Two Major Banks Ready to Spin Off Sharia Units, Another in Early Talks
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JAKARTA, Investortrust.id — Indonesia’s Financial Services Authority has received formal spin-off plans from PT Bank CIMB Niaga Tbk and PT Bank Tabungan Negara Tbk, or BTN, for their Sharia business units, while another major bank is still conducting internal assessments before submitting its proposal.
Head of Banking Supervision at the Financial Services Authority, Dian Ediana Rae, said both banks are expected to complete the separation process by late 2025 or within the first quarter of 2026, in line with the mandate of Regulation No. 12 of 2023 on Sharia Business Units.
“All preparatory processes are expected to be completed within the target timeline, no later than the end of 2025 or the first quarter of 2026,” Dian stated in a written response during the press conference on the Financial Services Sector Assessment and OJK Policy Results for September 2025, on Saturday, Nov 1, 2025.
Dian added that, in addition to CIMB Niaga and BTN’s Sharia Business Units—both expected to operate as independent Sharia commercial banks (Bank Syariah Nasional or BSN)—another bank is currently conducting internal evaluations on a possible spin-off but has not yet filed its plan.
“This corporate action needs to be prepared very carefully,” Dian stressed, noting that the formal applications from the banks will be reviewed and processed in accordance with existing regulations.
The spin-off policy, according to OJK, enforces the implementation of the Financial Services Authority Regulation (POJK) No. 12 of 2023, which requires Sharia business units with total assets exceeding Rp 50 trillion or representing more than 50% of their parent bank’s total assets to separate into full-fledged Sharia banks.
Dian emphasized that the spin-off initiative aims to strengthen institutional capacity and competitiveness within Indonesia’s Islamic banking industry, enabling it to respond effectively to increasingly complex market dynamics.
“The ultimate goal is to build a stable and competitive national Sharia banking industry,” he said.