To improve Sharia banking, OJK calls on investors to strengthen Muamalat bank after cancelling BTN purchase

Jakarta – The Financial Services Authority (OJK) has opened its vote on the cancellation of the purchase of PT Bank Tabungan Negara Tbk (BTN) from PT Bank Muamalat Indonesia Tbk. OJK also offers opportunities for banks or other institutions to acquire Bank Muamalat.

OJK Executive Director for Banking Supervision Dian Ediana Rae said OJK initially assessed that this consolidation plan could strengthen the synergy between the two banks through the merger.

“Therefore, OJK welcomes the purchase plan proposed by BTN,” Dian said in Jakarta, Monday, July 15, 2024.

Dian said that the cancellation of this purchase opens the possibility for other investors to also become shareholders of Bank Muamalat. This is to continue improving the performance of BMI and Sharia banking in general.

“Therefore, the OJK for domestic and foreign investors to develop banking in Indonesia in accordance with the requirements Road map “Development of Islamic banking,” he explained.

The DIAN continued that to date, OJK has not received any requests regarding BTN’s corporate action plans against other banks.

“All processes and initiatives relating to corporate action plans are under the authority of the respective bank management,” he explained.

Dian stressed that the OJK will encourage and support measures to consolidate sharia banks, which are implemented in the context of the development of sharia banking in Indonesia.

“Consolidation efforts are also possible in conjunction with the reaction of the Sharia banking sector regarding the provisions on the separation of Sharia business units. It is expected that in the future this may structure the Sharia banking market with the presence of several larger-scale and more competitive Sharia banks,” he said.

Earlier, the President Director of PT Bank Tabungan Negara (Persero) Tbk alias BTN, Nixon LP Napitupulu, confirmed that his party has cancelled plans to acquire Indonesia’s PT Bank Muamalat.

“We will not proceed with the acquisition of the Bank of Commerce for several reasons that we can convey during the closed (meeting),” Nixon said at the DPR RI Senayan Building, Jakarta, Monday, July 8, 2024.

Although BTN did not announce this decision through disclosure, the company reported it to the Ministry of Enterprise Business as the largest shareholder of BTN and to the Financial Services Office (OJK).

“We have also consulted with our shareholders, in this case with the minister (the companies) and the deputy minister, and we have transmitted this to the OGT,” he said.