Bank Syariah Indonesia (BSI) continues to solidify its role in advancing Indonesia’s sustainable economy, aligning with the government's Asta Cita program. This includes strengthening national resilience and promoting economic independence through green development strategies.

Islamic Finance Meets ESG: BSI’s Strategic Role in the Green Economy

BSI President Director Anggoro Eko Cahyo emphasized that zakat has the potential to become a powerful Islamic economic instrument. “Zakat is an economic tool in Islam that can drive progress and welfare for the community. We continue to develop zakat-based products at BSI to maximize their impact,” he stated.

The bank's commitment to environmental, social, and governance (ESG) principles is reflected in both business operations and community empowerment. BSI has been proactive in integrating sustainability not only in financing but also in social initiatives like zakat.

Green Financing Portfolio Hits Rp15.3 Trillion with 14.5% Growth

As of June 2025, BSI reported unaudited sustainable financing of Rp72.8 trillion, marking a 19.3% year-on-year increase. The portfolio includes green financing of Rp15.3 trillion, which grew 14.5% YOY, and social financing of Rp57.5 trillion, up 20.6%.

BSI’s green financing is concentrated in sectors such as renewable energy, eco-efficient infrastructure, and sustainable land use and biodiversity management. The bank has also expanded financing for electric vehicles, supporting Indonesia’s energy transition.

According to Anggoro, accelerating sustainable financing is essential for national development. He stated that it helps “preserve the environment, ensure equitable economic growth, maintain national competitiveness, and strengthen Indonesia's role in addressing the global climate crisis.”

Zakat as a Tool for Sustainability: BSI’s Green Zakat Innovation

In collaboration with BAZNAS and UNDP, BSI has launched a green zakat framework that applies ESG principles to zakat implementation. The concept aims to use zakat as a tool to tackle climate change, environmental protection, and poverty alleviation.

A key initiative is the BSI Village program, which features solar-powered facilities that support community operations. This program demonstrates how zakat can serve as a means for environmental, social, and economic empowerment.

Recognition and Impact: Awards and Real-World Results

BSI’s innovation in green zakat earned it the Katadata Green Initiatives Award 2025 for Environmental Zakat Management. It was recognized for pioneering zakat as a funding tool that supports the UN Sustainable Development Goals (SDGs).

Additionally, BSI received three honors at the BAZNAS Award 2025:

• Best Bank for Zakat Payment Services
• Model Zakat-Paying Corporate Entity
• Strategic Partner Supporting BAZNAS

By May 2025, BSI had distributed Rp65.6 billion in zakat, impacting over 240,000 beneficiaries across economic, health, education, humanitarian, and advocacy sectors.

PHOTO: BSI

This article was created with AI assistance