DPR Appreciates BTN For Acquisition Of Bank Muamalat

Illustration. (Photo: Doc. Antara)

JAKARTA - The news about the cancellation of the acquisition of Bank Muamalat Indonesia, Tbk. (BMI) by PT Bank Tabungan Negara (Persero) Tbk (BTN) attracted the attention of the legislature. They considered that BTN's move was a form of prudence of state-owned banks that needed appreciation.

Deputy Chairman of Commission XI DPR RI from the National Awakening Party (PKB) faction, Fathan Subchi praised the attitude of BTN management in the process of acquiring or merging BTN Syariah with Bank Muamalat. The due diligence stage, which was carried out over the past four months, involved a number of auditors and credible business consultants, shows the professional side of management in carrying out this very significant corporate action.

The results of the due diligence became the management's foothold to move on to the next stage. At this point, news circulated, BTN decided not to proceed because there were differences in vision, strategy and valuation.

The decision, said Fathan, can be understood because it has gone through a correct and credible process. In addition, the considerations taken have seen both sides, both in terms of BTN and from the side of Bank Muamalat.

"The decision taken is based on studies and analysis by prioritizing the principle of prudence. Including the due diligence process that has been carried out. This is the best way for BTN and Muamalat," said Fathan, Wednesday, July 3. According to Fathan, before making a decision, BTN must also ensure that every corporate action, including acquisition, is in accordance with the company's business strategy and values.

"Including the suitability of culture and the vision between the two entities must also be considered. It cannot only be seen from one entity," he added.

Do not let, he continued, the decisions taken actually harm one party, or even both parties. This is by considering the position of BTN as a state-owned enterprise (BUMN) and Bank Muamalat in which there are people's funds through the Hajj Financial Management Agency (BPKH).

If BTN cancels the plan to acquire Bank Muamalat, for example, because of the problem of prices that have not been agreed, of course each has considerations that have been carefully considered.

"Therefore, we appreciate BTN's steps if it fails to acquire Bank Muamalat with careful consideration," he said.

Director of the National Committee for Sharia Economics and Finance (KNEKS) Sutan Emir Hidayat assessed that the cancellation of the acquisition and merger of BTN Syariah and Muamalat was more related to different visions and pressures for Muamalat to be allowed to stand alone outside BUMN.

"It seems that the rumors (BTN canceled the acquisition) are indeed true. When conducting due diligence, both parties may feel they do not have the same vision and ultimately choose a different strategy," said Sutan Emir Hidayat.

The vision in question is related to the strategy for developing Islamic banks as a result of the merger. BTN may bring a business model that is very focused on the housing ecosystem, while many people hope that Bank Muamalat will continue the strategy that has been initiated by its founders. In addition, there may be a number of technical problems whose settlement process takes quite a long time, such as the issue of existing customer credit contracts or the structure of Muamalat's shareholders themselves.

"If there are too many obstacles, maybe separating is the best choice. Because, if you continue to be forced, the results can not be good for everything," he said.

Emir smelled the signs of canceling the acquisition when Muhammadiyah voiced the importance of Bank Muamalat to stand alone, not being part of the BUMN family. These inputs may make the parties unable to go further.

"Whatever the decision, we certainly appreciate it as long as the decision is based on very careful consideration. The important thing is that the spirit remains the same, namely for the advancement of the country's Islamic finance industry," he said.

Citing the statement of one of the Muhammadiyah figures Anwar Abbas, the existence of a bank belonging to the people' needs to be maintained for the common good as well as caring for the legacy of its founders who have struggled to maintain Muamalat.

"With several considerations, the idea togger Bank Muamalat and BTN Syariah should not be continued," said Anwar Abbas, a Muhammadiyah figure who also serves as Deputy Chairperson of the Indonesian Ulema Council (MUI), some time ago.

According to Buya Anwar, in the midst of the competition of the banking world in Indonesia, which has a Muslim majority population, it is better if there are private banks belonging to Muslims. He hopes that in dealing with Bank Muamalat's problems, an approach that is not only purely using economic and business calculations.

"We must also be able to pay attention to and maintain history, the aim and objective of us establishing this bank is that we want Muslims to have a bank based on sharia principles, which is expected to be able to help the people's economy, especially businesses that are in the MSME group, especially small, micro and ultra micro businesses, which amount to 99% of all business actors in this country, which by the existing banking system has been integrated systemically," said Anwar.