REPUBLIKA.CO.ID, TANGERANG - The Financial Services Authority (OJK) decided not to allow commercial bank to open new Islamic Business Unit (UUS). The aim of new regulation, implemented this year, is part of thstrategy to boost the growth of Islamic banking in Indonesia. 

OJK requires every UUS to spin off and become Islamic bank. All UUS are expected to become Islamic bank by 2023. Director of Directorate of Research, Development, Regulation and Licensing of Islamic Banking in OJK, Ahmad Buchori said that currently Indonesia had 11 Islamic banks, 163 Islamic rural banks (BPRS) and 23 sharia business units (UUS). 

"We will not allow new UUS to be opened," he said then added that the decision was made to encourage  the UUS' spin off then transform it into Islamic bank, 

OJK will ask the UUS' roadmap towards the tranformation. Rejection to spin off will bring some consequences to UUS including disincentive. 

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