OJK Opens Voice Regarding BTN News Will Immediately Acquire Bank Muamalat

Jakarta - The Financial Services Authority (OJK) has opened its voice regarding the news of PT Bank Tabungan Negara (BBTN) Tbk, namely BTN Syariah, which plans to run a spin-off or divide the sharia business unit (UUS) into a sharia business entity (BUS) through consolidation steps which are reportedly planned by acquiring PT Bank Muamalat Tbk.

OJK Banking Supervision Chief Executive Dian Ediana Rae said that from the two companies there had been no discussion regarding the acquisition of the OJK.

"We haven't talked yet, so it means that it's still in the discussion stage between them. Of course this is a business-to-business process," said Dian after The Finance Executive Forum on Tuesday, November 14, 2023.

Dian said that his party would first see how the talks and agreements between BTN and Bank Muamalat were held.

If both agree and have reported it to the OJK, they will only process the plan.

"That's just what we're processing. The point is that, it will always be B2B first, then we will finish it around whether there is something we need to further scroll through. Later, we'll see in a while the corporate action," said Dian.

Dian assessed that the current competition for Islamic banking could be fairly unhealthy because there is only one bank that is big and dominates, namely PT Bank Syariah Indonesia Tbk (BRIS).

"Indeed, it's not healthy in a sharia market, there is a really big bank, the others only accept it, if it's now, it's small, it won't kick," he explained

Therefore, Dian said, currently his party is encouraging Islamic banks to consolidate and hopes that there will be two or three other banks that can be equivalent to BSI so that they can compete with conventional banking in the future.

Previously, BTN Corporate Secretary Ramon Armando said, regarding the news of the acquisition of Bank Muamalat, the company is currently preparing an option to spin off the UUS to become a BUS.

The spin-off process continues by reviewing the most efficient, easy and fast options to implement.

The first option is to set up a new company or ask for a new license for BUS. Then the second option is to acquire existing Islamic banks.

"To carry out the second option, the company is conducting an assessment with several existing Islamic banks and continues to communicate to get the best offers," Ramon replied in an information disclosure on Monday, November 13.

As for the company's corporate action plan in the next 12 months, the company has several corporate action plans, one of which is to spin off the UUS to become a BUS. The corporate action plan has been listed on the bank's business plan (RBB) and corporate action will be published after approval from the regulator.