BTN Approves Spin Off as Bank Syariah Nasional Formally Established

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JAKARTA, Investortrust.id — The state controlled mortgage bank PT Bank Tabungan Negara Tbk or BBTN, approves the separation of its sharia banking unit on Tuesday Nov 18 2025 in Jakarta as shareholders authorize the transfer of all rights and obligations to Bank Syariah Nasional, a newly established entity that emerges as one of the country’s largest Islamic banks by assets.

The decision marks a major restructuring in Indonesia’s Islamic finance landscape as Bank Syariah Nasional begins operations with assets equal to Rp 70 trillion, making it the second largest sharia commercial bank in the country by scale, after PT Bank Syariah Indonesia Tbk. 

BTN Chief Executive Nixon LP Napitupulu said the establishment of Bank Syariah Nasional resulted from combining the lender’s sharia business unit with Bank Victoria Syariah, creating a platform he described as ready for full independence.

He said the total assets met the threshold stipulated in the Financial Services Authority Regulation Number 12, 2023 Article 59, which required conventional banks to separate their sharia units once certain asset criteria were fulfilled.

“Therefore, as a conventional bank, the company must carry out the separation or spin off of the sharia business unit,” Nixon said during the Extraordinary General Meeting of Shareholders held at BTN Tower in Jakarta on Tuesday Nov 18 2025.

Nixon explained that the spin off considered the positive outlook for Indonesia’s sharia economy, noting that a standalone sharia bank would strengthen BTN’s role in the national financial ecosystem and respond to a more supportive regulatory climate.

He cited OJK Regulation Number 16, 2022, which encouraged sharia units to transform into independent sharia commercial banks, enabling tighter synergy between parent institutions and their Islamic subsidiaries.

“Thus, the synergy between the sharia bank and its parent can be strengthened to improve product quality and services,” he said.

“Post separation business operations will also become more effective and efficient,” he added.

Nixon said BTN’s sharia unit delivered strong performance in the past five years, with assets growing at a compound annual rate of 16.36 percent from 2020 to 2024.

Third party funds increased 20.12 percent over the same period, and the unit’s contribution to BTN’s total assets rose from 9.14 percent in 2020 to 12.90 percent in 2024.

“This consistent growth shows that the sharia business unit is ready to stand independently as a full fledged sharia commercial bank,” he said.

 The final phase of the spin off will be confirmed at Bank Syariah Nasional’s Extraordinary General Meeting of Shareholders on Nov 19 2025, a day after BTN completes its approval process.

Following the merger components, the total assets of Bank Syariah Nasional will reach Rp 71.3 trillion.

BTN has prepared a group principle guideline to serve as a governance framework that aligns policies between the parent company and its new sharia subsidiary.

The guideline aims to ensure consistency and standardization, improve accountability, reinforce compliance, strengthen efficiency, encourage synergy, and facilitate institutional adaptability.

Nixon said Bank Syariah Nasional would carry out its 2025–2029 corporate plan, focusing on five strategic priorities that include sustainable sharia based financing, stronger risk management with lower non performing financing, acceleration of low cost funding through digital innovation, expansion of fee based income, and broader access to housing finance for low income households and millennials.

“With the approval of this separation, all rights, obligations, and responsibilities of BTN’s sharia business unit will transfer to Bank Syariah Nasional on the effective date of the spin off, which will be determined soon,” he said.