Minister Erick Plans to Merge Sharia Bank on February 2021

Jakarta, MINA – Indonesian Minister of State-Owned Enterprises (SOEs), Erick Thohir, once again proposed a discourse on SOEs mergers in order to increase effectiveness and efficiency.

This time, he is discussing the merger of Islamic banks which is a subsidiary of Himbara in February next year.

At present, the Ministry of SOEs is still reviewing the merger plan further.

“We are trying to review Islamic banks, we are trying to merge. God willing, next February will become one,” Erick said in a press statement on Friday (July 3).

The sharia banks that are planned to be merged are PT Bank BRI Syariah Tbk, PT Bank Syariah Mandiri (BSM), and PT Bank BNI Syariah. Mandiri Syariah has a focus on the corporate credit segment, while BRI Syariah has a focus on lending in the MSME segment.

Then BNI Syariah focuses on consumer banking targeting millennial and international funding because its parent, BNI, has a number of overseas branches.

During the first quarter of 2020, the performance of the three banks was recorded robustly in the face of the Covid-19 pandemic.

BRI Syariah experienced an increase in financing in the retail segment which grew 49.74 percent to Rp 20.5 trillion.

Meanwhile BNI Syariah, which had just become a BUKU III Bank in the first quarter of this year, recorded a net profit increase of 58.1 percent compared to the same period last year to Rp 214 billion.

Mandiri Syariah posted a net profit of Rp 368 billion in the first quarter of 2020, up 51.53 percent over the same period last year (yoy).

Previously, President Joko Widodo has signed a Presidential Decree related to the merger and closure of SOEs companies on May 19, 2020.

Later, these state-owned companies will experience , mergers, rationalization and closure so that overall SOEs performance can be more effective .

The planned merger and consolidation of the company is Erick’s step to restructure the BUMN that has been carried out since he is in office. (T/RE1)

Mi’raj News Agency (MINA)