REPUBLIKA.CO.ID, JAKARTA -- PT Bank Tabungan Negara (Persero) Tbk (BBTN) is targeting the spin-off of its sharia business unit BTN Syariah to be completed in the third quarter of 2025. BTN also explained the scheme of splitting UUS into BUS.

“So that BTN Sharia can operate as a Sharia Public Bank (BUS) before the end of the year,” said BTN President Director Nixon LP Napitupulu after the 2024 Financial Year AGM at Tower I of BTN Jakarta on Wednesday.

Based on the timeline, BTN will apply for a licence to acquire Sharia Bank Victoria (BVS) with the Financial Services Authority (FSA) as the banking regulator.

“After obtaining permission from regulators, BTN will separate UUS, BTN Sharia, and integrate it into BVIS into a new BUS,” Nixon said.

Nixon explained the scheme of separation of UUS, namely by first making the acquisition of BUS and subsequently BTN Sharia will be integrated into BUS as a result of the takeover.

Through the acquisition, he added, BTN will become the full owner of BVIS with a shareholding of as much as 100 percent of the entire invested and fully paid-up capital, for a nominal total of Rp 1.06 trillion.

“BTN made the purchase of BVIS with an internal source of funding that had been prepared according to the bank's business plan,” Nixon said.

Referring to Law No. 19 of 2003 on State-Owned Enterprises (SOEs) and the Ministerial Regulation on State-Owned Enterprise Action of 2023, the proposed restructuring of the UUS requires approval from the Minister of SOE.

“In this case, the SOE Minister first needs to get the President's approval,” Nixon said.

After it was later approved, Nixon said BTN Sharia's spin-off move could be given tax incentives as long as it was categorised as a restructuring for performance improvement and adding value to the company.

Nixon said that Sharia BTN has great potential to become a strong competitor in the national sharia banking industry, as it has the uniqueness of being a major player in the sharia based Home Ownership Credit (KPR) market in Indonesia.

“With the spin-off into a sharia public bank, BTN Sharia will record asset growth that is expected to reach Rp100 trillion within the next three years,” Nixon said.

At BTN's Annual General Meeting of Shareholders (AGM), the shareholders approved to acquire BUS namely PT Bank Victoria Syariah (BVIS) as part of a planned spin-off of Sharia Usaha Unit (UUS), BTN Syariah.

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