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State initiated Bank Syariah Indonesia to tap into global sukuk market
After the merger is concluded, Bank Syariah Indonesia is expected to hold Rp 214.6 trillion (US$15.24 billion) in assets with a core capital of Rp 20.4 trillion and the bank could become one of the world’s biggest sharia banks by market capitalization by 2025.
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Digital sharia service: A Bank Mandiri Syariah employee serves a customer at the lender’s Central Jakarta office. (JP/Wendra Ajistyatama)
T
he government is moving steadily closer to creating the country’s biggest sharia bank, which is expected to help bring in funding raised from the global sukuk market to support Indonesia’s infrastructure development.
State-owned Bank Mandiri’s subsidiary Bank Syariah Mandiri (BSM), Bank Negara Indonesia (BNI) subsidiary BNI Syariah (BNIS) and Bank Rakyat Indonesia (BRI) subsidiary BRI Syariah signed on Wednesday a merger deed after each of the three banks secured shareholder approval to merge into one entity. The shareholders also agreed on the bank’s new logo and name: Bank Syariah Indonesia with publicly listed BRI Syariah being the surviving entity and bearing the new name.
The signing marks the first step of the legal merger scheduled to be completed in February next year, Deputy State-Owned Enterprises (SOEs) Minister Kartika “Tiko” Wirjoatmodjo said.
“We hope the sharia bank will obtain a license to access the global sukuk market to help the country fund its infrastructure projects like toll roads or power plants,” he said during the signing virtual press briefing.
Read also: Jokowi aims to awaken ‘sleeping giant’ by merging state-owned sharia banks
“We hope that this sharia bank can help Indonesia to have a strong and healthy sharia ecosystem, as well as becoming one of the leading banks in the global sharia economy.”
After the merger is concluded, Bank Syariah Indonesia is expected to hold Rp 214.6 trillion (US$15.24 billion) in assets with a core capital of Rp 20.4 trillion and the bank could become one of the world’s biggest sharia banks by market capitalization by 2025.
