Conditional Merger Agreement Signed Between State-Owned Indonesian Banks to Kick-off Merger Plans

Indonesia’s state-owned PT Bank BNI Syariah, PT Bank Rakyat Indonesia Syariah, and PT Bank Syariah Mandiri have entered into a Conditional Merger Agreement (CMA), the signing of which initiates merger plans which are anticipated to be completed in 2021. The merged entity is expected to hold a very strong asset base, with Bank Syariah Mandiri recording assets of IDR 112.1 trillion, BNI Syariah IDR 49.97 trillion, and BRI Syariah IDR 51.8 trillion, as of August 2020.

Whilst the signing of the CMA was witnessed by Directors and shareholders of the respective banks, as well as Erick Thohir, Indonesia’s Minister of State-owned Enterprises, media sources note that an official statement on the merger is yet to be ma...