On 14th January 2016, BNI Syariah as one of Indonesia’s foremost Islamic banks signed a Memorandum of Understanding (MoU) with Bank Aceh. The event marked the beginning of a partnership that will see BNI Syariah assist Bank Aceh in transforming into a Shariah-compliant general bank. Mr Dinno Indiano as President Director of BNI Syariah and Mr Busra Abdullah as President Director of Bank Aceh carried out the MoU signing which took place at Bank Aceh’s headquarters in the city of Banda Aceh. In addition to providing technical assistance and general guidance during Bank Aceh’s transformation process, the cooperation between BNI Syariah and the regional development bank will also encompass the initiation of business collaborations particularly in Aceh; the north-western Indonesian province renowned for its deeply-ingrained Islamic culture.

Mr Indiano in his official statement on the MoU signing explained that the partnership signifies his institution’s support for Bank Aceh to become a Shariah-compliant general bank and develop its business potential. In the broader context, the cooperation is also in keeping with the government’s commitment to develop the Islamic finance sector. The MoU specifies several roles for BNI Syariah to take in working with Bank Aceh, including providing technical assistance in matters related to products, SOP and policy development, IT development, accounting, reporting, and human resources. Meanwhile, cooperation in business development will include the co-branding of financing cards, joint marketing of consumer financing products, and syndicated financing.

Through this latest partnership, BNI Syariah expects to form a successful synergy with Bank Aceh that will benefit both institutions. This optimism especially draws upon the religious and economic landscape of the Aceh region, which precipitated the recent introduction of a provincial regulation which requires regional government-owned banks to operate under Shariah principles. The MoU signing is also amongst BNI Syariah’s earliest corporate initiatives in 2016 amidst a positive outlook for the year as the Islamic bank managed to register 17.97% year-on-year growth in assets and 34.56% year-on-year growth in profits.

For further information regarding the latest developments at BNI Syariah, please visit its corporate website.