Encourage Banking To Do Spin Off, OJK: Not Good BSI Without Competitors

JAKARTA - The Financial Services Authority (OJK) encourages banks with sharia business units (UUS) to spin off from the parent bank.

Chief Executive of Banking Supervision of the Financial Services Authority (OJK) Dian Ediana Rae said, actually spin off and merger should be done. He considered, it would not be good if Islamic banks such as Bank Syariah Indonesia were the only Islamic banks in Indonesia.

"It's not good if big banks like BSI without competitors. Because the competition policy is not good and we need to improve the market structure so that we have a bank that is getting bigger day by day because for banks it's a size do matter," said Dian in an online press conference, Monday, August 5th.

Dian said, this has been proven by the presence of other large banks so that banks are not merely profit-oriented, but also in strengthening the financial structure in Indonesia.

For information, the offUUS spin rules are contained in POJK No.12 of 2023 concerning Sharia Business Units which require banks to spin off the UUS if the portion of UUS assets is more than 50 percent or UUS assets reach more than IDR 50 trillion.

On the same occasion, Dian also revealed that until now OJK had not yet received a request from Bank BTN for its corporate action in merging BTN UUS with PT Bank Muamalat Indonesia Tbk.

However, Dian ensured that talks related to the plan had been carried out and BTN continued to finalize the concept of the merger.

"I think if BTN banks want BMI's initials, of course there are many involved because BTN belongs to the government and we know BMI is also in a strategic position so that efforts to carry out the merger carried out by BTN and BMI are positive efforts," concluded Dian.