Best Islamic bank: Bank Syariah Indonesia
Bank Syariah Indonesia stands out as the best Islamic bank in Indonesia on the back of a well-executed strategy that combines scale, innovation and deep integration into the real economy.
The bank has moved beyond traditional growth by actively shaping the Islamic finance ecosystem through market creation across asset classes, capital markets and digital channels. Its positioning as the largest Islamic bank in the country, with growing global relevance, reflects strong financial performance and structural capability building.
Financially, the bank demonstrates consistent growth and resilience. Shariah-compliant revenue expanded to IDR25.28 trillion by end-2025, while net profit increased to IDR7.56 trillion, supported by disciplined risk management and asset quality maintained below industry averages. Financing growth remains broad-based, surpassing IDR300 trillion, with a strong focus on embedding Islamic finance into productive sectors, particularly small and medium-sized enterprises (SMEs) and retail segments.
A key differentiator is its role in developing new Islamic financial infrastructure. The introduction of bullion banking has positioned the bank at the forefront of commodity-based Islamic finance, while continued expansion in sukuk origination and distribution strengthens domestic capital markets and diversifies funding avenues for corporates.
Digital transformation is another core strength. With more than 5.5 million users on its platform and over 90% of retail transactions conducted digitally, the bank has successfully scaled access to Islamic financial services nationwide, enhancing customer experience and operational efficiency.
Across retail, corporate, SME and wealth segments, Bank Syariah Indonesia demonstrates a comprehensive, integrated model that positions Islamic banking as a mainstream financial system rather than a niche alternative.
Best Islamic bank for ESG: Bank Syariah Indonesia
Bank Syariah Indonesia (BSI) has consolidated its position as Indonesia’s leading Islamic bank for environmental, social and governance (ESG), with its sustainability sukuk programme as a centrepiece of this achievement.
After its inception in 2024, the programme continued in 2025 with a Phase II issuance of IDR5 trillion, oversubscribed 4.4 times. Both the 2024 and 2025 instruments are open to retail investors from IDR5 million per unit and allocate proceeds 30% to 50% to environmental financing and 50% to 70% to social financing. The framework carries a ‘green/sustainable’ opinion from the Sustainable Development Goals (SDGs) Hub at the University of Indonesia.
The broader sustainable financing portfolio reached IDR73.9 trillion by end-2025 – 23% of the total book – up from IDR66.49 trillion a year earlier. Social financing grew 11% year-on-year to IDR58.3 trillion; green financing rose 11% to IDR15.6 trillion, covering renewable energy, sustainable land use, green transportation and eco-efficient buildings. Under local regulation, BSI’s Sustainable Finance Action Plan achieved a 102% completion rate across 12 main initiatives during the period.
BSI became the first Shariah bank in Indonesia to implement a fully automated digital carbon-tracking platform, independently verified by third party Jejakin, covering Scope 1 and Scope 2 emissions across all operational locations. Climate-risk stress testing now covers 100% of the financing portfolio, up from 51.63% in 2024.
In Indonesia, achievements include BSI Tower’s green building certification received during the review period, and the 15,000 trees planted through BSI’s 1 Home 1 Tree programme, which links tree planting to the bank’s mortgage product.
Its Islamic identity shapes how it approaches the social dimension of ESG. Working with the United Nations Development Programme (UNDP) and the National Zakat Agency (BAZNAZ), BSI launched a Green Zakat Framework, directing zakat funds to environmental programmes, with pilots at Sanane Island, Makassar and Bantar Gebang, Bekasi. Total ZISWAF – covering zakat, infaq, sadaqah and waqf – distribution reached IDR400 billion in 2025, up 30.72% year-on-year, of which IDR250 billion was distributed as corporate zakat through the National Zakat Agency.
Mandatory ESG training reached 16,166 employees in 2025, exceeding a 90% awareness target, with coverage extended to the full board of directors, board of commissioners and Shariah supervisory board.
On the regulatory front, BSI leads the ESG working group at Asbisindo, Indonesia’s Islamic banks association, and is both a signatory to the UN Principles for Responsible Banking and a member of the United Nations Environment Programme Finance Initiative (UNEP FI).
Best Islamic project finance house: UUS SMI
PT Sarana Multi Infrastruktur (Persero)’s Sharia Business Unit (UUS SMI) demonstrates a compelling case for best Islamic project finance house in Indonesia in 2025 through its strong growth trajectory, diversified project portfolio and leadership in structuring complex, high-impact infrastructure transactions.
The business has delivered sustained and measurable expansion, with rapid growth in financing commitments, assets and revenue over recent years, alongside a significant increase in total Shariah financing in 2025. This performance has been achieved while maintaining strong asset quality, reflecting disciplined risk management and the ability to scale responsibly in a challenging macroeconomic environment.
The platform now supports a broad range of infrastructure sectors, including transport, energy, telecommunications and social infrastructure, reinforcing its core role in national development.
The bank stands out for its consistent execution of landmark project finance transactions. These include flagship public-private partnerships such as Patimban Port, strategic energy and logistics financing for Pertamina Group, and sustainable infrastructure projects including waste management and power generation. The deals demonstrate strong structuring capability across Islamic instruments such as musharakah and ijarah-based financing, as well as the ability to work with multi-national sponsors and government-linked entities.
Equally important is its role in expanding the Islamic project finance ecosystem in Indonesia. By supporting new borrower segments – including public service agencies and state-linked institutions – and aligning financing with evolving regulatory frameworks, the bank has opened new avenues for Shariah-compliant infrastructure funding.
Best sukuk deal: CIMB
Pegadaian IDR1.8 trillion sukuk mudharabah
In May 2025, CIMB Niaga Sekuritas acted as joint lead underwriter for Pegadaian’s IDR1.752 trillion sukuk mudharabah issuance. The sukuk was issued in one-year and three-year tranches, maturing in 2026 and 2028, and listed on the Indonesia Stock Exchange on June 2, 2025, confirming solid access to the domestic Islamic capital market.
CIMB also acted as joint lead underwriter for concurrent issuances of conventional bonds and social bonds by Pegadaian, demonstrating the bank’s ability to tap multiple investor pools. CIMB’s portion of the sukuk mudharabah was successfully allocated to insurers, asset managers and banks, achieving broad institutional placement. Asset managers picked up 82.8% of the sukuk mudharabah issuance – as underwritten by CIMB. The purpose of the issuance was to fund Pegadaian’s working-capital needs.
