OJK Has Not Received Adjutants For BTN Syariah Mergers With Other Banks

JAKARTA - The Financial Services Authority (OJK) has yet to accept a request for a BTN Syariah merger plan against other banks, after the cancellation of the acquisition plan against Bank Muamalat.

"Until now, the OJK has not yet submitted a request to the OJK regarding the BTN corporate action plan against other banks. All processes and initiatives regarding corporate action plans carried out are the authority of the bank management concerned," said OJK Banking Supervision Chief Executive Dian Ediana Rae quoting Antara.

If there is a request for a corporate action plan to the Financial Services Authority (OJK), added Dian, then the OJK will evaluate and process in accordance with applicable regulations. According to him, this plan has been discussed with the OJK.

OJK considers that this consolidation plan can strengthen the synergy between the two banks by combining the company. That's why, said Dian, OJK welcomed the acquisition plan proposed by BTN.

"With the cancellation of this acquisition, of course, there will still be opportunities for other banks or institutions to acquire Bank Muamalat in order to continue to improve the performance of BMI and Islamic banking in general," he said.

Dian said the OJK would open opportunities for domestic and foreign investors who are committed to developing banking in Indonesia in accordance with the Roadmap for Sharia Bank Development.

According to him, efforts to accelerate the development of Islamic banking are carried out in various ways, including through sharia banking consolidation programs that will continue to be carried out to achieve a comprehensive scale of efficiency and competitiveness of Islamic banking.

"OJK will continue to encourage and support the consolidation steps of Islamic banks that will be carried out in the context of developing Indonesian Islamic banking," he said.

Dian added that consolidation efforts are also possible in line with the response of the Islamic banking industry related to regulations regarding the spin off of the Sharia Business Unit (UUS), which is expected to realize a more ideal Islamic banking market structure with the presence of several larger and more competitive Islamic banks.

As for POJK No. 12 of 2023 concerning Sharia Business Units has regulated the obligation to separate UUS if the UUS asset value has reached 50 percent of the total assets of its parent conventional commercial bank (BUK) and/or the amount of UUS assets of at least IDR 50 trillion.

"Currently, there is one UUS that meets these criteria and according to POJK, time is given to apply for a permit or approval no later than 2 years after the criteria are met," Dian noted.

All UUS, explained Dian, is also of course evaluating aspects of business model readiness and infrastructure to respond to the provisions for the separation of the UUS.

In accordance with the provisions, OJK can request a separation of UUS in the context of consolidating Islamic banking for the development and strengthening of Islamic banking if a UUS is deemed not to show a good development.

Previously, the President Director of PT Bank Tabungan Negara (Persero) Tbk (BTN) Nixon LP Napitupulu had revealed that his party would not continue the acquisition of Bank Muamalat.

This was conveyed by Nixon in the Hearing Meeting (RDP) with Commission VI of the DPR RI in Jakarta on Monday (8/7). The decision not to continue the corporate action, said Nixon, had also been submitted to the OJK and shareholders in this case through the Ministry of SOEs.