Dubai, 27 May 2022 – PT Perusahaan Pengelola Aset (Persero) (“PPA/Company”) received two international awards from the Islamic Finance News (IFN) Awards Deals of the Year 2021, namely “IFN Restructuring Deal of The Year 2021” and “IFN Indonesia Deal of The Year 2021”. These two awards are international public recognition of the innovative asset swap scheme in the management of low-quality assets at PT Bank Muamalat Indonesia Tbk (Bank Muamalat) worth Rp10 trillion.

The^16th IFN Awards Ceremonies awards night was held at Conrad Dubai Hotel on Thursday (26/5). The event was attended by more than 300 participants from around 70 global institutions. The IFN Deals of the Year category won by PPA is an award to companies that have the most innovative and significant impact transactions that are independently assessed and decided by the IFN Awards Advisory Board.

PPA President Director Yadi Jaya Ruchandi said, “The award provides motivation for us as the only National Asset Management Company (NAMCO) in Indonesia to become a trusted partner in non-performing loan (NPL) management. We would like to thank the IFN Awards Advisory Board for placing the PPA as the best among the other best candidates from Egypt and Malaysia.”

In its official statement, IFN stated that the scheme of settlement of low-quality assets with productive assets (asset swaps) used by the PPA is key in turnaround and strengthening efforts at Bank Muamalat. This inventive approach is expected to facilitate the completion of NPL for the banking industry in Indonesia at large. Not only in Indonesia, the solution is also considered to be able to help other developing countries that face the same problem.

For information, in 2021, PPA successfully completed the management of low-quality assets of Bank Muamalat Indonesia worth Rp10 trillion. With the acquisition of low-quality assets by PPA, the first Islamic bank in Indonesia is again a good bank, so it is ready to be developed.

In the transaction, PPA also assisted the Hajj Financial Management Agency (BPKH) in the process of becoming the majority shareholder which is part of strengthening Bank Muamalat’s capital structure. Currently, BPKH is the majority shareholder of Bank Muamalat with 82.65% ownership.

Yadi explained that the PPA uses an asset swap scheme based on thorough due diligence and measurable risk management in collaboration with a number of independent consultants. PPA also works with Law Enforcement Officials (APH) to get optimal recovery.

“The management of NPL Banking PPA is expected to be a solution to help banking performance and present a new asset class option for investors,” concluded Yadi.