Fulfill IDR 3 Trillion Core Capital Of Bank NTB Syariah, Provincial Government Collaborates With Bank Jatim

The Governor of NTB, Zulkieflimansyah. (Photo: Doc. Antara)

JAKARTA - The Provincial Government of West Nusa Tenggara is collaborating with East Java Bank to meet the core capital of Bank NTB Syariah of IDR 3 trillion according to the request of the Financial Services Authority (OJK).

"To deal with Bank NTB Syariah capital according to the request of the OJK, tonight we met with Bank Jatim to work together," said the Governor of NTB, Zulkieflimansyah in a written statement, quoted from Antara, Monday 16 January.

According to him, Bank NTB Syariah continues to strive to meet its core capital of IDR 3 trillion by December 2024.

"As a solution, the NTB Provincial Government is ready to partner with Bank Jatim to solve this capital problem according to the OJK's request," he said accompanied by the Main Director of Bank NTB Syariah Kukuh Raharjo.

Zulkieflimansyah is also optimistic that the collaboration between the two inter-provincial banks will bear sweet fruit through the signing of an agreement in the near future.

Meanwhile, Deputy Chair of the NTB DPRD, Nauvar Furqony Farinduan hopes that the Provincial Government will make construction efforts so that the fulfillment of the capital can be realized.

"But still fulfilling the basic capital does not interfere with regional financial circulation for other development needs. Remember if we don't fulfill the basic capital, then the grade of Bank NTB Syariah will drop from a commercial bank to a BPR," he said.

Previously, the Financial Services Authority (OJK) required banks to meet the minimum capital requirement of IDR 3 trillion in 2024. This was regulated in POJK Number 12/POJK.03/2020 concerning Consolidation of Commercial Banks.

Bank NTB Syariah, one of which must meet this large core capital. Otherwise, there are two options. Downgrade to become a Sharia People's Credit Bank (BPRS) or a bank business license is frozen.

Main Director of Bank NTB Syariah, Kukuh Raharjo said that in terms of capital, the total core capital of Bank NTB Syariah was recorded at IDR 1.37 trillion. This means that Bank NTB Syariah still has a core capital deficiency of more than IDR 1.6 trillion to meet IDR 3 trillion in 2024.

Kukuh acknowledged that the shareholders of Bank NTB Syariah made a commitment to continue to maintain the continuity of Bank NTB Syariah, including providing five alternatives to fulfill core capital.

Of the five alternatives, the focus is on two ways. First is the inclusion of assets owned by shareholders. Second, all dividends are returned to the bank's capital (not divided).

For assets, there is an additional IDR 150 billion to IDR 160 billion. While the additional dividend is around IDR 350 billion, bringing a total of IDR 500 billion in additional capital investment. The remaining IDR 1.2 trillion will try to be fulfilled by all shareholders by way of depositing or re-investing capital.

Kukuh also conveyed that regarding the opening of opportunities for outside investors to invest in capital, the shareholders (local government) had agreed to continue to fully own Bank NTB Syariah shares.

"God willing, before 2024 the IDR 3 trillion core capital can be met. Three years of additional capital by 10 regencies and cities and provinces. Around IDR 20 billion a year each, for three years, can cover the shortfall of core capital," he said.