BRIS - Officially obtains license from OJK, ready to operate bullion bank business

BRIS - Officially obtains license from OJK, ready to operate bullion bank business Bank Syariah Indonesia (BRIS) is ready to run a bullion bank business, following the issuance of a permit from the regulator regarding the implementation of bullion business activities to BSI. The bullion business license for BSI was issued by the Financial Services Authority (OJK) on Wednesday (12/2) for Gold Trading and Gold Custody products. BSI's President Director, Hery Gunardi, stated that the company has obtained a license from the Financial Services Authority (OJK) regarding the implementation of bullion business activities, and this serves as the legal standing for the company to start operating the bullion bank business. The bullion business activities based on POJK No 17 of 2024 are business activities related to gold conducted by financial service institutions. OJK provides guidance to BSI in the implementation of the new product, which must be carried out no later than 6 months from the date the license is issued. "We appreciate the trust and support from regulators and stakeholders, allowing BSI to step into the next phase of managing the gold business, which is bullion banking," said Hery in a press release on Thursday (13/2). Hery is optimistic that in the future, BSI will be able to drive sustainable growth in the precious metals business, thereby increasing public inclusion in investing in gold in accordance with Maqashid Sharia. (Source : Kontan) Comments : BSI's entry into bullion banking is expected to significantly increase its market share in the gold investment sector. Customers can expect a wider range of gold-related services, including trading, custody, and potentially other innovative products. BSI will continue to focus on providing sharia-compliant gold investment options. The entry of BSI as a bullion bank will likely increase competition in the market, potentially leading to more competitive pricing and improved services for customers. In all, this is a significant development for BSI, marking a major step in its growth strategy. The company is well-positioned to capitalize on the growing demand for gold investment in Indonesia and further strengthen its position as a leading player in the sharia banking sector. Maintain BUY, GGM-based TP of IDR3,670 (3.3x ‘25F PB).