So, there’s this thing happening with PT Bank Syariah Indonesia Tbk (BSI), where they’re aiming to open a branch in Saudi Arabia next year. The Acting CEO of BSI, Bob Tyasika Ananta, spilled the beans that they’ve already got the green light to set up shop in Saudi Arabia. Bob spilled the beans during a press conference with the Minister of SOEs, Erick Thohir, at the Ministry of SOEs in Jakarta on Monday (5/5/2025). But hey, it’s not all smooth sailing for BSI, they gotta jump through a few hoops before they can start operating in Saudi Arabia. Bob mentioned that the Saudi Arabian regulators will be looking into all the requirements related to the operational readiness of BSI’s branch in Saudi Arabia. “There are a few things that need to be prepared beforehand, besides the building, there’s IT, human resources, and SOP. If the SOP is not an issue, but when it comes to IT, building, and HR, it’s a work in progress,” Bob added.
Bob is confident that BSI will be able to meet all the government requirements set by Saudi Arabia. Bob mentioned that the approval process for foreign banks to operate in Saudi Arabia usually takes around two years. “Looking at the reference, since getting the green light and starting operations, banks from neighboring countries also took almost two years. But we’ll try to make it happen within a year from now,” Bob continued. Opening a branch in Saudi Arabia is in line with the company’s vision to become one of the top 10 largest Islamic banks globally to tap into the global market. Bob mentioned that the Saudi Arabian branch will be BSI’s second branch after the Dubai branch in the United Arab Emirates (UAE). “For the global market there, we will focus on the ecosystem of Hajj and Umrah,” Bob said.
Bob also mentioned that the number of Hajj pilgrims is recorded at 1.2 million people this year and is predicted to increase to two million people in the next two to three years. Additionally, Minister of SOEs Erick Thohir is pushing for BSI’s branch to enhance the potential for trade cooperation with Saudi Arabia. “The Minister (of SOEs) said we will also create opportunities for trade between Indonesia and Saudi Arabia,” Bob said. Not really sure why this matters, but hey, I guess it’s a big deal for BSI. So, let’s see how this all plays out in the end. Just hoping for the best for BSI and their plans in Saudi Arabia. Can’t wait to see what the future holds for them.
