History

Bank Syariah Mandiri (BSM)’s corporate values uphold humanity and integrity and have been, since its inception, deeply entrenched in all the people of BSM.

Present with the Aspirations for Building the Country

Bank Syariah Mandiri (BSM)’s corporate values uphold humanity and integrity and have been, since its inception, deeply entrenched in all the people of BSM.

The presence of BSM since 1999 has actually had the salutary effects and blessings in the wake of the 1997-1998 economic and monetary crisis. As it was anticipated, the economic and monetary crises since July 1997, followed by a multi-dimensional crises, including on the national political stage, had massively left diversified negative impacts on all aspects of the life of the people, including the business world. In some circumstances, the national banking industry, as dominated by conventional banks, experienced a severe crisis. Furthermore, the government used measures by restructuring and recapitalizing some banks in Indonesia.

One of the conventional banks, PT Bank Susila Bakti (BSB), owned by Yayasan Kesejahteraan Pegawai (YKP) of PT Bank Dagang Negara and PT Mahkota Prestasi, was also affected by the crisis. BSB managed to escape from the situation by entering into a merger with several other banks and inviting foreign investors.

At the same time, the government merged on July 31, 1999 four banks (Bank Dagang Negara, Bank Bumi Daya, Bank Exim, and Bappindo) into a new bank named PT Bank Mandiri (Persero). The merger policy has also placed and confirmed PT Bank Mandiri (Persero) Tbk. as the new majority owner of BSB.

To act on the merger decision, Bank Mandiri made consolidation and created the Sharia Banking Development Team. The creation of the team aimed to develop Islamic banking services in the Bank Mandiri group of companies, in response to the operation of Law No. 10 of 1998, which provides commercial banks with opportunities to serve sharia transactions (dual banking system).

The Sharia Banking Development Team considered the operation of the Law was the moment to gather momentum to convert PT Bank Susila Bakti from a conventional bank to an Islamic bank. Therefore, the Sharia Banking Development Team immediately prepared the systems and infrastructure thereof, to change the BSB's business line from a conventional bank to a sharia-compliant bank under the name of PT Bank Syariah Mandiri, as stated in Notarial Deed (Sutjipto, SH), No. 23 of September 8, 1999. A change of the BSB's business line into a sharia commercial bank was confirmed by the Governor of Bank Indonesia under Decision of Governor of Bank Indonesia No. 1/24/KEP.BI/1999 of October 25, 1999. Further, Bank Indonesia, under Decision of the Senior Deputy Governor No. 1/1/KEP.DGS/1999, approved the name change to PT Bank Syariah Mandiri. Upon being legally confirmed and recognized, PT Bank Syariah Mandiri officially began its operation on Monday, 25 Rajab 1420 H or November 1, 1999.

PT Bank Syariah Mandiri is present, appears and grows as a bank capable of integrating business idealism with spiritual values, upon which its operational activities are based. These harmonized business idealism and spiritual values are among the advantages of Bank Syariah Mandiri in taking part in the Indonesian banking. BSM is now here to build Indonesia towards better Indonesia.