JAKARTA (TheInsiderStories) – The new Islamic bank holding, PT Bank Syariah Indonesia Tbk (IDX: BRIS) has planned to releases new shares with worth US$500 million to fulfill the free float shares regulation, said the deputy minister state own enterprises (SOEs) on Wednesday. Based on the capital market rule, the publicly listed company in Indonesia Stock Exchange must owned by public at least 7.5 percent.
Deputy minister, Kartika Wirjoatmodjo stated, “This year, BSI will conduct a rights issue, this is part of the free float provisions and to find a strategic partner.”
After merger, which is a combination of BRISyariah, Bank Syariah Mandiri, Bank BNI Syariah, the public share remained at 4.4 percent from the previous 18.47 percent. The shares will offer through the Indonesia Investment Authority and the government open an opportunities for foreign investors to become the shareholders of the sharia bank.
The lender targeting to distributes loan financing for micro, small, and medium enterprises (MSME) around Rp53.83 trillion (US$3.73 billion). Until the third quarter of 2020, the total outstanding loans for MSMEs by the merged banks recorded Rp36.36 trillion.
In detailed, BRISyariah distributed Rp18.7 trillion, Bank Syariah Mandiri lend Rp11.67 trillion, and Bank BNI Syariah amounting to Rp5.99 trillion. Beside MSMEs,the Islamic bank also targets sharia bond market, both domestic and Middle East.
In this month, state own enterprises ministry has officially merge the sharia banks. After merged, Bank Syariah Indonesia have a total assets of Rp214.6 trillion with a core capital more than Rp20.4 trillion an entered the top 10 largest Islamic banks in Indonesia in terms of assets.
In addition to having large assets and core capital, the lende will also be supported by the existence of more than 1,200 branches and 1,700 ATM networks. The new CEO of Bank Syariah Indonesia, Hery Gunardi, said that a number of plans would be carried out by the merged bank.
The merger firm, he adds, will focus on the wholesale banking business in Islamic finance, included tapping into the potential of the global SUKUK market in the Middle East. After merger, the company will have a branch or representation office in Dubai, Uni Emirates Arab in 2021.
Bank Syariah Indonesia will remain in the status of a public company and be listed on the Indonesia Stock Exchange. The shareholders of the issuer are PT Bank Mandiri Tbk (IDX: BMRI) by 51.2 percent, PT Bank Negara Indonesia Tbk (IDX: BBNI) 25.0 percent, PT Bank Rakyat Indonesia Tbk (IDX: BBRI) 17.4 percent, BRI Syariah pension fund 2 percent, and public 4.4 percent.
Before set up the new holding of sharia bank, state own enterprises minister, Erick Thohir has aborted the formation of state-bank holding and chooses to sharpen the focus of each lender. He accused, wether to set up a holding company, he refer to focus the bank’ businesses.
According to him, only three state-owned lenders had a clear market focus. Only Bank Negara Indonesia not have a strong business focus and choice to compete with Bank Mandiri in the corporate segment. He hope the lender can become a source of international funding cause they have a number branches in abroad.
He asserted, the needs for international bank with the Indonesian flag has the potential to increase in the future. Moreover, there are a potential for the development and expansion of corporate business in the country.
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