State-Owned Enterprises Minister Erick Thohir said on Tuesday that the ministry had signed a conditional merger agreement to join the publicly listed Bank BRISyariah, a subsidiary of Indonesia largest lender by asset Bank Rakyat Indonesia, with its peers Bank Syariah Mandiri, the unit of Bank Mandiri, and Bank BNI Syariah, a subsidiary of Bank Negara Indonesia.

The three Islamic banks that will be merged have stated that they are ready to work together to advance the Islamic economy. The strengths and strengths of each entity will be integrated into the merged bank which is planned to be formed in February 2021. PT Bank BRI Syariah as the surviving entity of Bank Syariah Mandiri.

the mergers of the three Islamic banks is intended so that Indonesia, which ia a country with the larges Muslim population in the world, has the larges Islamic bank in the country a globale scale. in addition, this merger is expected to further increase the economic and financial pontial of syariah which is growing positively even in the mindst of a pandemic.

In general, Islamic banking has the potential to grow and develop amidst the cahallenges of the macro economy and financial industry due to pandemic. Growth opportunities are reflected in the maintened positiv performance of the syariah banking industry, particularly BRI Syariah, since the last few years.

BRI Syariah managed to record a 229.67 percent jump in net profit in the first half of this year to Rp 117.2 billion. BSM also record a 30.53 percent increase in profit to RP 718.64 billion. Erick expected the marger to help the goverment in achieving its goal of making Indonesia the global center for Syariah economic and finance.

Source : https://jakartaglobe.id/business/erick-thohir-unveils-merger-plan-to-establish-indonesias-largest-islamic-bank-with-145b-assets