Jakarta, CNBC Indonesia – The share price of PT Bank BRISyariah Tbk (BRIS) immediately shot up this morning, Tuesday (13/10/2020), amid plans to merge three state-owned Islamic banks. A press conference related to this plan will be held by the Ministry of BUMN on Tuesday afternoon.
Trade data recorded that BRIS shares immediately flew 19.44% at the level of Rp. 1,065 / share with a transaction value of Rp. 244.63 billion and trading volume of 234 million shares. At 09.11 WIB, BRIS shares rose 20%.
In the last 5 trading days, the shares of this subsidiary of PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) have risen 27% and the last 3 months have jumped 146%. In fact, in the last 6 months BRIS shares shot up 474% and year to date rose 227%.
Three sharia commercial banks, which are BUMN subsidiaries, including BRIS and PT Bank BNI Syariah, and PT Bank Syariah Mandiri will undergo a merger process.
This is stated in an MoU or Memorandum of Understanding [Conditional Merger Agreement] between the three banks and their respective parent companies.
“The MoU was signed, the three Islamic banks will later undergo a merger process,” said a CNBC Indonesia source who is aware of the signing of the MoU.
“Later there will be an official statement,” he said further.
With the merger, the assets of the three Islamic banks shot up. To note, as of August 2020, Bank Syariah Mandiri recorded assets of Rp. 112.1 trillion, BNI Syariah Rp. 49.97 trillion, and BRI Syariah Rp. 51.8 trillion.
This MoU is the beginning or kick off of the merger which is part of the history of Islamic banks in Indonesia.
Previously, State-Owned Enterprises (BUMN) Minister Erick Thohir had the ambition to merge Islamic banks belonging to state-owned banks. The merged bank will be under the coordination of the state-owned bank association (Himbara).
Deputy President Director of PT Bank Mandiri Tbk (BMRI) Hery Gunardi assessed that the potential for Islamic banking in Indonesia is still very large.
Islamic banks are also very reliance in facing the Covid-19 pandemic. “And this shows that this merger aims to optimize Islamic banks under the coordination of Himbara and this is a good goal, hopefully it will run smoothly,” said Hery.
Hery added, the penetration of Islamic banks in Indonesia is still small, 8.5-9 percent. This figure is far compared to Malaysia, where the penetration of Islamic banking is almost 40% -50% and in the Middle East it reaches 80% -90%.
Vice President of the Republic of Indonesia Ma’ruf Amin said that sharia banks in the country can be ranked in the top 20 in the world.
One of the efforts to achieve this step is by merging or merging Islamic banks owned by state-owned banks.
He said that currently the government is designing a scheme to merge Islamic banking belonging to state-owned banks, which aims to become a large bank with a broader business model development.
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