Merger of 3 BUMN Sharia Banks, How are the Impacts for Customers? All pages

KOMPAS.com – PT Bank BRISyariah Tbk ( BREEZE) will be the survivor bank or entity that receives the merger (surviving entity) after the merger was carried out by 3 sharia bank BUMN.

Reported Kompas.com, Tuesday (13/10/2020), the three state-owned Islamic banks are BRISyariah, PT Bank Syariah Mandiri, and PT Bank BNI Syariah.

“Taking into account the Conditional Merger Agreement, once the merger becomes effective, BRIS will be the entity that receives the merger (surviving entity) and BNIS and BSM shareholders will become shareholders of the entity that receives the merger, “wrote the disclosure of information BRIS, Tuesday (13/10/2020).

Previously, the Minister of State-Owned Enterprises (BUMN), Erick Thohir, again proposed the discourse of a BUMN merger to improve effectiveness and efficiency.

Mentioned, Mandiri Syariah has a focus on the corporate loan segment, while BRI Syariah has a focus on financing distribution in the MSME segment.

Meanwhile, the Vice President of the Republic of Indonesia, Ma’ruf Amin said, sharia bank merger could be one of the ways taken to restore the national economy.

Then, what is the impact of the merger or merger of these Islamic banks?

Also read: In 2025, the results of the Merger of BUMN Sharia Banks could have assets of IDR 390 trillion

Customers will become one

Economist of the Institute for Development of Economics and Finance (Indef) Abra Talattov explained that PT Bank BRISyariah Tbk would be the entity that received the merger (surviving entity) in the syariah bank merger of a BUMN subsidiary.

“So later all customers will become one in one new entity,” he said when contacted Kompas.com, Tuesday (13/10/2020).

According to Abra, the consolidation of Islamic banking can be a momentum to optimize the economy and Islamic finance.

He explained, when viewed and observed, the share of Islamic banking assets in Indonesia is still relatively behind compared to other countries such as Malaysia.

He said Indonesia’s share of assets was around 6 percent. This is smaller than Malaysia, whose asset share is around 20 percent. Even though the Muslim population in Indonesia is very large.

Focused and efficient

With the merger of state-owned sharia banks, according to Abra, it will be a positive sentiment for the community.

“I think there will be a short-term disruption as well, positive sentiment, people will choose Islamic banks as an objective for investment or for saving,” he said.

According to him, Indonesian society has been divided. With the merger, now the fragmentation of choosing Islamic banks, especially Islamic banks in BUMN, can be more focused.

“Apart from the very large assets, around the 7th or 8th rank will be an attraction for customers to be able to flock,” he added.

In addition, from the banking side, it will improve infrastructure efficiency. Because these Islamic banks do not need to create new branch offices or ATMs.

Efficiency will also occur in digital platform services. What is meant by digital platforms are, among others, mobile banking, internet banking, and the like.

So far, digital platforms usually require large fees and that is a challenge for Islamic banks. Not necessarily all Islamic banks have sufficient funds.

“Efficiency will also occur if this combined Islamic bank improves digital platform services. Optimizing the development of a digital platform for Islamic banking, so that it will not be inferior to conventional banks,” he said.

According to Abra, this will be a potential acceptance of Islamic banks outside of profit sharing. Has the potential to accelerate due to the development of digital platforms.

Also read: This is a process that must be taken before the merger of a state-owned sharia bank

Impact on customers

Abra explained that the syariah bank merger will also have a positive impact on society.

Because with the infrastructure owned by each bank, services to customers can be wider in reach.

“Whether it’s branch offices, ATMs, it will be more integrated to use. So it will benefit the community,” he said.

He continued, if all this time the public had to use their respective ATMs or Islamic banks, with the merger they could use the facilities in the merged Islamic banks.

New name

In addition, according to Abra, later it is necessary to make a new name for the new merged Islamic banks

This is to represent the transformation or combination of new banks. Because if you still maintain your old name, you are worried that it will cause bias or confusion for customers.

He said customers would be confused, for example a BSM customer suddenly became BRI Syariah if the name used the name of a bank.

According to Abra, his name is better replaced with a name that reflects the existence of transformation, strengthens the principles of sharia, and emphasizes aspects of modernity.

He explained that the segment or share of the Islamic banking market is dominated by the middle class and productive groups (young or millennial groups).

“This merger is expected to capture a medium to long term market so that the middle-class youth can get bigger,” said Abra.

Also read: Merger of Three BUMN Sharia Banks Will Not Impact Employee Layoffs

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