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Bank Jateng Syariah Prepares Spin Off, Hanawijaya proposes the application of Two Concepts

SEMARANG – Regarding Law No. 21 of 2008 concerning Islamic Banking. The Central Government through the Financial Services Authority (OJK) has issued a roadmap for the development of Indonesian Sharia finance. In the roadmap, the government enlarges the institutional capacity of the Islamic financial industry, by spinning off or splitting the Sharia Business Unit (USS) into a Sharia Business Entity (BUS).

OJK itself provides a deadline for the formation of BUS to banks until 2023. Although it is still three years more, the implementation of the separation of USS into BUS is felt to be a burden on some of the banks. Since the establishment of BUS BUS must have assets to support operational activities.

Based on that, some of the banks also plan to propose time leeway to the OJK. No exception is Bank Jateng Syariah, which until now still has assets reaching 5.4 trillion rupiahs. According to the Director of Retail Business & Sharia Business Unit of Bank Jateng, Hanawijaya, the assets are not enough for UUS Bank Jateng Syariah to stand on its own.

“At least to be able to stand alone, our assets must be 10 trillion rupiahs, since the assets of 6 to 7 trillion rupiahs are only sufficient for the operational costs. “We have pursued assets for three years,” he explained.

Continued by Hanawijaya, Bank Jateng Syariah will propose a time allowance to the FSA related to the spin-off time limit.

“Yes, we will submit it to the FSA, in addition to the time leeway, we also propose the application of two concepts so that the Islamic economy will continue to develop. We have prepared the proposal, “he explained.

He said, the concept to be proposed was the dual banking system that had been implemented in Malaysia, as well as the incorporation of an Islamic bank into a holding company.

“The concept of dual banking systems applied in Malaysia has proven to be able to boost Islamic banking. Therefore, the Islamic banks take advantage of its parent, because if it comes out as a corporate entity and stands alone it must have assets, “he said.

While related to the merger of the banks, said HanaWijaya, he and the team took a study from Sparkassen Bank in Germany.

“Moreover 13 BUSs that have not been converged, if combined into a holding company, they will certainly be more efficient and developed. If 13 BUSs that have Islamic units, plus Bank Jabar and Banten Syariah are combined, the assets could reach 43 trillion rupiahs. These assets will affect the development of the Islamic economy, “he added.

He added, if the proposal was not accepted, Bank Jateng Syariah would still follow the rules of the law.

“If our proposal is not accepted by the FSA, we are forced to follow the law, we have prepared a team for legal studies, no later than 2022 we will submit the file,” he added.