PT Bank Negara Indonesia

Indonesian Islamic Megabank Merger Plan Shifts From 2015 to 2017

The difficulties in forming a megabank in the $2 trillion Islamic finance industry are becoming clear as Indonesia pushes back deadlines for its plan after failures in Malaysia and the Middle East. Financial Services Authority Director Dhani Gunawan Idat is the latest official to repeat Indonesia’s goal for such an entity after two years of trying, with a plan to merge the Shariah-compliant units of PT Bank Mandiri, PT Bank Negara Indonesia, PT Bank Rakyat Indonesia and PT Bank Tabungan Negara. He put the time frame as 2017 in an interview Friday, while his Chairman Muliaman Hadad said in January it may happen this year. Gatot Trihargo, deputy minister for government-run enterprises, said in June that 2016 was the target.

Indonesia Accepts Islamic Megabank Challenge Shelved by Malaysia

The Indonesian government plans to merge the Shariah-compliant units of state-owned PT Bank Mandiri, PT Bank Negara Indonesia, PT Bank Rakyat Indonesia and PT Bank Tabungan Negara with paid-up capital of more than 15 trillion rupiah ($1.1 billion) next year, Gatot Trihargo, deputy minister for government-run enterprises, said. Financial Services Authority Chairman Muliaman Hadad said in January that the plan may materialize this year. In the Indonesian plan, the government will ask the four lenders to provide 5 trillion rupiah to 10 trillion rupiah of capital to their Shariah banking units before the planned merger, Trihargo said. The combined entity will help manage about 70 trillion rupiah and this would be used to fund infrastructure projects, he said.

IDB unit funds PT Bank Negara Indonesia expansion to Asia

Islamic Corporation for the Development of the Private Sector, a unit of Islamic Development Bank plans to invest as much as USD 500 mn in PT Bank Negara Indonesia’s Shariah- compliant banking unit to help it expand in Asia, specifically Indonesia, Southern Thailand and Malaysia.

The nation’s Shariah-compliant banking assets rose 47 % to 48.4 trillion rupiah (USD 4.6 bn) at the end of 2008, according to Bank Indonesia data.

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