BTN Syariah Targets Spin Off To Be Completed In Semester II-2024

JAKARTA - PT Bank Tabungan Negara Tbk (BBTN) wishes to form the 2nd largest Islamic Bank in Indonesia through its Sharia Business Unit (UUS), BTN Syariah after the spin off can later become the second largest Islamic Commercial Bank (BUS) in Indonesia based on assets.

President Director of BTN Nixon LP Napitupulu said the spin-off process of BTN Syariah would be realized after the separation or spin-off process from the BTN UUS which is targeted to be completed in April or June 2024.

"After fulfilling the POJK rules that require a spin off (UUS), then we will carry out an acquisition with the target of the bank we are aiming at. We have hopes and targets to become the number 2 largest Islamic bank in Indonesia," Nixon said in a Public Expose, Wednesday, November 29.

Nixon said his party was still in the process of acquiring one Islamic bank to be merged with BTN Syariah and established as a BUS. And has sent a letter of interest (LOI) to two Islamic banks.

"We are still in the process of acquiring and we have sent letter of interest to two objects. Well, we have indeed sent this letter of interest since the beginning of November. Well, indeed we ask to be able to enter due diligence on the bank's target," he explained.

Nixon further said that the provision of the Financial Services Authority (OJK) was the first thing to do to spin off BTN Syariah, namely having a minimum asset of 50 percent of its parent assets, namely BTN and no later than two years after its assets reached Rp50 trillion. Meanwhile, BTN Syariah's assets currently reach Rp48.41 trillion as of September 2023, or an increase of 17.26 percent (yoy) and in December it is estimated that it will be Rp50 trillion.

Meanwhile, after the asset requirements for spin off are met and after the process is complete, BTN will separate itself from its sharia subsidiary BTN sharia and then BTN will form a sharia bank.

Nixon explained that there are three ways that can be taken to form a sharia commercial bank, namely the first is to form a single Islamic bank that stands alone. However, it takes a very long time and a lot of permit.

Second, with the way of acquiring shares, namely by buying shares of other existing banks, and Third with the option of merging BTN sharia to other banks, but is estimated to have an impact on high taxes.

"It's better for the second way, so we choose only through equity transactions," he said.

Nixon further explained that after the acquisition was carried out, his party still wanted the Islamic bank that was formed to remain focused on the housing segment.

"The focus remains 60 percent-70 percent in the housing segment, the ecosystem that has been built by BTN so far, then the remaining 30 percent-40 percent we push to housing derivatives such as SME derivatives and MSMEs," he said.