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Bank Jatim's sharia unit ready for launch in September
The East Java government-owned lender Bank Jatim is aiming to finalize the establishment of its sharia unit into a separate new subsidiary in September, having injected Rp 1 trillion (US$76.3 million) in capital for the new unit's equity.
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A Bank Jatim teller serves a customer. The bank's sharia business unit will start running as a separate subsidiary entity as of September. (Antara/Rosa Panggabean)
T
he East Java government-owned lender Bank Jatim is aiming to finalize the establishment of its sharia unit into a separate new subsidiary in September, having injected Rp 1 trillion (US$76.3 million) in capital for the new unit's equity..
Bank Jatim director Su'udi said the initial capital was injected under the name of Bank Jatim and the employees' cooperative. However, the bank is also offering shares in the new unit to other parties.
"Most of the shares will be owned by Bank Jatim. We have talked with the cooperative and are currently in the process of offering half of the bank's shares to other local governments in East Java," he said in Jakarta on Monday.
The measures, he continued, had been approved by East Java Governor Soekarwo.
With Rp 1 trillion in capital, Bank Jatim’s sharia bank will be a tier-2 capital entity. It will be run from two main branches and 11 sub-branches across the province.
Meanwhile, Su’udi added, Bank Jatim will also open at least two new branches outside East Java this year, namely in Batam in Riau Islands and Kupang in East Nusa Tenggara.
Bank Jatim's market share in East Java currently stands at around 7.84 percent.
"There are more than 50 banks operating in East Java. On average, each bank has a 2 percent market share. We have surpassed the average level," he said. (ags)
