure to financial. environmentally friendly,
in work units as a result fulfill their obligations and in terms of the impact
of natural disasters if their businesses
such as floods, forest are vulnerable and on funding to certain
fires, and drought. affected by climate business sectors.
change.
SUSTAINABLE FINANCE PORTFOLIO
In implementing sustainable finance measures, BSI refers to the Sustainable Finance Action Plan (RAKB) guidelines.
The RAKB 2023 document contains the Sustainable Finance Action Plan for a period of one year, i.e., 2023, and for
a five-year period, i.e., from 2021 to 2025, as well as the strategy to implement the plan according to the set targets
and timelines. In order to plan and carry out the implementation of the five-year Sustainable Finance Action Plan, the
Bank has conducted a synchronization of objectives and strategies that are contained in the Bank’s Corporate Plan
and the Bank’s Busines Plan (RBB).
In 2023, BSI has continuously improved its sustainable finance activities based on the three pillars, i.e. Sustainable
Banking, Sustainable Operation and Sustainable CSR, and Financial Inclusion. These activities are in line with the
objective of BSI, which is to continue to grow positively by becoming a partner in financial, social, and spiritual
matters for society. The positive growth of green financing, the increase in green activities, and the implementation
of a green economy based on maqoshid syariah have contributed positive values to sharia banking.
Portfolio of Economic Sector Funding
Throughout 2023, the Bank has successfully disbursed funding in total of Rp240.32 trillion to business players and
achieved 100.55% of the set target.
Financing Based on Economic (Rp billion)
No. Sector 2023 Percentage (%)
1. Agriculture, Hunting and Forestry 17,124 7.13%
2. Fisheries 765 0.32%
3. Mining and Exploration 2,393 1.00%
4. Manufacturing Industry 11,806 4.91%
5. Electricity, Gas and Water 4,768 1.98%
6. Construction 19,833 8.25%
7. Wholesale and Retail Trade 17,484 7.28%
8. Accommodation, Food & Beverage 2,758 1.15%
9. Transportation, Storage and Communication 8,346 3.47%
10. Financial Intermediary 5,870 2.44%
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 45
Page 48
Introduction Economic Performance Social Performance Environmental Performance
Economic
Performance
No. Sector 2023 Percentage (%)
11. Real Estate, Leasing and Business Service 3,868 1.61%
12. Government Administration, Defense, and Mandatory Social Insurance - 0.00%
13. Education Service 4,499 1.87%
14. Healthcare and Social Services 6,818 2.84%
15. Socio-Culture, Entertainment, and Other Individual Services 3,315 1.38%
16. Household Services 160 0.07%
17. Unclear definition Activities 4,499 1.87%
18. Household 130,481 54.30%
19. Other Non-Business Sectors 30 0.01%
Total 240,316
As MSMEs are one of the sectors that play an important role in the national economy, funding for MSMEs is also
a priority program of BSI. In 2023, the Bank continued to disburse financing to ESG (Environmental, Social, and
Governance)-oriented MSMEs, ranging from agricultural to household sectors of Rp45.56 trillion.
MSME Portfolio by Sector (Rp billion)
No. Sector 2023 Persentase (%)
1. Agriculture, Hunting and Forestry 9,508 20.87%
2. Fisheries 759 1.67%
3. Mining and Exploration 253 0.56%
4. Manufacturing Industry 3,062 6.72%
5. Electricity, Gas and Water 163 0.36%
6. Construction 1,549 3.40%
7. Wholesale and Retail Trade 14,677 32.22%
8. Accommodation, Food & Beverage 2,457 5.39%
9. Transportation, Storage and Communication 985 2.16%
10. Financial Intermediary 1,200 2.63%
11. Real Estate, Leasing and Business Service 1,655 3.63%
12. Government Administration, Defense, and Mandatory Social Insurance - 0.00%
13. Education Service 3,045 6.68%
14. Healthcare and Social Services 2,963 6.50%
15. Socio-Culture, Entertainment, and Other Individual Services 3,141 6.89%
16. Household Services 136 0.30%
17. Unclear definition Activities - 0.00%
18. Household - 0.00%
19. Other Non-Business Sectors 3 0.01%
Jumlah 45,558
46 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 49
Distribution of
Fostered People’s Business Credit
Financing Fund
MSMEs (KUR) financing
to MSME
Rp
45.5 trillion 3,009 Fostered MSMEs
Rp
20.98 trillion
ENVIRONMENTALLY-FRIENDLY BUSINESS PORTFOLIO
BSI’s sustainable financing or environmentally oriented business is carried out based on the criteria and Categories of
Sustainable Business Activities (KKUB) established by OJK in the Technical Guidelines of POJK No. 51/POJK.03/2017.
Based on these guidelines, BSI identifies sustainable financing consisting of MSME financing and non-MSME green
portfolios.
In addition, BSI also has a Corporate Plan (Corplan) and Standard Operating Procedures (SOP), which serve as
guidelines in preparing the RAKB and Bank Business Plan (RBB), including in developing the sustainable finance priority
program. This document regulates the procedures for the financing process for debtors who have environment-
oriented business activities.
The bank has green finance criteria, which is one of the considerations in providing financing. Every prospective
debtor’s business must meet the criteria for an analysis of environmental impacts, including:
No pollution in the production No pollution and waste No complaints from residents Compliance with all applicable
process treatment according to in the business premises government regulations, such
regulations as having a business license
After all the criteria are fulfilled, the Bank will then carry out several stages as follows:
01 02 03 04 05 06
Conducting evaluation Supervision and If the results have a If there are customers The Bank also In the future, the
and supervision of evaluation are high potential ESG risk, who are under conducts internal Bank plans to provide
customer business conducted through the Bank may conduct surveillance due capacity building by education or training
progress every three several communication a review of the to indications of providing training on programmes related to
months media including video financing provided environmental or social sustainable finance ESG to debtors
conference, on the problems, the Bank awareness, e-Module
spot visit, consultant will provide assistance, preparation, as well
assistance, quarterly quarterly and annual as digital learning on
watchlist review, and watchlist reviews sustainable finance
annual reviews socialisation of
Business and Support
Units
In 2023, BSI carried out an evaluation process based on these criteria, and there are no customers who have
significant environmental and social issues.
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 47
Page 50
Introduction Economic Performance Social Performance Environmental Performance
Economic
Performance
IMPROVING THE ISLAMIC ECOSYSTEM
BSI is committed to encouraging the development of a strong and comprehensive Islamic ecosystem, starting from
Ziswaf, the ecosystem of Islamic Schools and Islamic Boarding Schools, the Mosque Ecosystem, and the Hajj and
Umrah ecosystem. The Bank continues to encourage the improvement of the Islamic ecosystem, which has great
potential in terms of business, human resources, and transactions.
Achievement of BSI’s Islamic Ecosystem in 2023
Corporate Employee Hajj
Ziswaf
Zakat Zakat Ecosystems
Rp
190 billion
Rp
33 billion
Rp
1.5 trillion
Rp
14.6 trillion
Government & Non- Total outstanding Hajj and
Government Ziswaf with Umrah ecosystems with
31,629 customers 4,495,944 customers
Islamic School Mosque Pesantren Halal
Ecosystem Ecosystem Ecosystem Industry
Rp
5.6 trillion
Rp
4.6 trillion
Rp
1.1 trillion
Rp
1 trillion
Outstanding amount of Total outstanding of Outstanding amount of Outstanding amount of
Islamic school ecosystem mosque ecosystem with pesantren ecosystem with halal industry with 61,277
with 331,327 customers 550,251 customers 66,355 customers customers
INFORMATION TECHNOLOGY-BASED SERVICES
With the development of information and communication technology, BSI took the initiative to innovate by presenting
digital branch, e-channel, e-banking, and e-branch services. Through this technology-based service, customers’
financial transaction needs can be met without having to visit the branch. Indirectly, this transaction process not only
provides comfort, convenience, and efficiency but also helps to reduce the carbon emissions generated by customer
transport vehicles. [F.26]
Supporting the Laku Pandai Program
BSI has a Laku Pandai Agent called BSI Smart agent as a form of support for the development of the branchless
banking program from the Financial Services Authority (OJK). BSI Smart can help people who do not have access
to banking services conduct Islamic banking financial transactions. The various transactions that can be carried out
include deposits, withdrawals, transfers, or bookkeeping, as well as opening an account so that they can receive the
same banking services as other customers.
All BSI Smart agents have been provided with a briefing and training program to understand the product, product
features, benefits, procedures, service quality, and introduction to supporting facilities. With the spirit of inclusive
financial service, by the end of 2023, BSI has continued to expand its Laku Pandai program to produce 86,200 BSI
SMART agents.
48 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 51
Total Transaction
BSI Smart Agent Transaction Amount
86,200 Agent
Rp
19.6 million
Rp
43.8 trillion
FINANCIAL PRODUCT AND SERVICES RESPONSIBILTIES [SEOJK F27]
The Bank always ensures that BSI’s Islamic banking products and services can be obtained and enjoyed by all
customers, regardless of gender, race, ethnicity, physical, and faith backgrounds. All customers have equal rights to
use the products and services we provide through procedures in accordance with applicable policies and regulations.
[OJK F.17][OJK F.27]
Pursuant to the Standard Operating Procedures for New Products and/or Activities (SPO PAB), the Bank provides clear
information on products and services issued, such as information on deposit products, loans, and banking services.
The information is conveyed through several communication media, such as websites, social media, brochures, etc., as
well as through our customer service and banking agents. In addition, Group Marketing Communication also develops
marketing communication strategies and programs that refer to advertising ethics. This work unit also monitors
issues in the media related to the Bank’s products and services to mitigate product and service communication risks.
[OJK F.18][GRI 417-1]
Islamic financial statements also provide transparent features regarding available products, their costs, benefits, and
risks. In 2023, no products were recalled from the market, and no fines or other legal sanctions were imposed as a
result of alleged non-compliance or violations of applicable regulations relating to misinformation about products and
services and marketing communication materials. [OJK F.18][OJK F.29][GRI 417-2][GRI 417-3]
Furthermore, creditors’ rights at BSI are always protected through the application of Sharia principles governing
financial transactions, which not only prioritize fairness and transparency but also ensure that the rights of all parties,
including creditors, are respected and protected. The Bank maintains strict monitoring of assets and liabilities to
ensure sound liquidity and solvency. In addition, the application of Sharia-compliant Akad in financing products
guarantees the creditor’s right to receive repayment of funds in accordance with the predetermined agreement. The
Bank also complies with the regulations of the Financial Services Authority (OJK) and prudential principles to provide
an extra layer of protection for creditors.
Identification of Potential Negative Impacts and Actions Plan [OJK F.28] [GRI 2-25]
Although the Bank’s operations do not directly interact with the environment, BSI recognizes that banking activities
can still have a negative impact on the environment and society. Therefore, BSI has identified potential negative
impacts of the Bank’s operations and planned actions to mitigate these impacts, including the following:
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 49
Page 52
Introduction Economic Performance Social Performance Environmental Performance
Economic
Performance
Types of Potential
Potential negative impact Action plan
Impact
Greenhouse gas (GHG) GHG emissions can cause climate BSI is committed to reducing GHG emissions by increasing
emissions from the change energy efficiency in the Bank’s buildings, replacing
Bank’s operations operational vehicles with more environmentally friendly
vehicles, and promoting a low-carbon and environmentally
friendly lifestyle among employees.
Use of natural resources Excessive use of natural resources BSI is committed to using natural resources wisely and
can cause environmental damage, optimizing their use. The Bank will also promote energy and
decrease air and water quality, water savings among employees and raise public awareness
and cause negative impacts on the about the importance of conserving natural resources.
surrounding community.
Financial risks related to Climate change may increase BSI will continue to monitor financial risks related to climate
climate change financial risks for BSI, particularly change and develop effective risk mitigation
with respect to the risk of strategies. The Bank will also strengthen risk management
loss due to natural disasters. practices and promote sustainable business practices among
employees.
Protecting Customer Data Privacy
BSI recognizes that in this digital era, customer data privacy is a must that we must maintain. Therefore, in accordance
with POJK No. 1/POJK.07/2013 on Consumer Protection in the Financial Services Sector and Standard Procedures
for Fund Raising Business and SPO for Customer Protection and Complaints, the Bank always strives to provide a
strict authorization system through parties with responsibility and authority.
In this case, the Group Chief Information Security Officer (CISO) has duties and responsibilities for maintaining data
security and customer privacy. On a regular basis, the CISO conducts security awareness activities to strengthen
security parameters (firewall, waf, threat intel), conducts pentests according to the provisions, and conducts takedown
services to detect fraud. Meanwhile, CISO mitigation is carried out through digital threat monitoring, which is a
layered security test.
BSI has also implemented a security awareness education program through various channels, such as BSI Mobile, its
website, social media, and BSU (webinar). The objective of this program is to educate and raise customer awareness
about the security and privacy of their data. In addition, to ensure the security and protection of customers when
using BSI’s services, the Bank has measured the effectiveness of customer privacy. BSI evaluates BSI’s privacy policy
so that it can be implemented and understood by customers.
The 2023 measurement results show that the BSI privacy policy is effective and understood by customers. Most
customers feel safe and secure when using BSI services. Going forward, BSI will continue to improve customer
privacy and security through other innovative programs.
Throughout 2023, all complaints related to customer data privacy have been followed up on and responded to well
by the Bank. In the event of a customer complaint related to cybersecurity, BSI validates the report for escalation to
the Ministry of Communications and Information Technology (KOMINFO). In addition, the Bank also cooperates with
third parties to monitor customer privacy and reports regularly to KOMINFO. [GRI 418-1]
50 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 53
TOP 5 TYPES OF COMPLAINTS RECEIVED IN 2023 [GRI 418-1]
BSI ATM Cash
BI Fast Transfer TOP Up Dana
Withdrawal
71,039 58,362 41,054
Purchase/ CRM Machine
Top-up Cash Deposit
39,809 28,555
Financial Literacy and Inclusion
In support of the national financial literacy program, BSI took the initiative to carry out various educational activities,
such as releasing financial literacy-related content on social media and websites, as well as conducting several training
programs. We also strengthen synergies with various parties in improving Islamic financial literacy, one of which is by
collaborating with various universities to develop the Islamic ecosystem among the academic community and provide
financial literacy to students.
Customer Satisfaction Survey [SEOJK F30]
The results of a Satisfaction, Loyalty and Engagement (SLE) Index survey in 2023, published by Infobank in 2024,
show a significant increase. This shows that the Company has succeeded in increasing the level of satisfaction, loyalty
and engagement of its customers in that period. In turn, it reflects on the Company’s consistent efforts to improve
service quality and strengthen relationships with customers, which ultimately will have a positive impact on overall
business performance and growth.
Satisfaction, Loyalty, and Engagement (SLE) Index
52.50% 60.60%
Customer Satisfaction Customer Satisfaction
Survey 2022 Survey 2023
Information and Complaint Services [SEOJK F24]
To facilitate customers and the public in accessing information, BSI has a product and service information centre,
among others through:
1. Website with the address of www.bankbsi.co.id.
2. Social media: Facebook, Twitter, Telegram, Instagram.
3. BSI Call 14040.
4. AISYAH chatbot.
5. Convenience of mobile and internet banking facilities, as well as the Bank’s Branch Offices and ATMs.
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 51
Page 54
Introduction Economic Performance Social Performance Environmental Performance
Economic
Performance
In addition, as a form of consumer protection, the 6. Financial Services Authority Regulation No. 17/
Bank also provides a means for customers to submit POJK.07/2014 concerning Alternative Dispute
complaints. Currently, customer complaints received Resolution Institutions in the Financial Services
by the Bank are managed by the Customer Care Group. Sector.
The complaint channels that can be used by customers 7. Financial Services Authority Regulation No. 65/
to submit complaints are as follows: POJK.03/2016 concerning Implementation of Risk
1. BSI Call 14040. Management for Sharia Commercial Banks and
2. E-mail contactus@bankbsi.co.id. Sharia Business Units.
3. Customer Service at the nearest Bank Syariah 8. Regulation of Members of the Board of Governors
Indonesia branches. Number 23/17/PADG/2021 concerning Procedures
4. Mobile banking. for Implementing Bank Indonesia Consumer
Protection.
In 2023, BSI has received 469,851 complaints from 9. Financial Services Authority Regulation No. 31/
customers, and all have been resolved (100%). The POJK.07/2020 Concerning the Implementation of
Bank continues to be committed to providing prompt Consumer and Community Services in the Financial
responses to customer complaints. Complaints by Services Sector by the Financial Services Authority.
channel received are as follows: 10. Financial Services Authority Regulation No. 12/
POJK.01/2017 concerning Implementation of Anti-
Money Laundering and Counter-Terrorism Financing
Complaint Channels Number of Complaints
Programs.
Call Center 56,828 11. Bank Indonesia Regulation No. 22/20/PBI/2020
Mobile Banking 324,105 concerning Bank Indonesia Consumer Protection.
Social Media 2,246
12. Financial Services Authority Regulation No. 61/
POJK.07/2020 concerning Alternative Settlement
Branch Offices 85,966
Institutions for the Financial Services Sector.
Head Office 706 13. Financial Services Authority Regulation No. 6/
Total 469,851 POJK.07/2022 Concerning Consumer and
Community Protection in the Financial Services
In carrying out its operational activities, BSI always Sector.
refers to the policies and regulations applicable in 14. Circular Letter of the Financial Services Authority
Indonesia, namely: Number 30/SEOJK.07/2017 concerning the
1. Law of the Republic of Indonesia No. 8 of 1999 Implementation of Education in order to increase
concerning Consumer Protection and all of its Financial Literacy for Consumers and/or the
amendments. Community.
2. Law of the Republic of Indonesia No. 21 on 16 15. Circular Letter of the Financial Services Authority
July 2008 concerning Islamic Banking and all of its No. 7/SEOJK.07/2015 concerning Guidelines for
amendments. Assessment of Alternative Dispute Resolution
3. Law of the Republic of Indonesia No. 4 of 2023 Institutions in the Financial Services Sector
concerning the Development and Strengthening of 16. Circular Letter of the Financial Services Authority
the Financial Sector No.13/SEOJK.07/2014 concerning the Standard
4. Bank Indonesia Regulation No. 11/33/PBI/2009 on Agreement and all amendments thereto.
7 December 2009 concerning the Implementation 17. Circular Letter of the Financial Services Authority
of Good Corporate Governance for Sharia No. 17/SEOJK.07/2018 concerning Guidelines for
Commercial Banks and Sharia Business Units and all Implementing Consumer Complaint Services in the
their amendments. Financial Services sector.
5. Financial Services Authority Regulation No. 18/
POJK.07/2018 concerning Consumer Complaint
Services in the Financial Services Sector.
52 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 55
18. Circular Letter of Financial Services Authority No. 50/SEOJK.03/2017 concerning Reporting and Requesting
Debtor Information Through the Financial Information Service System (SLIK)
19. Bye Laws on October 30, 2009 concerning Blocking Customer Deposits and all their amendments.
20. The Articles of Association of PT Bank Syariah Indonesia and all amendments thereto.
21. PT Bank Syariah Indonesia’s Internal Control System Policy and all of its amendments
22. Risk Management Policy of PT Bank Syariah Indonesia and all of its amendments.
23. Legal, Compliance and AML CTF Policy of PT Bank Syariah Indonesia and all their amendments.
24. Operational Risk Management Standard Control Procedures (SPP) and all amendments thereto.
25. Standard Procedures for Policies and Procedures-Making for PT Bank Syariah Indonesia and all their amendments.
26. Operational Technical Manual (OTM) of Fund Collection of PT Bank Syariah Indonesia and all its changes.
Meanwhile, in terms of recording customer complaints, the Bank uses the Complaint Handling Management System
(CHMS) application with the following flow:
01 02 03 04 05 06
Customers submit Bank officers will Customer Data recorded in Complaints that Follow-up results
complaints through input complaints will receive a the CHMS will be have not been and settlement
the channels submitted by notification email monitored and resolved at the time information from
described above customers containing the followed up by the the complaint was the relevant
into the Complaint complaint number Customer Care submitted will be Work Unit will be
Handling as proof that the Group Unit followed up by the forwarded to the
Management System complaint has been Customer Care Unit recipient of the
(CHMS) received by the and related Work complaint receiving
Bank Units unit
Complaints submitted by customers can be divided into 2 (two) types, namely:
a. Verbal complaints, which consists of:
• Complaints must be responded to and/or resolved by the Complaint Recipient Work Unit/Customer Care
Work Unit/Relevant Work Unit within 3 (three) working days after the complaint is received.
• If the complaint cannot be resolved within 3 (three) working days, the Complaint Receiving Work Unit is
obliged to ask the customer to submit his complaint in writing.
b. Written complaints, which consists of:
• Complaints must be resolved by the Complaint Recipient Work Unit/Customer Care Work Unit/Relevant
Work Unit within a maximum of 14 (fourteen) working days after the complaint is received.
• If the complaint cannot be resolved within 14 (fourteen) working days, the recipient of the complaint must
submit written information on the time extension to the customer.
• Banks can extend the complaint resolution period up to the next 20 (twenty) working days (if necessary).
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 53
Page 56
Introduction Economic Performance Social Performance Environmental Performance
Economic
Performance
The Bank has a platform called BSI Call that makes it easier for customers and the general public to submit complaints.
The Bank also has a mechanism for filling out a complaint/request form available at all BSI branch offices throughout
Indonesia. All complaints received will be forwarded and recorded by the Customer Handling Unit and recorded
through the Complaint Handling Management System (CHMS). These complaints are categorized into four, namely:
Products, Processes/Transactions and Facilities, Services, and Banking Crimes.
Throughout 2023, BSI received 469,851 complaints and 100% of these complaints have been resolved.
Number of Complaints Received in 2023
435,122 5,150 28,461 1,118
Transaction Banking External Crimes Products Services
Process &
Facilities
100% STATUS CLOSED
54 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 57
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 55
Page 58
Introduction Economic Performance Social Performance Environmental Performance
SOCIAL
03 PERFORMANCE
56 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 59
“Bank Syariah Indonesia is committed to managing
the impact of all the company’s operational
activities by implementing social and environmental
responsibility (CSR) programs, which are
implemented through aspects of employment,
occupational health and safety, and community
empowerment in accordance with government
regulations on social impact as part of fulfilling ESG
(Environmental, Social, and Governance) aspects.”
EMPLOYMENT PRACTICES by building a culture, environment, and working
The Bank has established a Human Capital Roadmap relationships that are valuable to every BSI person.
to support the transformation of BSI’s organization and We also respect human rights, diversity, safety,
Human Resources (HR) to be innovative and proactive comfort, health, and support the development of each
in responding to future challenges and changes. The individual’s potential so as to provide excellent service
focus of the Human Capital strategy in 2023 is to to the community. [SEOJK F18][SEOJK F19]
increase employee productivity, improve business
processes, align performance with rewards, accelerate Composition and Distribution of BSI
employee capability development, and strengthen the Employees
integration of the Company’s risk awareness culture. [GRI 2-7] [GRI 405-1]
The focus aims to strengthen the fundamental policies BSI has recorded the composition and distribution of
of human capital. employees until the end of 2023. The data showed
that the total number of BSI employees spread across
To realize this goal, under the Director of Compliance our operational areas throughout Indonesia is 17,909
& Human Capital, BSI continues to provide a rewarding people. Of these, there are 7,367 female employees
work experience and become an employer of choice and 10,542 male employees.
2022 2023
Based on Gender and
Contract Status Permanent Non Permanent Permanent Non Permanent
(PKWTT) (PKWT – Contract) (PKWTT) (PKWT – Contract)
Male 10,572 436 10,220 322
Female 7,064 509 7,025 342
Total 17,636 945 17,245 664
18,581 17,909
Notes: There is no part-time scheme at BSI.
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 57
Page 60
Introduction Economic Performance Social Performance Environmental Performance
Social
Performance
Based on Gender and 2022 2023
Education Level Male Female Male Female
Doctorate 9 2 7 3
Magister 632 268 652 291
Bachelor 9,285 6,430 8,943 6,257
Diploma 1,033 865 910 810
Senior High School 49 8 30 6
Junior High School - - - -
Elementary - - - -
Others - - - -
Total 11,008 7,573 10,542 7,367
18,581 17,909
Based on Gender 2022 2023
and Position Male Female Male Female
Board of Commissioners 9 -
Director 8 2
Executive Manager (PE) 3 1
Senior Manager 68 20 75 21
Middle Manager 333 96 352 103
Manager 1,703 515 1,702 538
Officer 3,919 2,169 3,679 2,148
Staff 4,985 4,773 4,734 4,557
11,008 7,573 10,542 7,367
Total*
18,581 17,909
Notes: Total employees in this table include Board of Commissioners, Board of Directors, and Executive Managers.
Based on Gender 2022 2023
and Age Group Male Female Male Female
< 25 years 81 170 76 158
25-30 years 1,823 2,367 1,393 2,040
30-35 years 2,771 2,320 2,419 2,056
35-40 years 3,193 1,671 3,294 1,967
40-45 years 1,876 678 1,959 698
45-50 years 860 252 1,004 334
> 50 years 404 115 397 114
11,008 7,573 10,542 7,367
Total*
18,581 17,909
58 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 61
2022 2023
Based on Gender and Job
Placement Location
Male Female Male Female
Head Office 3,245 1,414 3,278 1,495
Region I – Medan 1,283 811 1,223 801
Region II – Palembang 637 470 598 454
Region III – Jakarta 882 626 830 594
Region IV – Bandung 693 766 640 707
Region V – Semarang 534 572 516 555
Region VI - Surabaya 679 477 609 464
Region VII – Indonesia Timur 767 587 714 562
Region VIII – Makassar 1,241 950 1,137 874
Region IX – Aceh 451 425 425 399
Region X - Banjarmasin 596 475 572 462
11,008 7,573 10,542 7,367
Total*
18,581 17,909
Workers who are not Employees [GRI 2-8] 2022 2023
Outsourcing 8,045 6,966
FAIR AND QUALITY RECRUITMENT In order to find competent and qualified candidates
The recruitment process at BSI is done with the aim of and develop the potential of Indonesia’s brightest
getting the best and most qualified human resources young men and women with BSI, we work with various
so that they are able to contribute maximally to external parties, such as the mass media, career centers
the Company’s business activities and operational in various universities, and headhunters. BSI also
performance. In this regard, BSI is committed to firmly opposes all forms of forced labor and does not
diversity, equality, and non-discrimination in the Bank’s employ minors, as stated in the recruitment policies,
work environment, which is then presented in various employment contracts, and company regulations that
HR management policies and programs through the have been socialized to all BSI personnel as well as
coordination of Human Capital Services Group. One of partners and suppliers. [SEOJK F18][SEOJK F19][GRI
the forms of our commitment is to conduct a recruitment 408-1][GRI 409-1]
process that upholds the principles of equality, fairness,
and transparency without discriminating against
gender, age, race, religion, physical condition, or other
background differences.
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 59
Page 62
Introduction Economic Performance Social Performance Environmental Performance
Social
Performance
In 2023, it was recorded that BSI had recruited 275 new employees consisting of 147 male employees and 128
female employees.
Recruitment of New Employees 2022 2023
by Position
[GRI 401-1] Male Female Male Female
Senior Management - -
Tenaga Ahli - -
Senior Manager 11 2 14 1
Middle Manager 6 2 12 3
Manager 10 7 10 5
Officer 5 3 13 4
Staff 85 25 5 13
Management Trainee 9 19 74 121
126 58 147 128
Total*
184 275
Recruitment of New Employee by
Employee’s Origin Region 2022 2023
[GRI 401-1]
Java 86 266
Outside Java 98 9
Total* 184 275
Notes: BSI categorizes employee’s origin region based on the initial Work Unit placement
Employees with disabilities at BSI
The Bank offers opportunities for people with their best in their roles. Another recruitment process
disabilities to work at BSI according to their abilities. for individuals with disabilities is through internship
This commitment aligns with the provisions of Law No. programs at the Change & Culture Academy.
8 of 2016 concerning Persons with Disabilities. The
recruitment process for individuals with disabilities BSI has 13 employees with disabilities as of the end
is guided by the principles of equality and solidarity, of 2023, consisting of 7 male employees and 6 female
facilitated by the Kriya program. This program employees placed in administrative, call center, and
provides mentoring for each employee, ensuring that back-office positions distributed across the HCS, CCG,
candidates with disabilities can actively participate and RO Aceh units.
in the recruitment process and ultimately perform at
60 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 63
EMPLOYEE TURNOVER RATE
Employee turnover occurs for several reasons, ranging from employees who have reached normal retirement age to
contract expiration, dismissal, resignation, health reasons, and others. For resignation or dismissal, the Bank refers to
Labour Law No. 13 and the applicable PKB; a letter must be submitted to the supervisor at least 1 month in advance.
[GRI 402-1] [GRI 2-30]
Throughout 2023, BSI’s employee turnover rate was 3.77%, with a total composition of 275 new recruits and 688
people who no longer joined the Bank.
Employee Turnover Rate by 2022 2023
Gender
[GRI 401-1] Male Female Male Female
New Employee (Recruitment) 126 58 147 128
Resigned 405 357 318 288
Retired 39 22 39 22
Passed away 16 10 16 5
Employee Turnover Rate 4.57% 3.77%
Employee Turnover Rate 2022 2023
by Age Group 21-30 31-40 41-50 >50 21-30 31-40 41-50 >50
[GRI 401-1] years old years old years old years old years old years old years old years old
New Employee (Recruitment) 112 51 15 6 229 24 17 5
Resigned 351 307 94 10 210 308 81 7
Retired - 4 6 51 5 8 48
Passed away 7 11 6 2 2 10 7 2
Employee Turnover Rate by 2022 2023
Work Area
[GRI 401-1] Java Outside Java Java Outside Java
New Employee (Recruitment) 86 98 266 9
Resigned 498 264 412 194
Retired 47 14 44 17
Passed away 13 13 8 13
EMPLOYEE REMUNERATION SYSTEM [GRI 405-2]
The management of the remuneration (reward) system is one of the Bank’s strategies for providing employees with
remuneration, which may be financial or non-financial in nature, that is competitive but still in line with the Bank’s
capabilities. Bank Syariah Indonesia’s reward system policy in 2023 is to align the remuneration position of employees
to be more competitive with the market. The amount of remuneration provided has been adjusted to the applicable
regulations and is above the minimum wage standard applicable in the Company’s operational area.
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 61
Page 64
Introduction Economic Performance Social Performance Environmental Performance
Social
Performance
Rewards are given by the Bank by prioritizing the principles of competitiveness and fairness based on performance
and risk and considering the implementation of best practices in the banking industry. In order to maintain market
competitiveness, the Bank regularly participates in the Annual Salary Survey in the Indonesian banking industry,
conducted by a competent independent survey agency. In determining remuneration, every employee has the
same rights without distinction based on background, such as gender, race, religion, ethnicity, and certain physical
conditions. BSI’s own remuneration policy is carried out by considering achievement, length of service, key
performance indicator (KPI) achievement, and length of service, which are always reviewed annually.
3P Remuneration Determination System
Pay for Position Pay for Person Pay for Performance
Employees are compensated in Employees are compensated according Employees are compensated according
accordance with their position. to their individual skills. to their performance.
Remuneration is provided by the Bank to motivate our employees to optimize their performance, both for personal
and corporate development, to maintain a competitive position in the market, and to retain talented employees. In
addition, the reward is also an effort to attract the best talent in the industry needed by the Bank to achieve business
objectives and maintain business continuity.
Not only salaries and employee benefits, we also provide a Financial Institution Pension Fund (DPLK) program for
permanent employees through contributions from employees and the Company every month, as well as various other
facilities to support the performance of our employees. The Bank also provides additional benefits for employees
affected by the COVID-19 pandemic in the form of vitamins, shuttle buses for work, and Grabcar corporate facilities.
[SEOJK F20]
Forms and types of benefits/allowances Permanent Contract
[GRI 401-2] [GRI 201-3] Employee Employee
Basic Salary √ √
Life Insurance/BPJS Health √ √
Health Benefits, including birth allowance √ √
Work Accident (JKK) and Disability Insurance - Included in BP Jamsostek facilities √ √
Pension Insurance (JP) - Included in BP Jamsostek facility √ √
Share Ownership Opportunity √ -
Hari Raya Allowance √ √
Leave Allowance √ √
The Bank provides both financial and non-financial rewards. Examples of financial rewards include annual bonuses,
health facilities, leave days, employee financing, and the provision of other facilities based on the performance of the
Bank, the work unit, and the individual employee.
An example of non-financial rewards is the provision of Umrah appreciation for BSI’s best employees by sending 814
employees in the first quarter (Q1) of 2023. The Umrah appreciation is a Unique Value Proposition (UVP) of BSI in
the market as one of the largest Islamic banks in Indonesia by promoting Islamic spiritual values for recipients of the
Umrah appreciation. The Bank also provides benefits in the form of facilities for both celebrations and bereavement,
as well as assistance for employees affected by natural disasters and civil unrest.
62 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 65
Other non-financial rewards are also provided in the form of recognition to business units and individuals based on
the best innovations that have an impact on the Bank’s performance. This includes the achievements of a special unit
or individual that have had a significant impact on BSI’s business, performance, or reputation. The appreciations are
presented at the “BSI Excellence Award” event as the highest form of appreciation from the Bank.
As a form of appreciation and commitment to employee welfare, the management conducted annual increments,
continued the provision of token bonuses in the middle of the year, and launched the second period of the Employee
Financing Facility (FPP) product to make it easier for employees to fulfill their housing and vehicle needs.
BSI‘s Children Scholarship
The Bank provides scholarship facilities in collaboration including retired BSI employees with children who
with the BSI Maslahat Institution for educational levels are still in school. The Bank’s support by providing
ranging from Elementary School (SD) to University these amenities is a gesture of appreciation for the
(PT) in accordance with the Technical Guidelines committed efforts contributed by employees to BSI,
for Operations PTO for Children’s Scholarship. This fostering positive relationships between BSI, its staff,
scholarship includes assistance from registration fees and their families.
to monthly stipends given to scholarship awardees,
ensuring the continuity of education for the children of The BSI Children’s Scholarship offers educational
BSI employees and/or retirees. grants from elementary school up to university
level, adhering to specified criteria and scholarship
BSI has designated recipients eligible for this scholarship allocations. In 2023, the number of beneficiaries of the
facility as children of permanent employees, contract BSI Children’s Scholarship was 115 children, spread
employees, and Outsourced Workers (TAD) who across 13 provinces in Indonesia.
suffer from serious illness or disability or are deceased,
EMPLOYEE PERFORMANCE APPRAISAL SYSTEM
BSI implements a transparent and accountable employee performance appraisal system, with the following objectives:
1. Supporting the achievement of organizational goals through employee performance.
2. Develop a positive and productivity-oriented corporate culture.
3. Increase employees engagement.
The performance management process is carried out on an ongoing basis by ensuring alignment, from the setting of
corporate objectives, through business unit objectives and targets, down to the individual level. In this way, strategic
alignment is maintained from the corporate level to the individual level, and there is a link between individual
performance and the Bank’s performance.
The annual performance management cycle is divided into 3 (three) stages, starting with performance planning to
develop individual employee KPIs (Key Performance Indicators), followed by a mid-year review that is conducted in
the middle of the year to see progress against employee KPIs during that period. Furthermore, it ends with a year-
end evaluation (performance evaluation) to assess employee performance from the beginning to the end of the year
period.
In the process of managing employee performance, the Bank prioritizes the establishment of 2 (two) way communication
between employees and managers to create a harmonious relationship by providing suggestions for improvement/
feedback that managers can give to improve employee performance. The entire performance management process is
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 63
Page 66
Introduction Economic Performance Social Performance Environmental Performance
Social
Performance
conducted online through the Human Resource System (Sistem Informasi Pegawai/SIP), making it easy for employees
to access and store all information about their performance. The feedback from the end-of-year performance review
is used as an employee development plan for the following year.
BSI Employee Promotion System
One form of employee career development is through a promotion mechanism. The Bank classifies the promotion
process as follows:
a) Promotion of Position
Promotion of Position is the process of moving employees from a lower job group to a higher job group.
Career advancement begins when an employee meets the qualifications of the position in accordance with the
requirements of the intended position.
b) Grade Promotion
Grade promotion is the process of adjusting grade to a higher grade. The Bank may consider granting grade
promotions to employees who fulfil the predetermined parameters and are in line with the Bank’s capabilities.
EMPLOYEE DEVELOPMENT AND TRAINING [SEOJK F22]
BSI is committed to encouraging each employee to maximize their potential from an early stage through a variety of
structured, comprehensive, and tiered leadership development programs. In practice, various employee development
programs at BSI focus on basic, managerial, and leadership competencies with a broad variety of development tools,
including training, mentoring, rotation of positions, career development, leadership coaching, and feedback sessions.
In accordance with the Bank’s policy, the approach to competency development and employee learning is based on
the experience, engagement, and education approach. The composition of development is adjusted to the level and
needs of current and future positions.
a) Experience
Competency development and employee learning are carried out through real work experience or other
assignments which can take the form of, among others: placement and assignment (rotation/mutation), temporary
assignment (detachment), assignment to the Bank’s strategic projects, attachment (internship) to the parent
company or other companies in the group, on the job training and role play.
b) Engagement
Competence development and employee learning is carried out through individual interaction between employees
and others designated by the Bank, which may take the form of, but is not limited to, coaching, counselling and
mentoring.
c) Education
A systematic program of competency development and employee learning that can be done independently or in
class according to the types of learning services.
The training and competency development programs are held in various forms, such as seminars, workshops,
knowledge sharing, sharing sessions, and training. To ensure that all BSI employee development and training programs
are on target, there is a work assessment through Training Needs Analysis which includes performance planning,
review, and evaluation mechanisms. This process aims to ensure that each employee’s competency development
program is carefully planned based on performance and assessment of KPI achievement, so as to support personal
development as well as career path projection for employees.
Some of the programs that have been implemented in 2023 to support the implementation of the Human Capital
strategy focus, among others, are the implementation of the Middle Manager Development Program (MMDP), Senior
Manager Development Program (SMDP), S2 Scholarship Programme for BSI talent employees in 2023, updating the
Human Capital Information System (HCIS), and implementing the Culture Summit.
64 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 67
By 2023, 100% of BSI employees had received performance and career development reviews, with 1,392,792 hours
of training attended by 17,862 employees. In addition, BSI continues to intensify the implementation of training
programs through the Digital Learning Module so that employees can obtain information and improve their skills
easily, quickly, anytime, and anywhere via smartphone devices. [GRI 404-3]
Number of Training Participants by Position Level [GRI 404-1]
Number of Participants (person)
Position Level
2022 2023
Senior Manager 2,956 2,369
Middle Manager 15,477 13,381
Manager 89,096 71,757
Officer 224,873 178,424
Staff 300,651 255,105
Lainnya 0 0
TOTAL 633,053 521,036
BSI Employee Training and Development Statistics [GRI 404-1]
Total
Description Unit
2022 2023
Training program Type 744 1,118
Number of Training Participants Persons 633,053 521,036
Average training hours per employee hour/employee 122,40 78
Total Training Duration by Position Level [GRI 404-1]
2022 2023
Total Duration Average Total Duration Average
Position Level Number of Number of
of Training training hours of Training training hours
Employees Employees
Provided per person Provided per person
(person) (person)
(Hours) per year (Hours) per year
Senior Manager 19,810 88 225.11 14,938 95 157.24
Middle Manager 96,763 429 225.55 53,475 446 119.90
Manager 381,751 2218 172.11 246,884 2,235 110.46
Officer 776,315 6088 127.52 496,120 5,798 85.57
Staff 999,688 9758 102.45 581,375 9,288 62.59
Others - - - - - -
TOTAL 2,274,326 18,581 122.40 1,392,792 17,862 78
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 65
Page 68
Introduction Economic Performance Social Performance Environmental Performance
Social
Performance
Training Costs in 2023
Rp90.64 billion
Total training costs for the year 2023 incurred by BSI for internal training programs and training at external
educational institutions. This value has decreased compared to 2022, from Rp 97.22 billion to Rp90.64 billion.
Employee Retirement Training Program
The Bank has a training or preparation program for employees entering retirement age, so that the program
can be implemented in a structured manner with clear participant criteria and a more planned schedule. The
training is also attended by the employees’ spouses.
In 2023, the Bank conducted a Retirement Preparation Training program attended by 90 BSI employees
who are nearing retirement age. The event was a preparation for employees to face their retirement period.
“Training for Trainers” Program
BSI and LPPI collaborate to host the “Training for Trainers” program, which takes place in person at LPPI’s
venue. This training program is attended by 25 BSI employees. This program is based on BSI’s awareness
of the importance of the trainer’s role in conveying the Bank’s values to other employees. Additionally, the
program aims to build and develop the effectiveness of a trainer in achieving the instructional goals set in
a training program.
Prior to the training session, participants will undergo an assessment to gauge their skills. Subsequently,
they will engage in the Training of Trainers program to monitor the progression of their abilities both before
and after the training.
MANAGING INDUSTRIAL RELATIONSHIP
BSI strives to create harmonious relationships and benefits for all parties working within BSI’s operational scope.
In its implementation, BSI opens the door of communication to all employees as part of the implementation of
the principle of respect for workers’ rights and social justice. All employees have the opportunity to express their
different aspirations and opinions to the Company through the communication mechanisms and rules provided.
66 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 69
BSI also provides employees with freedom of association, assembly, and expression in accordance with applicable
laws and regulations. This includes consideration of gender equity and diversity in the management of industrial
relations with the formation of Sharia Bank Trade Unions.
Number of Labor Union Participants
Number of Employees as Number of Labour Union
Labour Union Percentage
of December 2023 Members
Member of BSI Labour Union 17,909 8,896 50%
MANAGEMENT OF EMPLOYEE GRIEVANCES
In order to create a valuable workplace for all employees, the Bank has developed rules on grievances through Article
55 of the Company Regulation of PT Bank Syariah Indonesia Tbk for 2021-2023, which serves as a reference for
employees to file grievances, resolve grievances, and/or find solutions to labor disputes through consultation. This
is in line with BSI’s spirit of building constructive good relations, including in terms of handling employee grievances.
The following is the mechanism for handling employee grievances:
Agree
Stages Settlement Mechanism or
Not
Grievance Submission Settlement Mechanism
Stage 1
DirekturForm
• Fill out the Grievance Utama Direktur
Meeting with Utama Superior
Immediate
• Trade Union Assistance (if needed)
Stage 2
• Completing the Stage 2 Grievance Form Meeting with Immediate Superior Completed
• Trade Union Assistance (if needed)
Bipartite Negotiations between Employees
Stage 3 (Bipartite negotiation)
and Representative Employees at the Regional
• Fill out the Stage 3 Grievance Form
Office/Supervision Group with the knowledge of
• Trade Union Assistance (if needed)
the Human Resources Management Unit
Stage 4 Tripartite Process up to Court
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 67
Page 70
Introduction Economic Performance Social Performance Environmental Performance
Social
Performance
OCCUPATIONAL HEALTH AND SAFETY [SEOJK F21]
In the management of Human Resources (HR), BSI also strives to create an ideal working environment that supports
the creation of a sense of security and comfort for employees. For this reason, BSI is committed to implementing
Occupational Health and Safety aspects (OHS) as part of its efforts to create a sustainable business and achieve
zero accidents in all areas of BSI’s operations. The OHS program not only focuses on the physical aspects, but also
the psychological and mental health aspects of our employees. In light of the ongoing pandemic since 2020, BSI has
implemented various health protocols and policies to encourage recovery. In addition, the Bank also provides health
insurance facilities to all employees and their families, as well as the BPJS Health and BPJS Employment programs.
OHS programs and activities at BSI are managed and evaluated regularly by the HCP under the supervision of the
Director. BSI’s implementation of OHS covers the safety and health of employees, customers, suppliers, and other
stakeholders, which refers to a number of regulations, including Law of the Republic of Indonesia No. 13 of 2003
on Labor, Foundation Law No. 11 of 2020 on Job Creation, PP No. 35 of 2021, Human Capital Standard Operating
Procedures, and Bank Syariah Indonesia Company Regulations, which are always updated according to statutory
provisions.
Occupational Health and Safety in BSI
[SEOJK F21] [GRI 403-1][GRI 403-3][GRI 403-6] [GRI 403-7]
Environmental & Human &
Procedural Factors Communication Factors
Ensuring that all BSI office facilities meet Carrying out communication, safety program
OHS standards in accordance with Human campaigns, and routine OHS socialization for
Capital Operational Procedures, namely: all BSI employees related to OHS procedures
• Light Fire Extinguishers (APAR); and evacuation procedures in the event of an
• Fire hydrant and fire pump; emergency condition, among others:
• Smoke control system; • Fire drill
• Alarm system; • Improve understanding of the use of APAR
• Water sprinkle; evacuation route and APAB and first response in the event of
instructions; a fire
• Creation of ERP (Emergency Response • Earthquake handling
Plan); • Handling terrorism threat conditions
• Provision of emergency response SOP • Appointment of Floor Captain for each floor
(Standard Operating Procedure); • Establishment of ERT (Emergency Response
• Ensuring the building protection system Team)
functions Automatically and Integrated • Creation of WhatsApp Group as a means of
during General Alarm/Fire Drill; communication
• Ensuring that evacuation facilities are • Organizing emergency response training
Safety equipped with designation signs and have • Organizing training on the use of APAR
met building operational standards in the • Conducting emergency simulation
event of an Earthquake, Fire and BOM
Threats.
Ensuring the conditions of all BSI offices are Carrying out various health campaigns
comfortable and healthy for employees and and routine Medical Check Ups for all BSI
all visitors and ensuring Standard Operating employees, among others, focusing on:
Procedures for maintaining a healthy work Various healthy lifestyle tips:
environment are owned by BSI offices which • Lung and Respiratory Health
include, among others: • Preventing heart disease and high blood
• Periodic fogging pressure
• Installing UV-C air filters • Dental health
• Ensuring Air Circulation is functioning • Digestive problems such as GERD, ulcers,
properly, including SAG and RAG gallstones and diarrhea
• Preventing diabetes complications
• Healthy lifestyle
Health • Eye health
• Low back pain
• Staying healthy during the month of
Ramadan
68 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 71
Statistical Performance of BSI OHS in 2023
Work Accidents Number of BSI Safety Health Seminar
Training Hours Captain
0 44 135 22
Number of Accident Training hours and BSI Safety Health seminar sessions
[GRI 403-9] OHS socialization Captains spread were held in various
[GRI 403-5] throughout the operational areas of the
Bank’s operational Bank, both online and offline
areas. throughout Indonesia called
[GRI 403-5] the “Wellness Program”.
[GRI 403-6]
BSI Health Program [GRI 403-4]
BSI implements a Wellness Program to foster healthy at work. Additionally, the Bank provides health facilities
habits among its employees through educational for employees’ families. Each individual is expected to
programs, health services, and coaching. One form of maintain their health by adopting healthy lifestyles as
health education is through the Health Newsletter. early as possible to enhance the Bank’s productivity.
Employees receive periodic information on the latest For health facilities, the Bank has established the BSI
health issues through the “Healthy Info” Newsletter Medical Unit. The BSI Medical Unit is a health unit
and in the “Health Talk” forum held at both the located on the 10th floor of The Tower building and is
Headquarters and Branch Offices, enabling employees intended for all BSI employees. The BSI Medical Unit
to be more aware of maintaining their own health. provides doctor and nurse services to handle common
The total number of participants in Health Talk was cases in outpatient care. The bank’s concern for health
1,197 online and 905 offline. The Bank also provides is not only preventive but also curative because
employees with the opportunity to check their health the Bank believes that by providing full support for
conditions through the Medical Check-Up (MCU) easy access to health services, it can create peace of
program in collaboration with insurance provider mind and trust among employees, thus contributing
hospitals and Mini MCU for blood sugar, cholesterol, optimally to the Bank.
uric acid, and blood pressure checks during Health
Talk sessions. The Bank conducts In-House MCU to In addition, Bank Syariah Indonesia also has the BSI
facilitate MCU implementation at office locations both Club, with one of its activities being sports held
at the Headquarters and Branch Offices. There is also periodically. The BSI Club serves as a platform for the
an Employee Fit activity as a follow-up to the In-House Bank to promote a healthy culture to employees and as
MCU activity, for employees who need treatment a medium for employees to exchange ideas to improve
based on MCU results. The goal of Employee Fit is to the Bank’s performance.
promote healthy living habits and increase productivity
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 69
Page 72
Introduction Economic Performance Social Performance Environmental Performance
Social
Performance
SOCIAL AND ENVIRONMENTAL RESPONSIBILITY
As part of BSI’s commitment to supporting the achievement of the Sustainable Development Goals (SDGs), we
are implementing a Social and Environmental Responsibility (CSR) program with the primary aim of benefiting our
operating environment, the communities we serve, and our stakeholders. [SEOJK F23][SEOJK F25][GRI 413-1]
Legal Basis for Implementing the TJSL Program Objectives of Implementing the TJSL Program
• Law No. 40 of 2007 concerning Limited Liability Companies • Fostering a harmonious relationship between the Company
• Law No. 25 of 2007 concerning Investment and society
• Law No. 23 of 2011 concerning Zakat Management • Supporting the implementation of transparent and
• Standard Operating Procedures (SOP) and Operational responsible business practices
Technical Guidelines (OTG) • Building a positive image and garnering community support
• 123/DSN-MUI/XI/2018 on the Use of Funds That • Exploring and empowering the potential of SMEs through
Should not Be Recognized as Revenue for Sharia Financial partnership fund distribution
Institutions, Sharia Business Institutions, and Sharia • Participating in environmental conservation programs,
Economic Institutions. improving the quality of education, health, welfare, religious
life, and other public infrastructure improvements.
BSI’s social programs are implemented by the Bangun Sejahtera Indonesia Maslahat Foundation, commonly referred
to as BSI Maslahat. The Foundation was established on 21 November 2001, under the name Bangun Sejahtera Mitra
Umat Foundation (BSMU Foundation), which changed its name and logo to Bangun Sejahtera Indonesia Maslahat
(BSI Maslahat) in 2022. The establishment of BSI Maslahat is expected to strengthen relationships with various
strategic partners in the management of ZISWAF (Zakat, Infaq, Sadaqah, and Waqf) funds as well as social and CSR
donations targeting individual and corporate muzakki (donors).
BSI Maslahat carries out its program to support and strengthen the potential of Mustahik (beneficiaries) so that
Mustahik have the opportunity and are able to compete to raise the level to a better life. Beneficiaries of the BSI
Maslahat program based on asnaf include the poor, muallaf, slaves, gharimin, fisabilillah, and ibnu sabil.
In the distribution of zakat, BSI Maslahat cooperates with the National Amil Zakat Agency of the Republic of
Indonesia (BAZNAS RI), which is the official government institution mandated to the management of zakat nationally
as stipulated in Law No. 23 of 2011. Then, BAZNAS formed the Zakat Collection Unit of the National Amil Zakat
Agency of PT Bank Syariah Indonesia Tbk (UPZ BAZNAS BSI) on 20 May 2021, through the Decree of the Chairman
of BAZNAS number 19 of 2021 concerning the Establishment of UPZ BAZNAS BSI. The task is to help BAZNAS
collect zakat in the BSI environment, distribute it, and utilize it based on the authority of BAZNAS RI.
All of these efforts represent the Bank’s real commitment to ensuring that the TJSL and Zakat funds distributed are
managed professionally and transparently so that they can provide optimal and targeted benefits to the people who
benefit from this program.
70 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 73
During 2023, BSI through BSI Maslahat has carried out
13
programs
1,019 333
beneficiaries
thousand
beneficiary institutions
With the total value of UPZ BSI distribution, Zakat, Infaq, Social Funds, and Waqf in 2023 reached
Rp
255.10 billion
Following is the description of the community social programs implemented by BSI Maslahat throughout 2023. They
are divided into 3 main program groups, including: [SEOJK F23][SEOJK F25][GRI 413-1]
COMMUNITY PARTNERSHIP
DESA BSI
Desa BSI is a community empowerment program developing village economies in 10 provinces across
focused on economic development by optimizing the country, benefiting 4,095 individuals.
local resources such as agriculture, animal husbandry,
and horticulture. It also strengthens institutional Through the Desa BSI program, BSI and BSI Maslahat
and marketing aspects and implements appropriate aim to develop more villages in Indonesia with
technology. This program is conducted with intensive economic resource potential, making them prosperous
mentoring, both technically and through Islamic economically, socially, and spiritually. In assisting those
preaching approaches. Its goal is to improve community fostered villages, BSI implements strategies from
welfare through the utilization of ZISWAF funds. upstream to downstream aspects, including managing
and utilizing ZIS funds for program beneficiaries,
BSI Awarded “Special Recognition of Outstanding business cluster development coaching, and access to
Initiative” for the BSI Village Program financing and market access. Through this program, BSI
aims to facilitate beneficiaries through strengthening
PT Bank Syariah Indonesia Tbk (BSI) received the and developing local economic resources for
“Special Recognition of Outstanding Initiative” at the sustainable benefits.
Indonesia Awards 2023 for the Bank‘s initiative in
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 71
Page 74
Introduction Economic Performance Social Performance Environmental Performance
Social
Performance
BSI MASLAHAT MSMEs
The BSI MSME Maslahat (Build Prosperous Indonesia) BSI Maslahat held a webinar on “Education and
program strengthens ultra-micro and micro business Support for Halal Product Certification and Assurance
players by enhancing their knowledge and managerial Management for the BWM Program MSMEs.” One
capacities to sustainably improve the quality and of the objectives of this webinar is to assist MSMEs
quantity of their businesses. The program approach under the BSI Maslahat BWM program in obtaining
involves intensive mentoring and coaching. halal product certification. The webinar covered topics
such as the definition and assurance of halal products,
In 2023, the BSI MSME program expanded to 19 the benefits of halal products and certificates, the
business clusters across various commodities spread procedure for obtaining halal product certificates, and
across 11 provinces throughout Indonesia. The total halal product marketing strategies.
number of beneficiaries reached 693 households.
BSI Maslahat is committed to supporting MSMEs to
BSI Maslahat Provides Education and Support for Halal grow and compete in the market. One of the efforts
Certification and Assurance Management for MSMEs made by BSI Maslahat is to provide mentoring and
training to MSMEs, including training related to halal
products and halal product assurance.
PUBLIC EDUCATION
BSI’S EMPOWERED ISLAMIC BOARDING SCHOOLS
The Empowered Islamic Boarding Schools program businesses at Mangkoso Boarding Schools from
aims to enhance the independence of Islamic December 17, 2023, to January 11, 2024, coinciding
boarding schools through economic resource and with the 85th anniversary of the Darud Da’wah Wal
entrepreneurship development. By the end of 2023, Irsyad (DDI) universe, especially the DDI Mangkoso
the Islamic boarding school empowerment program Boarding School.
has been implemented in 12 Islamic boarding schools
spread across 6 provinces in Indonesia, benefiting 624 Through the provision of assistance to the
students. Empowerment Program for Islamic Boarding Schools,
besides supporting the independence of the DDI
BSI and BSI Maslahat Distribute Economic Mangkoso Barru Boarding School, it is also expected to
Empowerment Programs for Minimarket Businesses at strengthen the economic aspects of boarding schools,
Mangkoso Boarding Schools especially those providing education for orphans and
the needy through empowerment programs, especially
BSI and BSI Maslahat provide assistance in the in the BSI Islamic ecosystem network.
economic empowerment program for minimarket
72 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 75
FRIENDS OF INDONESIAN STUDENTS
Friends of Indonesian Students (SPI) is one of the - National defense training and self-development
education scholarship programs provided to financially - Parenting skills training for parents of participants
disadvantaged students at the junior and senior high
school levels. The scholarships provided by Laznas During the period 2022-2023, the beneficiaries of
BSM are intended to shape academically and spiritually this program reached 2,228 individuals, consisting
good generations, Islamic morals, and independence. of 377 junior high school students and 1,851 senior
The forms of assistance include: high school students spread across 108 schools in 25
- Education funding assistance of Rp300,000/month provinces of Indonesia. Through this program, 148
- Faith and morality mentoring participants of the Friends of Indonesian Students (SPI)
- Tahsin and tahfidz programs program successfully passed the State Universities
- Mentorship, tryouts, and tutoring for grade 12 (PTN) in 2023.
BSI SCHOLARSHIP
BSI Scholarship is a bachelor’s degree scholarship Thousands of Students Apply for BSI Scholarship 2023
program aimed at shaping future leaders of the BSI and BSI Maslahat recorded that 34,000 students
community who are characterized by integrity and can have applied for the BSI Scholarship program in 2023.
serve as role models in building the Islamic community, This figure doubled compared to 2022. This program
particularly in the field of Shariah economics. This targets undergraduate or S1 students in the 3rd and
program consists of BSI Inspiration funded by zakat 5th semesters and will last for 2 years.
and BSI Achievement funded by infaq. In addition to
tuition assistance, the BSI Scholarship program also The BSI Scholarship program consists of two types:
includes mentoring programs such as mentorship, the BSI Achievement Scholarship program and the BSI
Shariah economic literacy, character development, Inspiration Scholarship program. The BSI Achievement
Islamic studies, and leadership. Scholarship program is aimed at outstanding students
from various campuses and majors that have been
Currently, the BSI Scholarship program is open to designated. Meanwhile, the BSI Inspiration Scholarship
71 campuses across Indonesia with a total of 1,490 Program is a scholarship aimed at equalizing education
beneficiaries. In 2023, the BSI Scholarship recorded for underprivileged students.
253 achievements at the national and international
levels.
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 73
Page 76
Introduction Economic Performance Social Performance Environmental Performance
Social
Performance
BSI MASLAHAT SOCIOPRENEUR
BSI Maslahat Sociopreneur is a program aimed at In 2023, the beneficiaries of BSI Maslahat Sociopreneur
ensuring that graduates not only focus on finding jobs reached 100 students. Among them, 93 business
but also on creating job opportunities. BSI Maslahat participants have been sustainable and growing, able to
provides business incubator scholarships that prepare employ 104 people, and produce local heroes through
students to become Muslim entrepreneurs who village empowerment.
have business skills and make an impact on society.
BSI Sociopreneur seeks to shape and support the
development of Islamic-minded social entrepreneurs
in Indonesia in line with the values of “BSI & BSI
Maslahat”.
Shariah Economic Literacy (LIKES)
The LIKES (Shariah Economic Literacy) program is a Muda Berbagi is a Shariah economic literacy program
center for research, education, and communication related to ZISWAF aimed at young professionals
about Shariah finance managed by BSI Maslahat. This in Indonesia, especially among ministries and
program has three main focuses: literacy, consultation, SOEs nationwide. Shariah economic literacy Muda
and cadreship. Literacy activities are conducted by Berbagi is held in 5 SOEs, namely PT Hutama Karya,
providing online and offline studies within the BSI PT Superintending Company of Indonesia (Sucofindo),
ecosystem. PT Bio Farma, PT Perkebunan Nusantara III, and
PT Danareksa.
BSI Maslahat Holds Shariah Economic Literacy
through Muda Berbagi The Muda Berbagi curriculum is divided into 5 sessions
BSI, BSI Maslahat, Rabu Hijrah, and the Islamic with themes such as blessed income, the beauty
Economic Community (MES) held a Shariah economic of sharing, contemporary ZISWAF, contemporary
literacy agenda for 5 SOEs through the Muda Berbagi transactions, and family transactions.
Program every Wednesday with different themes.
BSI SCHOLARSHIP TALENTA
BSI Scholarship Talenta is a final year college scholarship - Final project fee assistance 2 million/awardee
program that focuses on preparing undergraduate - Post-campus career guidance
students to have the ability to be ready to work with - Personal leadership & technical managerial training
leadership and managerial skills needed in the industrial - Mentorship with BSI leaders/other institutions
world to get greater career opportunities in particular. By 2023, the beneficiaries of BSI Scholarship Talenta
The forms of assistance are: will be 150 students from 11 best universities in
- Tuition assistance of 5 million for 2 semesters Indonesia.
74 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 77
BSI SCHOLARSHIP AFFIRMATION
BSI Scholarship Affirmation is a program to provide The form of assistance is in the form of:
tuition assistance for college education levels ranging - UKT assistance of Rp3,000,000/semester
from Diploma (D3) to Bachelor (S1) or equivalent who - Islamic economic literacy coaching
come from underprivileged families to support the
continuation of quality education. In 2023 BSI Scholarship Affirmation partnered with 2
campuses with a total of 120 student beneficiaries.
BSI’S HOUSE OF TAHFIDZ
BSI Maslahat House of Tahfidz is a scholarship program mission to become a modern Quranic institution
for junior high school graduates with two majors: based on life skills. Therefore, we strive to improve the
Quran and Entrepreneurship. Here, students are not quality of student graduates who can benefit society
only equipped with Quranic and religious education by understanding the Quran, possessing noble morals,
but also leadership and Shariah economic literacy. and having broad academic insights.
BSI Maslahat launched the Semarang House of Tahfidz The House of Tahfidz activities follow a boarding model
located in Sendangmulyo, Tembalang, Semarang City. with activities referring to a structured curriculum with
The Semarang House of Tahfidz can accommodate predefined targets. Additionally, there are also mobile
up to 7 students and is expected to focus on students who conduct Quranic recitation activities with
creating Qur’anic generations with other supporting the surrounding community. Aside from the Quran, the
competencies. House of Tahfidz Program includes several curricula
such as language, leadership, faith understanding,
The House of Tahfidz Wakaf program is an education morals, and transactions, as well as life skills. In the
and training program to produce Quran memorizers Semarang House of Tahfidz Wakaf program, students
(Tahfidz ) with a structured curriculum. This program will live in dormitories with meal facilities, mentoring,
continually provides facilities for prospective donors to lectures, entrepreneurship, and guidance.
contribute to spreading Quran memorization, creating
valuable and sustainable Quran memorization values. Currently, BSI Maslahat has 5 House of Tahfidz with a
Furthermore, this program also serves as a learning total of 48 students located in several cities, including
media for BSI Maslahat in managing and developing Parung, Bogor, Cimahi, Magetan, and Semarang.
wakaf assets. Furthermore, BSI Maslahat also has a Quran Learning
House with a total of 92 students located in Tangerang
The BSI Maslahat House of Tahfidz has a vision and and Cipayung.
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 75
Page 78
Introduction Economic Performance Social Performance Environmental Performance
Social
Performance
SIMPATI UMAT
EMPOWERMENT OF MOSQUES
The Mosque Empowerment Program aims to foster Through Café Masjidku, it is hoped that the Al-Akbar
mosque-based economic empowerment to be self- Mosque, Surabaya, will not only be a place of worship,
sufficient and independent with the potential it but also a place of transactional interaction needed and
holds around the mosque. To support this program, become an attraction for the community to come and
BSI Maslahat and BSI Region Surabaya inaugurated love the mosque. In the future, the mosque’s economic
Café Masjidku and symbolically handed over empowerment program is expected to continue for
economic empowerment assistance amounting to other mosques, which will have an impact on the self-
Rp235,000,000 to the Al-Akbar National Mosque in sufficiency of the mosques.
Surabaya.
DIRECT ASSISTANCE
The direct assistance program is evidence of the Mojokerto. The provision of this assistance is expected
company’s commitment to building a beneficial Islamic to make the community’s worship more comfortable
economy for society, both socially and economically. and increase devotion to Allah Ta’ala. The assistance is
This program is distributed directly from the ZIS planned to be used to build mosque facilities on the
fund through charity activities covering economic, 2nd floor.
educational, preaching, social humanitarian, and health
needs. The handover of assistance for mosque construction
is a tangible manifestation of BSI Maslahat and BSI’s
In 2023, the total number of beneficiaries was 240,668 commitment to supporting the development of Islamic
individuals and 1,019 institutions spread across 33 economic mosques in Indonesia. Mosques, as centers
provinces throughout Indonesia. of worship and religious activities, play a very important
role in fostering faith and strengthening the bonds
BSI Maslahat and BSI Provide Assistance for Mosque of brotherhood among Muslims in various regions.
Development BSI Maslahat’s concern for mosque construction
BSI Maslahat and BSI handed over assistance for the and environmental sustainability is a positive step in
construction of the Mujahiddin Grand Mosque in building a better society.
76 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 79
Realization of Social and Environmental Responsibility (CSR) Fund Disbursement [SEOJK F23]
[SEOJK F25][GRI 413-1][GRI 203-1]
The following is an overview report of the implementation of UPZ BSI distribution, Zakat, Infaq, Waqf, and Social
Funds through BSI Maslahat by program category from January to December 2023, namely:
Source Zakat Infaq Social UPZBSI Waqf Total
Education 1,029,293,000 11,779,715,975 1,026,649,950 29,600,681,903 353,687,616 43,790,028,445
Healthcare 211,090,515 1,668,356,721 552,740,740 2,906,344,768 5,338,532,744
Humanity 4,483,806,567 38,274,894,074 18,506,092,810 12,426,131,512 73,690,924,963
Economic 1,147,348,752 4,170,329,827 - 52,934,790,604 600,731,086 58,853,200,269
Dakwah Advokasi 402,962,762 31,866,503,480 4,355,058,430 1,442,517,600 38,067,042,272
Amil 1,443,140,342 16,758,549,439 1,694,630,779 15,459,934,544 35,356,255,104
Total 8,717,641,938 104,518,349,516 26,135,172,709 114,770,400,932 954,418,702 255,095,983,797
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 77
Page 80
Introduction Economic Performance Social Performance Environmental Performance
ENVIRONMENTAL
04 PERFORMANCE
78 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 81
“In line with maqoshid sharia, BSI is committed to
implementing sustainable finance and banking,
which upholds the principle of balancing economic
growth with environmental preservation to realize
the welfare of humanity.”
COMMITMENTS, TARGETS AND In addition to conducting a series of green campaign
PROGRAM PLANS activities to realize existing initiatives, the Bank has
The implementation of sustainable finance and banking also undertaken various innovations in green actions,
by BSI aims to create synergy between business such as transitioning to clean energy, implementing
growth, goodness, and benefits for the community low-emission production steps, sustainable financing,
and customers, environmental well-being, and the and others.
achievement of Sustainable Development Goals (SDGs).
In its execution, BSI continues to uphold the principles of BUILDING AN ENVIRONMENTALLY
“People & Planet,” signifying that in conducting business FRIENDLY CULTURE THROUGH GREEN
activities, we must always consider environmental CAMPAIGN [SEOJK F1]
sustainability and provide added value for the well-being In pursuit of sustainable finance and banking, the Bank
of the world and the hereafter (rahmatan lil alamin). continually endeavors to cultivate an environmentally
friendly culture that involves all members of the BSI
To achieve this, BSI has initiated its commitment through family and our esteemed customers. To this end, BSI
the adoption of an environmentally friendly culture to consistently conducts a series of green campaigns
create green offices and implement sustainable finance within its headquarters and branch offices across
to support environmentally conscious financing. In its Indonesia. The Green Campaign itself is a Bank initiative
execution, BSI strives to create programs and initiatives aimed at conserving energy consumption and natural
that can have a positive impact on the environment, resources, as well as avoiding the use of plastic bags/
ranging from improving energy and water efficiency, bottles that contribute to non-biodegradable waste,
paper savings and supporting the reduction of thereby promoting an environmentally friendly lifestyle.
greenhouse gas emissions (GHG).
To reach a broader audience, this campaign is also
disseminated through e-flyers as well as on social media
platforms such as Instagram and YouTube. Additionally,
the Bank creates and distributes campaign videos on
sustainable finance in the form of animated videos, with
the objective of educating the public.
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 79
Page 82
Introduction Economic Performance Social Performance Environmental Performance
Environmental
Performance
Key programs in BSI’s Green Campaign include:
Green Campaign BSI Flagship Programs
Energy and Emission Water Waste Nature-Based Solutions
Utilization of new and Improving the efficiency Reducing waste generation Through the nature-based
renewable energy sources of water usage and and the volume of waste solution approach, BSI
and implementation ensuring the quality sent to Landfill through: contributes to biodiversity
of technology that can of waste water in • Utilization of waste paper conservation and climate
improve energy efficiency accordance with the • Digitalization of processes action to support
and control emissions from quality standards to reduce paper usage Indonesia’s Enhanced
BSI operations. stipulated by applicable through e-documents. National Determined
regulations through water • Use of reverse vending Contribution (ENDC)
treatment and water machines for plastic in line with the Paris
recycling. packaging recycling at Agreement.
a number of BSI branch
office.
IN ADVOCACY OF SUSTAINABLE FINANCE, BSI LAUNCHES
THE BSI SUSTAINABLE MOVEMENT
The introduction of the BSI Sustainable Movement Through this innovation, the community can exchange
demonstrates BSI’s commitment to implementing plastic bottles for money. Following that, Indonesian
sustainable finance. Through this program, BSI calls on SMEs can recycle the collected plastic bottles to
every Indonesian citizen to make positive contributions create a variety of products. Through this process,
to environmental preservation and sustainability. we aim to effectively apply the principles of the 3Ps
(People, Planet, Profit) to sustainable finance. Thus,
The BSI Sustainable Movement consists of three main this initiative is carried out to encourage greater
activities: tree planting, sea turtle conservation, and environmental awareness among the public and to
the collection of plastic waste using automatic vending introduce sustainable finance to society.
machines or digital plastic bottle drop machines. In its
implementation, we collaborated with Plasticpay to
install 50 Reverse Vending Machines (RVMs) in Bali and
Greater Jakarta.
80 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 83
BSI Green Campaign Content Performance 2023
No Content Name Link Post Date Post Reach Impressions
1 BSI together with the Indonesian Ministry https://www.instagram.com/ 2023-08-22 49,225 55,951
of SOEs has implemented the Relawan reel/CwPO9aMpm0Y/ 14:15:59
Bakti BUMN Batch IV program in
Meunasah Asan, East Aceh
2 Bank Syariah Indonesia is always committed https://www.instagram.com/ 2023-10-15 25,607 30,157
to preserving the environment. Together reel/CyaUUMtrm9W/ 14:40:54
with @kementerianbumn in the “BUMN
Environmental Movement” held in Lombok
on October 15, 2023.
3 BSI plays a role in sustainability by https://www.instagram.com/ 2023-04-28 25,186 25,875
channeling Rp51.46 trillion in sustainable reel/CrkaFXBOTJz/ 12:56:29
financing and running environmental and
disaster relief programs. In addition, BSI has
distributed Rp173 billion worth of zakat,
the largest in Indonesia, to provide more
value to the community according to asnaf.
4 In commemoration of World Environment https://www.instagram. 2023-07-07 19,075 26,495
Day on June 5, World Land Degradation com/p/CuZT7YexuC0/ 19:04:45
and Drought Management Day on June 17.
5 We are required to always maintain https://www.instagram. 2023-01-27 11,232 11,984
cleanliness in the environment because com/p/Cn5q6Gpva-5/ 09:01:29
cleanliness is part of faith. Allah SWT likes
people who are very concerned about
cleanliness.
6 Videos of plastic waste that are now https://www.instagram.com/ 2023-07-10 10,831 11,754
becoming a problem, especially for reel/CugJS4yuJWX/ 10:51:08
Indonesia’s seas.
7 #GotongRoyongBoyongPohon is a https://www.instagram. 2023-09-29 9,926 12,836
movement initiated by the Ministry of SOEs com/p/CxxTzUJR8_-/ 16:19:36
to address the pollution problem in Jakarta.
8 PT Bank Syariah Indonesia Tbk (BSI) https://www.instagram.com/ 2023-11-09 128,702 197,078
conducted a groundbreaking ceremony for reel/CzbAzCJRu3U/ 17:33:45
the construction of a new office building
called the BSI Tower, which was built with a
green building concept.
9 The topping off celebration of BSI’s Green https://www.instagram.com/ 2023-11-16 60,854 99,229
Building office as the Company’s landmark reel/CzsYXrwrZs6/ 11:26:55
in Aceh which was inaugurated in March
2024.
10 BSI conducts Green Friendly Running 2023 https://www.instagram.com/ 2023-06-17 31,059 32,744
activities to campaign for Zero Waste in reel/CtlQU1yt51q/ 13:54:15
Yogyakarta
11 @ikhsan_kusuma#SobatBUMN, as one https://www.instagram.com/ 2023-08-17 15,690 16,776
of the BUMN employees I am very proud reel/CwCyeUmvpfL/ 18:13:00
and grateful to be able to participate in the
Batch 4 BUMN Relawan Bakti program in
Meunasah Asan East Aceh.
12 Inviting all Jakarta residents to come https://www.instagram. 2023-09-29 15,598 16,951
and adopt 100,000 trees at the com/p/CxxDrtWLX_k/ 13:58:45
#GotongRoyongBoyongPohon Car Free Day
event on Sunday, October 1, 2023 located
at Sarinah Thamrin.
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 81
Page 84
Introduction Economic Performance Social Performance Environmental Performance
Environmental
Performance
No Content Name Link Post Date Post Reach Impressions
13 BSI took part in the https://www.instagram.com/ 2023-10-10 10,949 15,559
#GotongRoyongBoyongPohon reel/CyNIltOxRbM/ 11:44:44
movement which was implemented by @
kementerianbumn Mr. @erickthohir and
also Mr. @tedi.Bharata
14 In the BSI Sustainable Movement program, https://www.instagram. https://www. 107,230 119,990
BSI in collaboration with Plastic Pay would com/p/CyzvJF7x9Eg/ instagram.
like to invite Sahabat to join the activity com/p/
of exchanging your plastic bottle waste at CyzvJF7x9Eg/
RVM.
15 “Accelerating Sharia Economy and Finance https://www.instagram. 2023-10-22 33,075 37,724
Through Digitalization for Inclusive and com/p/CystL3ExJMF/ 17:56:36
Sustainable Growth”, various activities will
be presented at ISEF 2023.
16 Highlights of the BSI Sustainable https://www.instagram.com/ 2023-07-09 11,234 12,219
Movement event held in Bali. reel/CuddYYCttww/ 09:47:29
TOTAL 565,473 723,322
Educational Contents
565,471 total reach
BSI’s green campaign and sustainable finance educational content in Instagram social
media with 723,322 total impressions (image)/play (reels). [SEOJK F1]
ENERGY AND EMISSION
BSI recognizes that energy usage is crucial to its operational activities. Therefore, the Bank consistently endeavors
to implement energy efficiency policies. Throughout 2023, BSI has remained actively engaged in the implementation
of sustainable operations, including:
1. Construction of Aceh landmark building with green building concept.
2. Solar panel usage in the BSI Building, among others, in the Mayestik Branch Office, Pejompongan Sports Ground,
and Mataram Branch Office.
3. Implementation of water treatment in the BSI building/office.
4. The use of LED lamps that have better energy efficiency.
5. Using inverter technology and refrigerant volume in air conditioners
6. Setting the air conditioner as needed
7. Use of environmentally friendly materials such as:
- Recycled plastic on the table top of the office desk at BSI Tower
- MDF board on Custom furniture
- Heat-reducing glass in Landmark Building Aceh
Energy and Emission Consumption
BSI’s internal energy consumption is calculated from electricity purchased from the State Electricity Company (PLN),
which is used for activities at BSI’s head office. In addition to electricity, the source of energy for the Bank’s internal
energy consumption is fuel oil for the bank’s operational vehicles.
82 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 85
BSI’s energy consumption data for the 2023 period as follows:
[GRI 302-1] [GRI 305-1] Total Energy Total Emission
Unit Total Volume Usage
[GRI 305-2] [SEOJK F6] (GJ) (Ton CO2 Eq.)
PLN Electricity for BSI Head Office KWH 2,117,285.90 7,616.14 1,577.07
Head Office Operational Car Fuel Liter 157,329.41 6,027.41 144,94
TOTAL 13,643.55 1,722.01
• The scope of BSI’s energy consumption and direct emission data is the BSI Head Office at Tower Jakarta.
• Using energy conversion factor and Net Calorific Value (NVC) based on the International Energy Agency (IEA)
conversion standards
• For the purposes of conversion calculation, it is assumed that the fuel type of all operational vehicles used is RON
98 gasoline (Pertamax trademark) with a maximum density of 770 kg/m3 based on the Decree of the Director
General of Oil and Gas Number 0177.K/10/DJM.T/2018 concerning Standards and Quality (Specifications) of
Gasoline RON 98 Fuel Oil Marketed Domestically.
• Assuming Pertamax Fuel price of Rp12,800/liter, fuel cost in 2022 was Rp2 billion
• Emission Factor Based on IPCC GHG Protocol Cross Sector Tools (March 2017)
• Global Warming Potential (GWPP) based on IPC GHG Protocol Assessment Report (AR5)
• Using emission factor from the 2019 Electricity System GHG FE Value for Jamali Grid, which is 0.80 ton CO2 eq
per KWH
• The base year used is 2021.
• To this day, there has been no data collection related to energy and emissions related to Scope 3.
Energy Efficiency and Emission Control Programs [SEOJK F7][SEOJK F12][GRI 302-4][GRI 305-5]
To optimize energy efficiency at BSI, we continually strive to initiate initiatives and innovations to control emissions
from the Bank’s operational activities. Throughout 2023, the programs and achievements in energy efficiency
implemented are as follows:
Use of Environmentally Friendly Materials
2
The Lamps Friendly Refrigerant The Air Conditioning
100% R32
System
Branch Offices
100%
1 Sport Ground
The lamps used throughout
all BSI’s offices are LED
lamps [SEOJK F5]
An environmentally
friendly refrigerant that is
used in all air conditioning
The air conditioning system
in BSI’s offices has used
inverter technology and
BSI has used solar panels systems in BSI offices. volume refrigerant that
to help meet the energy The R32 has a value of “0” can save up to 50% of
needs of the branch offices ozone depletion potential, electricity. In addition, the
in addition to the source of with a cold index reaching room temperature settings
electricity from PLN. almost 2 times better than at the BSI head office and
other refrigerants. branch office have also
[SEOJK F5] considered energy efficiency
optimization.
Notes:
As of the end of the reporting year, BSI was still in the process of quantifying the results of energy efficiency, so reporting for total
energy efficiency and emissions will be reported in future reports after this process is completed. [GRI 302-4]
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 83
Page 86
Introduction Economic Performance Social Performance Environmental Performance
Environmental
Performance
WATER
Water management is also a policy of utmost importance at BSI. Water is one of the most critical natural resources for
the sustainability of life. In carrying out operational activities, the Bank uses water to meet domestic needs in branch
offices and BSI data centers. The Bank is committed to ensuring water balance sustainability through sustainable
water management approaches.
BSI Water Management Principles & Goals [GRI 303-1]
Reduce Increase Ensure
Reducing raw water withdrawal from Improving water recirculation through Ensuring the quality of wastewater
public water bodies, and not overusing the water recycling process and that is channeled to the Waste Water
groundwater as much as possible. ensuring that all of our operational Management Plant (WWTP) meets the
facilities have a Water Treatment quality standards in accordance with
Plant so that water that undergoes applicable regulations. [GRI 303-2]
the treatment process can be reused,
among others, for flushing toilets and
watering plants.
Notes:
As of the end of the reporting year, BSI has not conducted a formal assessment regarding water stress and water impact to develop impacts and
targets for water use. Nevertheless, all of BSI’s operational areas continue to accelerate water efficiency and conservation efforts as part of the
Bank’s operational activities.
Throughout 2023, the BSI Head Office used 1,824m3 of water, all supplied by the PDAM. To ensure effective water
management policies, we also conducted water-saving campaigns in Bank operational areas, including through
posters placed in toilet areas, ablution areas, and handwashing stations to encourage moderate water usage. [SEOJK
F.8] [GRI 303-3]
Furthermore, water efficiency efforts are made through the use of water treatment in BSI office buildings and
recycling used building water for toilet flushing in new buildings. Water efficiency initiatives are also applied at the
BSI Cipali Mosque, where used ablution water is used to irrigate plants around the mosque.
84 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 87
Features of Green Building at BSI Head Office
Located on Jalan Gatot Subroto, DKI Jakarta, the BSI Head Office at The Tower is the work of one of the world’s leading
architectural firms, Denton Corker Marshall. Built by Indonesia’s renowned architectural figure, Budiman Hendropurnomo
as head architect, The Tower reaches 212 meters in height with a floor area of 100,931 gross m2.
The Tower is designed as a building that has various environmentally friendly features that are in accordance with green
building principles, including:
01 02 03 04 05
Maximizing Using double Having rainwater Having Cooled Having cooler system
natural lighting insulated windows catchment system Chiller with FCU with a separate air
ventilation
with the building to increase the energy able to reduce raw Function for air to ensure healthier
façade using glass, so efficiency of the air water or groundwater conditioning indoor air quality.
that the sunlight can conditioner used and extraction. system, so that the
illuminate the room also functions as a temperature and
and reduce the need sound barrier from humidity in each
to use lights. the outside thereby section can be
increasing the comfort adjusted as needed
of BSI employees to with consideration of
work. energy efficiency.
WASTE
BSI’s commitment to implementing sustainable operations is also carried out through waste management. The
largest waste generated from Bank operational activities can be categorized into several types, namely paper waste,
packaging waste, food waste, and hazardous waste (B3). BSI’s waste management approach follows the best practice
of reduce, reuse, and recycle (3R), aiming to minimize the volume of waste sent to landfills. [SEOJK F14]
Reduce
Reuse Recycle
Garbage
RESIDUE
Transport
Landfill
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 85
Page 88
Introduction Economic Performance Social Performance Environmental Performance
Environmental
Performance
Paper Waste [SEOJK F13] [GRI 306-1]
BSI considers paper saving efforts as one of its focus and priority sustainable policies. This is because paper waste
is the largest type of waste generated from Bank operational activities. Activities such as report preparation, bank
correspondence with customers, and banking transaction processes are the largest sources of paper waste in BSI.
Efficient approach for saving paper conducted consistently and continuously, among others:
1. Double sided printing and the use of blank waste paper (duplex printing).
2. Digitization request for printed goods through online applications and the procurement process is carried out
digitally through the Procurement Management System.
3. Implementation of E-DOC BSI, namely a web-based correspondence digitization to reduce paper usage at the
head office.
Continuing from the paper-saving policy, the implementation of the Reuse, Reduce, and Recycle (3R) principles is
included in utilizing residual materials to form new products and reduce solid waste. Management of paper waste is
implemented through the use of recycled paper in the printing of Annual Reports and Sustainability Reports.
In 2023, BSI’s paper usage reached 7,836 reams, a decrease compared to the paper usage in 2022, which reached
6,657 reams. This is due to the increase in the number of BSI customers. Moving forward, we will continue to
strive for paper usage efficiency through digitization and identify and calculate the intensity of paper usage in Bank
operations. [GRI 306-3]
Plastic Waste [SEOJK F13]
Another major source of waste is plastic packaging waste and food remnants from employee pantry facilities.
Generally, the types of waste generated from BSI employee pantries are plastic packaging, food scraps, seasoning
sachets, and plastic utensils. As a step towards reducing plastic waste, BSI encourages the use of reusable plastic
drink bottles in the office environment, both for employees and for various meeting needs.
Since 2021, BSI has collaborated with PlasticPay to install plastic waste recycling machines in public areas, starting
at BSI office locations. In the first implementation phase, Reverse Vending Machine (RVM) waste recycling machines
have been placed in the BSI Wisma Mandiri 1 building and several areas in the Greater Jakarta area.
In essence, this collaborative program aims to educate the public to be more concerned and take active steps in
plastic waste management. Through RVMs, the community is encouraged to start sorting and processing plastic
waste properly, so that it can be processed into high-value economic goods, not burden landfills, and not pollute the
environment.
The types of plastic waste that can be brought and exchanged through RVM machines and the PlasticPay digital
platform are plastic bottle waste. Through PlasticPay’s digital platform, BSI ensures that this program can be well
measured and monitored.
86 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 89
Easy Steps to Reduce Plastic Waste
The people who want to participate in reducing plastic can easily redeem their plastic waste to
the RVM machine in 3 easy steps:
Bring used plastic drink bottle to the nearest PlasticPay Collection
01 Point,
Put it into the RVM machine and scan the barcode,
02
Collect points, which can then be exchanged for merchandise from BSI and
Plasticpay Indonesia, where 1 point is equal to Rp1. One bottle of 600 ml is
03
equivalent to 56 points, or Rp56; 1 kg is equivalent to 2,968 points, or Rp3,000.
In 2023, BSI’s collaboration with PlasticPay have successfully placed Reverse Vending Machine (RVM)
& PlasticPay Collection Point at [GRI 306-2] [GRI 306-4]
50 locations 22.9 Kg 84.4 Ton CO eq 2
in Jabodetabek reduction of and help
and Bali bottle plastic contribute of
waste reaching carbon footprint
reduction by
Office Hazardous Waste [SEOJK F13]
Another category of waste generated from BSI’s operations is B3 in the form of electronic waste, used printer ink
cartridges, used batteries, and used fluorescent lamps. BSI’s efforts in managing this waste include ensuring no B3
spills and disposing of hazardous materials that can pollute the environment, such as used vehicle oil, used ink, or
floor cleaning chemicals. The Bank also implements a zero-stock program for office stationery so that procurement
can be based on actual needs. Additionally, we also document the types of waste that do not contain hazardous
materials.
Throughout 2023, there were no significant B3 waste or common waste spills in the BSI workplace. [SEOJK F15]
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 87
Page 90
Introduction Economic Performance Social Performance Environmental Performance
Environmental
Performance
NATURE-BASED SOLUTIONS
As the largest Islamic bank in Indonesia, BSI is committed to supporting Indonesia’s efforts to achieve the Enhanced
National Determined Contribution (ENDC) target in line with the Paris Agreement. One of the efforts we make is
by implementing nature-based solutions. Nature-based solutions involve actions to protect, sustainably manage,
or restore natural ecosystems, in order to contribute to climate change prevention, human health, food and water
security, and effective and adaptive disaster risk reduction, while also providing benefits for community welfare and
biodiversity conservation.
Although BSI does not have operational offices nearby or within conservation areas, conservation programs for
natural habitats and biodiversity continue to be carried out through tree planting activities in Bank operational areas,
especially planting trees with high carbon sequestration potential. In 2023, BSI planted trees in various location in
Indonesia. [SEOJK F9][SEOJK F10] [GRI 304-3]
Total Tree Planting
2022 2023
33,500 39,329
at various BSI Mosques in total tree planting conducted
Bakauheni, Bromo, Lebak until 2023 in various locations
Banten, Katulampa Bogor,
and Badung Bali
ENVIRONMENTAL COMPLAINTS
For BSI, the measure of Bank success must align with the maqoshid syariah (Islamic objectives), which consists
of Hifdz Diin (safeguarding religion), Hifdz Nafs (safeguarding life), Hifdz Aql (safeguarding intellect), Hifdz Maal
(safeguarding wealth), Hifdz Nasb (safeguarding lineage), and Hifdz Bi’ah (safeguarding environment). This is also in
line with sustainable finance principles.
In practice, the assessment and evaluation of the environmental performance of all BSI debtors is an integral part of
the Bank’s business process. Throughout 2023, our evaluation of all BSI debtors showed no complaints or significant
environmental violations. [SEOJK F16]
88 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 91
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 89
Page 92
Independent
Assuror Statement
Independent Assurance Statement
0224/BD/0021/JK
To the management of PT Bank Syariah Indonesia, Tbk
We were engaged by PT Bank Syariah Indonesia, Tbk 2) Assessment of the accuracy and quality of the
(‘BSI’) to provide assurance in respect to its specified sustainability performance information
Sustainability Report 2023 (‘the Report’). The assurance contained within the Report, in relation to the
engagement was carried out by our highly experienced agreed scope, which consisted of:
assurance team whose diverse and complementary Sustainable finance management;
skills ensure a high level of competence in carrying out Human resources training and development; and
their duties. Community development.
Independence Responsibility
We conducted all our assurance undertakings with BSI is responsible for the preparation of the Report
independence and autonomy having not been involved and all information and claims therein, which include
in the preparation of any key part of the Report. Nor established sustainability management targets,
did we provide any services to BSI during 2023 that performance management, data collection, etc. In
could conflict with the independence of the assurance performing this engagement, meanwhile, our
engagement. responsibility to the management of BSI is solely for
the purpose of verifying the statements it has made in
Assurance Standards relation to its sustainability performance, specifically
Our work was carried out in accordance with ISAE3000 as described in the agreed scope, and expressing our
‘Assurance Engagements other than Audits or Reviews opinion on the conclusions reached.
of Historical Financial Information’ issued by the
International Auditing and Accounting Standards Board. Methodology
In addition, the work was also planned and carried out In order to assess the veracity of certain assertions and
to conform to AA1000AS v3 ‘AA1000 Assurance specified data sets included within the report, as well
Standards v3’, issued by AccountAbility. as the systems and processes used to manage and
report them, the following methods were employed
Level of assurance and criteria used during the engagement process:
By designing our evidence-gathering procedures to Review of the report, internal policies,
obtain a limited level of assurance based on ISAE3000 documentation, management and information
and a moderate level of assurance engagement as set systems;
out in AA1000AS v3 readers of the report can be Interviews of relevant staff involved in
confident that all risks or errors have been reduced to a sustainability-related management and reporting;
very low level, although not necessarily to zero. and
Moreover, the Report was also evaluated in accordance Following data trails to the initial aggregated
with the criteria of AA1000 AccountAbility Principles source, so as to check data samples to a greater
(2018) of Inclusivity, Materiality, Responsiveness and depth.
Impact.
Limitations
Scope of Assurance Our scope of work was limited to a review of the
We provided a Type 2 assurance engagement under accuracy and reliability of specified data and
AA1000AS v3. This involved: interviews with data providers, persons in charge of
1) Assessment of BSI’s adherence to the AA1000 data collection and processing, as well as persons in
AccountAbility Principles (2018); and charge of sustainability performance-related
information.
PT. Moores Rowland Indonesia
Jl. Sisingamangaraja No. 26 – Jakarta Selatan 12120 - Indonesia
Tel: +62 21 720 2605 - Fax: +62 21 720 2606 - www.moores-rowland.com
90 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 93
Conclusions BSI's allocation of resources to stakeholder
Conclusions in regard to adherence to the AA1000 engagement, the timeliness and accessibility of
Accountability Principles of Inclusivity, Materiality, reported information, and the types of
Responsiveness and Impact include the following communication mechanisms regularly employed,
findings: were all indicative of BSI’s responsiveness to key
stakeholder concerns and expectations. As in other
Inclusivity areas, however, vigilance is of key importance, and
An assessment was made on whether BSI has we recommend that BSI conducts regular
included all key stakeholders in developing and monitoring while improving stakeholder
achieving an accountable and strategic response to engagement procedures where necessary in future
sustainability issues. reports.
Demonstration of BSI’s strong commitment to Impact
stakeholder inclusivity included the conducting of An assessment was made on whether BSI has
needs assessment surveys and a materiality level monitored, measured and is accountable for how its
survey of the key stakeholder groups. Our overall actions affect their broader ecosystems.
assessment is that BSI has set in place an effective BSI has integrated identified impacts into its key
system that enables key stakeholders to participate management processes including, for example, its
in the development of the organization's response materiality assessment process, organisational
in the context of sustainability. strategy, governance, goal-setting, and operations.
In order to maintain and strengthen the In order to strengthen the effectiveness of
effectiveness of this inclusivity, however, we assessment and disclosure of its impacts, however,
recommend that BSI carries out regular monitoring we recommend that BSI provides the necessary
of its systems and procedures, and implements competencies and resources to measure, evaluate
improvements where necessary. and manage its impacts, conducts regular
monitoring of its systems and procedures, and
Materiality implements improvements, where necessary.
With stakeholders requiring material information
on which to base their informed judgments, Based on our limited assurance engagement, nothing
decisions and actions, an assessment was carried has come to our attention that causes us to believe the
out to determine the extent to which BSI has data of the Report has been materially misstated.
included such information in the Report.
All key assurance findings are included herein, while
BSI’s strong commitment to meet stakeholder detailed observations and follow-up recommendations
needs in this field was evidenced by the provision have been submitted to BSI management in a separate
of adequately reported and balanced information report.
on key material issues. Nevertheless, as demands Jakarta, March 25, 2024
for information continue to increase, we
recommend that BSI conducts materiality tests on a
regular basis for inclusion in future reports.
Responsiveness James Kallman
As it is increasingly important to communicate in Chief Executive Officer
Moores Rowland is an international organization specializing in audit,
meeting stakeholder expectations, an assessment accounting, tax, legal and advisory, business and human rights services in
was carried out to determine the degree to which Indonesia. Moores Rowland is a member of Praxity AISBL, the world's largest
Alliance of independent and unaffiliated audit and consultancy companies.
BSI demonstrates its accountability in this area. With more than 65,000 professionals operating in 120 countries across the
globe, each sharing the same values and sense of responsibility, Praxity is
served by Moores Rowland in Indonesia, one of the leading sustainability
assurance providers.
PT. Moores Rowland Indonesia
Jl. Sisingamangaraja No. 26 – Jakarta Selatan 12120 - Indonesia
Tel: +62 21 720 2605 - Fax: +62 21 720 2606 - www.moores-rowland.com
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 91
Page 94
List of Disclosure Based on
POJK No.51/Pojk.03/2017
Index
Index Name Page (s)
Number
Sustainability Strategy -
A.1 Explanation of Sustainability Strategy 2
Performance Overview on Sustainability Aspects
B.1 Economic Aspects 6
B.2 Environmental Aspects 6
B.3 Social Aspects 7
Company Profile
C.1 Vision, Mission and Values of Sustainability 17
C.2 Company Address 12
C.3 Business Scale 13, 18
C.4 Products, Services, and Business Activity 12
C.5 Membership of Association 19
C.6 Significant Changes 12
Board of Director Statement
D.1 Board of Director Statement 22
Sustainability Governance
E.1 Responsible Party related to Sustainable Finance Implementation 26
E.2 Competency Development related to Sustainable Finance 32
E.3 Risk Assessment for the Application of Sustainable Finance 32
E.4 Stakeholder Engagement 36
E.5 Problems Encountered on Sustainable Finance 35
Sustainability Performance
F.1 Building a Sustainability Culture 3, 17, 79, 82
Economic Performance
Comparison of Targets and Production Performance, Portfolio, Financing Targets, or Investments,
F.2 43
Income as Well as Profit and Loss
Comparison of Target and Portfolio Performance, Financing Targets, or Investments in Financial
F.3 44
Instruments or Projects That are in Line with the Implementation of Sustainable Finance
Environmental Performance
General Aspects
Material Aspects
F.4 Environmental Costs
F.5 Usage of Environmentally Friendly Materials 83
Energy Aspects
F.6 Amount and Intensity of Energy Consumed 83
F.7 Efforts and Achievement for Energy Efficiency and Renewable Energy Usage 83
Water Aspects
F.8 Water Usage 84
Biodiversity Aspects
F.9 Impacts from Operational Areas that are Near or Located in Conservation Areas or Have Biodiversity 88
F.10 Biodiversity Conservation Efforts 88
92 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 95
Index
Index Name Page (s)
Number
Emission Aspects
F.11 Amount and Intensity of Emissions Generated by Type 83
F.12 Efforts and Achievements Made for Emission Reduction 83
Waste and Effluent Aspects
F.13 Amount of Waste and Effluent Generated by Type 86
F.14 Waste and Effluent Management Mechanism 85
F.15 Occurring Spills (if any) 87
Complaints Related to the Environment Aspects
F.16 Amount and Material of Environmental Complaints Received and Resolved 88
Social Performance
F.17 Commitment to Provide Services on Equal Products and/or Services to Consumers 49
Employment Aspects
F.18 Equal Employment Opportunities 49, 57, 59
F.19 Child Labor And Forced Labor 57, 59
F.20 Regional Minimum Wage 62
F.21 A Decent and Safe Work Environment 68
F.22 Training and Development of Employee Skills 64
Community Aspects
F.23 Operations Impacts on Surrounding Communities 70
F.24 Community Complaints 51
F.25 Corporate Social Responsibility (CSR) Activities 70, 71, 77
Responsibility for Sustainable Product/Service Development
F.26 Innovation and Development of Sustainable Finance Products/Services 48
F.27 Products and Services that the Safety have been Evaluated for Customers 49
F.28 Products/Services Impacts 49
F.29 The Number of Products Withdrawn 49
F.30 Customer Satisfaction Survey of Sustainable Finance Products and/or Services 51
Others
G.1 Written Verification from Independent Parties (if any) 90
G.2 Feedback Form 11
G.3 Responses to Previous Year's Sustainability Report Feedback 11
List of Disclosures According to Financial Services Authority Regulation Number 51/POJK.03/2017
G.4 concerning Implementation of Sustainable Finance for Financial Services Institutions, Issuers, and Public 92
Companies
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 93
Page 96
GRI
Content Index
Statement of use PT Bank Syariah Indonesia Tbk has reported the information cited in this GRI content index for
the period 01 January – 31 December 2023 with reference to the GRI Standards.
GRI 1 used GRI 1: Foundation 2021
GRI STANDARD DISCLOSURE LOCATION
GRI 2: General Disclosures 2021 2-1 Organizational details 12
2-2 Entities included in the organization’s sustainability reporting 9
2-3 Reporting period, frequency and contact point. 8, 11
2-4 Restatements of information 9
2-5 External assurance 9
2-6 Activities, value chain and other business relationships 12, 13
2-7 Employees 57
2-8 Workers who are not employees 59
2-9 Governance structure and composition 30, 39
2-10 Nomination and selection of the highest governance body 39
2-11 Chair of the highest governance body 30
2-12 Role of the highest governance body in overseeing the 31
management of impacts.
2-13 Delegation of responsibility for managing impacts 31
2-14 Role of the highest governance body in sustainability reporting 26, 31
2-15 Conflicts of interest Annual Report BSI
2-16 Communication of critical concerns 39
2-17 Collective knowledge of the highest governance body 32
2-18 Evaluation of the performance of the highest governance body. Annual Report BSI
2-19 Remuneration policies 39
2-20 Process to determine remuneration 39
2-21 Annual total compensation ratio. 39
2-22 Statement on sustainable development strategy 22
2-23 Policy commitments 3
2-24 Embedding policy commitments. 3
2-25 Processes to remediate negative impacts 49
2-26 Mechanisms for seeking advice and raising concerns. 20, 39
2-27 Compliance with laws and regulations Annual Report BSI
2-28 Membership associations 19
2-29 Approach to stakeholder engagement 36
2-30 Collective bargaining agreements 61
GRI 3: Material Topics 2021 3-1 Process to determine material topics 10
3-2 List of material topics 10
3-3 Management of material topics 10, 41, 44
GRI 201: Economic Performance 201-1 Direct economic value generated and distributed 42
2016 201-2 Financial implications and other risks and opportunities due to 44
climate change
201-3 Defined benefit plan obligations and other retirement plans 62
GRI 203: Indirect Economic Impacts 203-1 Infrastructure investments and services supported 77
2016
94 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 97
GRI STANDARD DISCLOSURE LOCATION
GRI 204: Procurement Practices 204-1 Proportion of spending on local suppliers 20
2016
GRI 205: Anti-corruption 2016 205-1 Operations assessed for risks related to corruption 35
205-2 Communication and training about anti-corruption policies and 35
procedures
GRI 302: Energy 2016 302-1 Energy Consumption Within the Organization 83
302-4 Reduction of energy consumption 83
GRI 303: Water and Effluents 2018 303-1 Interactions With Water As A Shared Resource 84
303-2 Management of Water Discharge-Related Impacts 84
303-3 Water Withdrawal 84
GRI 304: Biodiversity 2016 304-3 Habitats protected or restored 88
GRI 305: Emissions 2016 305-1 Direct (Scope1) GHG Emissions 83
305-2 Energy indirect (Scope 2) GHG emissions 83
305-5 Reduction of GHG emissions 83
GRI 306: Waste 2020 306-1 Waste generation and significant waste-related impacts 86
306-2 Management of significant waste-related impacts 87
306-3 Timbulan Limbah | Waste generated 86
306-4 Waste diverted from disposal 87
GRI 401: Employment 2016 401-1 New employee hires and employee turnover 60, 61
401-2 Benefits provided to full-time employees that are not provided to 62
temporary or part-time employees
GRI 402: Labor/Management 402-1 Minimum notice periods regarding operational changes 61
Relations 2016
GRI 403: Occupational Health and 403-1 Occupational health and safety management system 68
Safety 2018 403-3 Occupational health services 68
403-4 Worker participation, consultation, and communication on 69
occupational health and safety
403-5 Worker training on occupational health and safety 69
403-6 Promotion of worker health 68, 69
403-7 Prevention and mitigation of occupational health and safety 68
impacts directly linked by business relationships
403-9 Work-related injuries 69
GRI 404: Training and Education 404-1 Average hours of training per year per employee 65
2016 404-2 Programs for upgrading employee skills and transition assistance 64
programs
404-3 Percentage of employees receiving regular performance and 65
career development reviews
GRI 405: Diversity and Equal 405-1 Diversity of governance bodies and employees 31, 57
Opportunity 2016
405-2 Ratio of basic salary and remuneration of women to men 58
GRI 408: Child Labor 2016 408-1 Operations and suppliers at significant risk for incidents of child 59
labor
GRI 409: Forced or Compulsory 409-1 Operations and suppliers at significant risk for incidents of forced 59
Labor 2016 or compulsory labor
GRI 413: Local Communities 2016 413-1 Operations with local community engagement, impact 70, 71, 77
assessments, and development programs
GRI 417: Marketing and Labeling 417-1 Requirements for product and service information and labeling 49
2016 417-2 Incidents of non-compliance concerning product and service 49
information and labeling
417-3 Incidents of non-compliance concerning marketing 49
communications
GRI 418: Customer Privacy 2016 418-1 Substantiated complaints concerning breaches of customer 50, 51
privacy and losses of customer data
2023 SUSTAINABILITY REPORT PT BANK SYARIAH INDONESIA Tbk 95
Page 98
Feedback
Form
PT Bank Syariah Indonesia Tbk (BSI) has published a Sustainability Report to provide sustainability performance and sustainable
finance implementation. Upon reading this Sustainability Report, we look forward to your input, criticism and suggestions by
sending an email or by sending this form by mail.
YOUR PROFILE
Name (if possible) : ........................................................................................................................................................................................
Institution/Company : ........................................................................................................................................................................................
E-mail : ........................................................................................................................................................................................
Phone/Mobile : ........................................................................................................................................................................................
STAKEHOLDER GROUP
Shareholders and investors
Customers
Employees
Government
Media
Business partners
Public and the community
Others, please specify:
..........................................................................
PLEASE SELECT THE APPROPRIATE ANSWERS IN RESPONSE TO THE QUESTIONS BELOW.
YES NO
1. This report is easily understood.
2. This report is useful for you.
3. This report portrays the sustainability performance clearly.
4. This report discloses the material topics which are relevant to the Company.
THANK YOU FOR YOUR PARTICIPATION.
PLEASE SUBMIT AND SEND THIS RESPONSE TO THE FOLLOWING ADDRESS:
Corporate Secretary
PT Bank Syariah Indonesia Tbk (BSI)
Head Office
Gedung The Tower
Jl. Gatot Subroto No. 27
Kelurahan Karet Semanggi,
Kecamatan Setiabudi,
Jakarta Selatan 12930
96 PT BANK SYARIAH INDONESIA Tbk 2023 SUSTAINABILITY REPORT
Page 99
Page 100
SUSTA I NA B IL I T Y
R E P O RT 2023
G ROW I N G W I T H
S U S TA I N A B L E M OV E M E N T
Scan the following QR Code
to download this
Sustainability Report
www.bankbsi.co.id
BSI Call 14040
Head Office
Gedung The Tower
Jl. Gatot Subroto No. 27
Kelurahan Karet Semanggi,
Kecamatan Setiabudi,
Jakarta Selatan 12930
Names mentioned 36 people and organisations named in the text · linked when the evidence is strong
unresolved
org
Financial Services Authority
p.5 ×23
unresolved
org
Bank Rank
p.6
unresolved
org
Bank Category
p.9
unresolved
org
Kementerian BUMN
p.9
unresolved
person
Gunawan Arif Hartoyo
p.9
unresolved
org
Bank Category Sustainability Category
p.9
unresolved
org
Bank Syariah Indonesia Bank Syariah Indonesia Call Center
p.13
unresolved
org
Bank Indonesia
p.15 ×9
unresolved
org
Bank Indonesia Governor
p.15 ×2
unresolved
org
BRI Syariah Tbk
p.16 ×2
unresolved
org
PT Bank Syariah
p.16 ×3
unresolved
org
PT BNI Syariah
p.16
unresolved
org
Indonesia Tbk.
p.16
unresolved
org
Bank BSI
p.26
unresolved
org
Bank Indonesia Regulation
p.31 ×5
unresolved
org
Bank Human Resource
p.44
unresolved
org
Ministry of Communications and Information Technology
p.52
unresolved
org
Bank Indonesia Consumer Protection. In
p.54
unresolved
org
Bank Indonesia Consumer Protection. Social Media
p.54
unresolved
org
PT Bank Syariah Indonesia’s Internal Control System Policy
p.55
unresolved
org
Bank Trade Unions.
p.69
unresolved
org
Bank Syariah Indonesia Company Regulations
p.70
unresolved
org
PT Superintending
p.76
unresolved
org
PT Perkebunan Nusantara III
p.76
unresolved
org
PT Danareksa. BSI Maslahat Holds Shariah Economic Literacy
p.76
unresolved
org
Ministry of SOEs
p.83
unresolved
org
PT. Moores Rowland Indonesia
p.92 ×2
Extraction attempts how the parser did, and what it refused
Nothing structured was extracted from this document — the attempts below say why.
No extraction attempted yet.