Indonesia’s Financial Services Authority Issues Permit for Merger of the Three State-Owned Indonesian Shariah Banks

Indonesia’s Financial Services Authority (OJK) has issued a permit on the 27 January 2021, for the formation of Indonesia’s largest Shariah bank under the name PT Bank Syariah Indonesia (BSI). BSI involves the combination of three state-owned Islamic banks, namely PT Bank Syariah Mandiri, PT Bank BNI Syariah, and PT Bank BRISyariah. The merger is scheduled to be effective as of the 1st of February 2021.

The approval was marked by a copy of the OJK Board of Commissioners’ Decree by Number 4 / KDK. 03/2021 regarding the Granting of Permit to Merge PT Bank Syariah Mandiri and PT Bank BNI Syariah into PT Bank BRISyariah, and a permit to changing the entity’s name to PT Bank Syariah Indonesia.

BSI will operate at the Ministry of Law and Human Rights...