BTN Officially Spin-Off UUS, BSN Becomes The Second Largest Sharia Bank In Indonesia

JAKARTA - The Extraordinary General Meeting of Shareholders (EGMS), BTN officially approved the separation of the Sharia Business Unit (UUS) to PT Bank Syariah Nasional (BSN), Tuesday, November 18.

The results of the merger of BTN and Bank Victoria Syariah UUS will make BSN the second largest Islamic commercial bank (BUS) in Indonesia, a total of IDR 70 trillion.

The total asset value of the BTN UUS has met the limits stipulated in the provisions of Article 59 POJK 12/2023 since the fourth quarter of 2023 or to be precise as of December 2023. Based on BTN's financial report for the 2023 (audited) financial year published in the first quarter of 2024, it was recorded that the BTN UUS had total assets of IDR 54.3 trillion.

Therefore, the Company as a conventional commercial bank is required to separate or spin-off UUS.

"The separation of UUS is also carried out in line with the increasingly conducive regulatory climate, such as POJK 16/2022 which encourages the transformation of UUS into Bank Umum Syariah (BUS). Thus, the synergy between BUS and its parent can be established more closely in order to improve product quality and service. Post-separation business operations will also be more effective and efficient," said BTN President Director Nixon LP Napitupulu in a press release received by VOI editorial, Wednesday, November 19.

The BTN UUS network currently includes 35 Sharia Branch Offices (KCS), 76 Sharia Assistance Branch Offices (KCPS), and 589 Sharia Service Offices spread across various regions.

Most of the technological infrastructure has been separated from the parent, as well as competent human resources (HR), making the BTN UUS considered ready to operate independently.

After the spin-off, all assets and obligations of the BTN UUS will be officially transferred to BSN. The finalization process for the delegation will be set in the BSN EGMS on November 19, 2025. BTN has also prepared a Group Principle Guideline (GPG) as a guideline for governance between the parent and subsidiary.

This guideline is the basis for aligning policies, ensuring consistency and standardization, increasing accountability, supporting compliance with regulations, encouraging efficiency and synergy, and facilitating adaptability.

In facing an increasingly competitive banking industry, BSN will implement the 2025 '2029 Corporate Plan which focuses on five main strategies.

Among other things, strengthening sustainable sharia-principles financing, strengthening financing risk management by reducing Non Performing Financing (NPF), boosting low-cost funds through digital innovation, increasing fee-based income, and expanding access to home financing for low-income communities and the millennial segment.