BTN’s President Director,Nixon LP Napitupulu,revealed that while the bank currently controls all of BVIS’s shares,they are in talks to bring in one of Indonesia’s largest Islamic community organizations as a co-owner. “While we are still 100%. Later, if there are no problems, we are planning to invite one of the large Islamic organizations in Indonesia to join in owning (shares),” Nixon stated during a meeting at JIEXPO Kemayoran in Central Jakarta on Monday, January 20, 2025.
Nixon emphasized that discussions with the potential partner are ongoing, and details about the organization remain confidential. “We can’t say anything yet. We are still in the process of talking. But in the initial stages,BTN used to control 100% (of the shares),” he added.
The acquisition process began after BTN signed a Conditional Sales Purchase agreement (CSPA) with BVIS shareholders on January 15, 2025. The agreement includes the transfer of 100% of BVIS shares from its current shareholders: PT Victoria Investama Tbk, PT Bank Victoria International Tbk, and Balai harta Ininggalan (BHP) Jakarta.
According to the publicly disclosed Takeover Plan Summary, Victoria Investama holds the majority stake in BVIS at 80.18%, followed by Bank Victoria International with 19.80% and BHP Jakarta with a minimal 0.0016%. The acquisition, valued at IDR 1.06 trillion, will be financed through BTN’s internal resources, aligning with the bank’s broader business strategy.
This strategic acquisition marks a significant milestone for BTN as it aims to expand its footprint in the rapidly growing Islamic banking industry. by integrating BVIS into its portfolio, BTN is poised to offer a more robust range of Sharia-compliant financial products and services, catering to the increasingly diverse needs of its customers.
What are the potential benefits of BTN’s acquisition of BVIS for Indonesia’s Islamic banking sector?
Strategic Expansion in Islamic Banking: BTN’s Acquisition of Bank Victoria Syariah
In a move set to reshape indonesia’s Islamic banking landscape,PT Bank Tabungan Negara (BTN) has announced its acquisition of PT Bank Victoria Syariah (BVIS). To delve deeper into this strategic growth, we sat down with Mr. ahmad Faisal, Senior Vice President of Islamic Banking at BTN, to discuss the implications, challenges, and opportunities of this major transaction.
Could you share the rationale behind BTN’s decision to acquire Bank Victoria Syariah?
“Absolutely. At BTN, we’ve been closely monitoring the rapid growth of the Islamic banking sector in Indonesia. With the acquisition of BVIS, we’re not only expanding our footprint but also enhancing our ability to offer Sharia-compliant financial products. This aligns with our broader strategy to cater to the diverse needs of our customers and tap into the growing demand for Islamic banking services.”
What makes BVIS an ideal partner for BTN in this venture?
“BVIS has a strong foundation in Islamic banking and a customer base that complements our own. Their expertise and infrastructure will allow us to integrate seamlessly and accelerate our growth in this sector. Additionally, this acquisition positions us as a key player in the industry, enabling us to compete more effectively.”
BTN currently owns 100% of BVIS’s shares. are there plans to bring in other stakeholders?
“Yes, we’re in discussions with one of indonesia’s largest Islamic community organizations to possibly co-own shares in BVIS. While BTN holds full ownership for now, we believe that collaboration with a respected Islamic association will strengthen our credibility and deepen our connection with the community.”
The acquisition is valued at IDR 1.06 trillion. How will BTN finance this transaction?
“The acquisition will be funded entirely through BTN’s internal resources. This reflects our financial strength and commitment to this strategic move.We’ve ensured that this transaction aligns with our long-term business goals without compromising our financial stability.”
What challenges do you foresee in integrating BVIS into BTN’s operations?
“Integration is always a complex process, especially in banking. We’re focused on aligning our systems, processes, and cultures to ensure a smooth transition. Our priority is to maintain uninterrupted services for our customers while leveraging the strengths of both institutions.”
How does this acquisition fit into the broader vision for Indonesia’s Islamic banking sector?
“Islamic banking is a cornerstone of Indonesia’s financial future, and BTN is committed to playing a pivotal role in its development. By expanding our Islamic banking portfolio, we’re not only meeting customer demand but also contributing to the nation’s economic growth and financial inclusivity.”
What’s next for BTN in the Islamic banking space?
“We’re just getting started. In the coming months, we’ll be rolling out new Sharia-compliant products and services, enhancing our digital capabilities, and strengthening our outreach.This acquisition is a milestone, but it’s also a stepping stone to even greater achievements.”
What message would you like to share with customers and stakeholders?
“We’re excited about this new chapter and grateful for the trust placed in us. Our customers and stakeholders can expect enhanced services, innovative solutions, and a steadfast commitment to ethical banking.Together, we’re building a brighter financial future.”
In your opinion, what role can Islamic banking play in addressing global financial challenges?
“islamic banking, with its emphasis on ethical principles and risk-sharing, offers a unique model for addressing today’s financial challenges. It promotes inclusivity, stability, and sustainability. As the world grapples with economic uncertainties, Islamic banking can provide a viable choice that aligns with both financial and ethical goals. What are your thoughts on this? We’d love to hear from our readers in the comments.”