BTN Officially Releases Sharia Business Unit To New Entity Named BSN

BTN (Between)

JAKARTA - PT Bank Tabungan Negara (Persero) Tbk (BTN) officially carried out a spin-off or separation of Sharia Business Units (UUS). Through the Extraordinary General Meeting of Shareholders (EGMS), now a new entity called PT Bank Syariah Nasional (BSN).

Through this decision, all rights and obligations of the BTN UUS have been transferred to BSN which were formed from the merger of BTN UUS and Bank Victoria Syariah. The new entity is also the second largest Islamic commercial bank (BUS) in Indonesia with total assets reaching IDR 70 trillion.

President Director of BTN Nixon LP Napitupulu said this separation was carried out after the assets of the BTN UUS exceeded the spin-off obligation limit as stipulated in Article 59 POJK 12/2023.

"As of December 2023, the total assets of the BTN UUS have reached IDR 54.3 trillion. Therefore, the Company as a conventional commercial bank is required to separate or spin-off the UUS," Nixon said in an official statement, Tuesday, November 18.

Nixon explained that this step is in line with the big projection of future Islamic economic growth. In addition to strengthening the structure of BTN as a national banking ecosystem, this separation is believed to provide benefits for customers, the Islamic banking industry, and the national economy.

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 become more effective and efficient," explained Nixon.

According to him, this policy is in line with the implementation of the 2023 to 2027 Sharia Banking Development and Strengthening Roadmap (RP3SI) launched by the Financial Services Authority (OJK), which emphasizes consolidation of UUS, institutional strengthening, and expansion of access to sharia services for unbankable UMK through Islamic social financial instruments.

In terms of performance, continued Nixon, in the last five years, the BTN UUS recorded consistent growth. In CAGR 2020-2024, assets grew 16.36 percent, financing 15.04 percent, and third party funds 20.12 percent. UUS contribution to total BTN assets also rose from 9.14 percent in 2020 to 12.90 percent in 2024.

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

"This consistent growth shows the readiness of the BTN UUS to stand alone as a full Islamic commercial bank entity," said Nixon.

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 stipulated in the BSN EGMS on November 19, 2025, the day after BTN held an EGMS to relinquish the rights and obligations of the UUS.

"With this merger, BSN's assets reached IDR 71.3 trillion, making it the second largest Islamic commercial bank in Indonesia," he said.

BTN has also prepared a Group Principle Guideline (GPG) as a guideline for governance between parent and subsidiary. This guideline is the basis for aligning policies, ensuring consistency and standardization, increasing accountability, supporting compliance with regulation, encouraging efficiency and synergy, and facilitating adaptability.

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

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.

As the parent, BTN has a strong position to support the strengthening of BSN. The synergy between BTN and BSN will create balanced growth between conventional and sharia businesses. At the same time strengthening BTN's image as an inclusive, innovative, and sustainable banking-oriented national banking group.

"With the approval of this separation, all rights, obligations, and responsibilities of the BTN UUS will effectively switch to BSN on the effective date of separation that will be set in the near future," Nixon explained.