Islamic Bank Business Model In Driving Asset Growth And Environmental Sustainability Mission: A Study Of Indonesian Sharia Banks

Abstract

A company's business model not only drives asset growth but also promotes environmental and social sustainability. Sustainable finance reflects the integration of achieving economic goals while also addressing environmental and social goals. Asset growth must align with its environmental sustainability mission. Therefore, this study has two objectives: first, to analyze the business model of Bank Syariah Indonesia (BSI) in projecting asset growth; second, to analyze the role of Bank Syariah Indonesia (BSI) in its environmental sustainability mission. This study employed system dynamics methods. Data analysis utilized PowerSim version 10 academic software. The data used were time series data from BSI's annual financial reports for the 2022-2024 period. The research findings: The Business Model developed by BSI has been able to project positive and significant asset growth during the simulation period (2022-2032); second, the BSI Business Model promotes its environmental sustainability mission through corporate initiatives such as sustainable financing portfolio allocation and sustainable sukuk issuance, as well as environmentally friendly operations at BSI.