Indonesia’s Bank Syariah Indonesia (BSI) made significant progress in 2024 on embedding sustainability into its operations.
The flagship moment came in June with the issuance of the bank’s first corporate sustainability sukuk. The three-year, Rp3 trillion ($181 million) offering, priced at 6.65%-6.80%, attracted Rp9 trillion of orders – three times coverage – and committed 30%-50% of proceeds to environmental projects and the remainder to social programmes. The deal not only lowered BSI’s liquidity-risk indicator to 4.73 and nudged its net-stable-funding ratio up to 130.15%, it also gave institutional and retail investors a Shariah-compliant gateway into the green economy from as little as Rp5 million.
Internally, a dedicated ESG group set up in July 2024 has already delivered a 133% completion rate on the regulator-mandated Sustainable Finance Action Plan, rolling out 22 initiatives.
The bank’s staff engagement on sustainability was broad: 15,233 employees – 85% of the workforce – have completed ESG training, and a “green business culture” launched in January 2025 is reshaping daily operations.
A dedicated ESG group set up in July has already delivered a 133% completion rate on the regulator-mandated Sustainable Finance Action Plan
The newly established ESG group supported the bank’s green and social loan book expansion of 108% and 101%, respectively, lifting total sustainable financing to Rp66.4 trillion – 23.88% of the portfolio, with Rp52.4 trillion supporting MSMEs and Rp14.1 trillion channelled into renewable energy, efficient transport and eco-products.
Bloomberg’s ESG score for BSI jumped from 2.24 to 3.86, elevating the bank from “Above median” to “Leading” and placing it fourth among Indonesian commercial banks and among the top global Islamic peers.
Social contributions have also been a priority for the lender: BSI disbursed Rp222 billion in corporate zakat, funded scholarships for 2,300 students and extended community services to 20 villages, underscoring its intent to align its Shariah and sustainable development finance goals.
