"BI warmly welcomes the merger of sharia banks since it highly supports the development of sharia economy and finance.
Jakarta (ANTARA) - Merger of three state sharia banks will increase the competitive edge of the sharia domestic economy and finance, as Indonesia has huge potential to develop the sharia economy, Bank Indonesia (BI) Governor Perry Warjiyo stated.

"BI warmly welcomes the merger of sharia banks since it highly supports the development of sharia economy and finance," Warjiyo noted during a virtual press conference following a meeting of BI's board of governors here on Thursday.

The BI governor explained that the merger of sharia banks aligned with a masterplan for development of the sharia economy and finance outlined by the National Committee for Sharia Economy and Finance (KNEKS).

The merger of sharia banks, subsidiaries of state-owned lenders, will also propel development of the halal value chain in the country, he asserted.

Based on the global index, Indonesia’s ranking in sharia economy and finance is among the top 10 in the fields of finance, food, and fashion, Warjiyo stated.

Meanwhile, BI has strengthened its sharia monetary and macroprudential policy by issuing new initiatives to develop and expand the sharia money market, he affirmed.

"The BI has not only issued sukuk BI (BI sharia bonds) for the sharia monetary operation but also launched the sharia money market through various instruments in the sharia money market," he revealed.

The three sharia banks are BRI Syariah, BNI Syariah, and Bank Mandiri Syariah.

The agreement on merger of the three sharia banks was inked on Wednesday as one of the legal bases for merger of the sharia banks that is expected to commence in February 2021.

Merger of the three sharia banks called Bank Sharia Indonesia (BSI) will be one of the largest sharia banks in Indonesia and also the world, with total assets of Rp214 trillion and core capital of Rp20.4 trillion. Related news: Indonesia's sharia financial industry is a sleeping giant: Jokowi
Related news: Sharia banks' merger to catalyze development of sharia economy: OJK

Translator: Dewa Ketut SW/Suharto
Editor: Rahmad Nasution
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