BTN Syariah Assets Will Reach Above IDR 50 Trillion

Photo: Doc. Antara

JAKARTA - Assets of the Sharia Business Unit (UUS) owned by PT Bank Tabungan Negara (Persero) Tbk. it is believed that it will exceed the position of IDR 50 trillion by the end of 2023. This position is supported by the disbursement of financing which shot up throughout 2023.

President Director of Bank BTN Nixon LP Napitupulu said as of November 2023, BTN Syariah assets had reached Rp49 trillion.

"In line with the Government's stimulus in the housing sector and the public's high interest in sharia financing, I am optimistic that the assets of BTN Syariah will reach above IDR 50 trillion by the end of 2023," Nixon explained in Jakarta, Wednesday, January 24.

The increase in BTN Syariah assets also recorded a bright track record. Starting from 2018 to 2022, BTN Syariah recorded an asset growth rate per year for the last five years (compound annual growth rate / CAGR) of 9.8 percent. Nixon said the exact figure of the position of BTN Syariah assets will soon be delivered in a full year 2023 performance presentation.

Nixon also ensured that in addition to the soaring financing, the quality of financing for Sharia BTN was maintained. With the quality of maintained financing growth, Nixon believes that Sharia BTN will be able to become one of the major Islamic banks that can serve various customer needs to own a house with a sharia financing scheme.

"BTN Syariah has a strong sharia financing infrastructure and a wide network of developer partners, so we believe that it can meet the needs of the Indonesian people to have housing by financing sharia schemes," said Nixon.

Meanwhile, with the position of these assets, the BTN Bank UUS has met the requirements to spin-off. In the Financial Services Authority Regulation (POJK) No. 12 of 2023 states that if the total UUS assets are more than IDR 50 trillion, then they are required to separate according to certain stages. The OJK also regulates the deadline for submitting the separation agreement, which is a maximum of 2 years after the deadline for submitting the quarterly publication report.

Previously, from the financial report as of September 2023, it showed that the BTN Syariah business was still dominated by distribution of Sharia-based Home Ownership Loans (KPR) or BTN iB mortgages, both subsidies and non-subsidized. The composition of sharia mortgages occupies 92.53 percent of the total financing of Sharia BTN or equivalent to Rp33.11 trillion as of September 2023.

KPR BTN Subsidized iB which targets the subsidy segment to record distribution growth of up to 21.67 percent year-on-year (yoy) to Rp22 trillion as of September 2023. Meanwhile, KPR BTN iB non-subsidized grew 15.32 percent yoy to Rp11.11 trillion as of September 2023.