Helping hand: A BCA Syariah staff member serves a customer after an opening ceremony at its headquarters on Jl. Jatinegara Timur in East Jakara on Monday. PT BCA Syariah, which starts operation Monday with total assets of Rp 776 billion and working capital of Rp 296 billion, will use BCA’s extensive network of ATMs and EDCs. JP/P.J. Leo
PT Bank Central Asia (BCA), one of Indonesia major banks, launched on Monday a sharia-based banking unit to reach out to the country’s large Muslim population, with an ambitious target of 35 percent growth a year.
“BCA Syariah is targeting to have 35 percent growth, in assets, financing and third-party funds,” BCA Syariah president director Yana Rosiana told reporters during the launch of the new sharia bank.
“We will use BCA’s nationwide network to support the new bank’s services,” Yana said.
According to John Kosasih, the BCA Syariah business director, consumers can access BCA Syariah services in BCA branches. “If the consumers cannot find BCA Syariah branches, they still can do transactions in BCA branches,” he said.
BCA Syariah currently has 11 branches: nine branches are in Jakarta and the other two are in Surabaya, East Java.
BCA Syariah expects to be able to achieve an annual growth of 35 percent both for consumers’ funds and financing. So far the bank has Rp 776 billion in total assets.
BCA acquired PT Bank IUB in October last year for about US$248.3 billion from the Tjahyadikarta family and later converted it to BCA Syariah to reach out to the country’s large Muslim population, which account for about 85 percent of the country’s total population.
Currently BCA Syariah has Rp 776 billion in assets and Rp 296 billion in working capital.
It also has another Rp 230 billion in additional financing and Rp 420 billion in consumers’ funds.
Based on central bank data in March 2009, Indonesia already has seven sharia banks and 26 conventional banks with sharia units. They include PT Bank Syariah Mandiri, the largest by assets, PT Bank Syariah Muamalat Indonesia and PT Bank Syariah Mega Indonesia and PT Bank Syariah BRI, PT Bank Syariah Bukopin, PT Panin Syariah and PT Bank Victoria Syariah.
Assets held by banks complying with Islamic finance requirements forbidding interest payments rose to Rp 67.4 trillion at the end of last year from Rp 49.6 trillion at the end of 2008, amounting to between 2 and 3 percent of total bank assets.