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Jakarta, 15 September 2021

PT PPA, BPKH, and Bank Muamalat Signed Master Restructuring Agreement

Jakarta, 15 September 2021 – In order to implement one of the business pillars, PT Perusahaan Pengelola Aset (Persero) (PT PPA) with support from the Ministry of State-Owned Enterprises (SOEs) as The Shareholder manages the low-quality assets of Bank Muamalat Indonesia Tbk. Based on that, PT PPA together with Bank Muamalat and Hajj Financial Management Agency (Badan Pengelola Keuangan Haji/BPKH) have signed a Master Restructuring Agreement (MRA).

The MRA signing ceremony was conducted between the President Director of PT PPA Yadi Jaya Ruchandi, the Managing Board Member of BPKH A Iskandar Zulkarnain, and the President Director of Bank Muamalat Achmad K Permana which directly witnessed by the Minister of SOEs Erick Thohir in the Ministry of SOEs Building, Jakarta, Wednesday (15/9).

This MRA organizes and documents the whole stages and series of transactions in managing Bank Muamalat’s low-quality financing assets in order to strengthen Bank Muamalat’s capital. The MRA also regulates the legal relations that forms the basis for the implementation of transactions that will be carried out separately in the future, including, the issuance and purchase of sharia-based instruments (Sukuk), and the agreements of low-quality financing assets management belonging to Bank Muamalat by prioritizing the principles of Good Corporate Governance and based on the applied regulations.

Erick as The Minister of SOEs in his remarks stated that this collaboration was a mandate from the Vice President of the Republic of Indonesia, KH Ma’ruf Amin, who wanted Bank Muamalat to be part of sharia economic ecosystem in Indonesia. Erick also expressed his gratitude to OJK, BPK RI, the Attorney General’s Office, Bank Muamalat, the Sharia Economic Community, and the ranks of Ministry of SOEs, as well as BPKH who supported the realization of this initial step of sharia cooperation.

“Thank you to everyone who has supported and believed in Bank Muamalat’s ability to transform into the bank that people aspired to be. And surely, we are eager to remain a part of Bank Muamalat, for instance, in sharing expertise and benchmarking. Also, how Bank Syariah Indonesia that we have and Bank Muamalat can go hand in hand,” said Erick.

Erick hopes that the collaboration in the sharia economic ecosystem does not stop here as there are some targets to achieve in the future.

“We also have a goal that we are striving towards, we are looking for a possibility to invest in the building of Hajj Houses in Mecca that we never had so far. We are always open for discussion, and hopefully the Ministry of SOEs and BPKH could go along together. Insha Allah this collaboration could move forward not only for today, but in the near future,” said Erick.

The President Director of PT PPA Yadi Jaya Ruchandi stated, “Thank you for the support from the Ministry of SOEs as the Shareholder in PT PPA to carry out its role as the manager of low-quality assets of Bank Muamalat, allowing Bank Muamalat to focus on sustainable business growth. This step is in line with the expansion of PT PPA’s investment strategy to become the National Asset Management Company (NAMCO).”

According to Financial Services Authority, Indonesia’s Islamic Banking market share in 2020 has only reached 6.51%, thus there is a room to grow in the future. Bank Muamalat, as the first sharia bank in Indonesia, has a significant role in development of the sharia economy in Indonesia.

As we all know, the pandemic Covid-19 has a significant impact towards the national economy, particularly in the banking sector. By the signing of MRA, Bank Muamalat believes that it can improve its financial performance.

The President Director of Bank Muamalat Achmad K Permana said, “The synergy between Bank Muamalat, BPKH, and PT PPA is part of efforts to strengthen Bank Muamalat’s capital structure through management of the financing assets. We thanked all parties for the support, especially OJK as the regulator as well as the Ministry of SOEs. Insha Allah, Bank Muamalat will be able to expand with an even better business model in the future as one of the locomotives of Islamic Banking as well as advance the service of Hajj pilgrimage in Indonesia.”

In accordance with Law No. 34 of 2014 regarding Hajj Financial Management, Bank Muamalat is one of the Bank Receiving Deposits for Hajj Pilgrimage (BPS-BPIH), which is registered in the Integrated Hajj Information and Computerization System (SISKOHAT) of the Ministry of Religious Affairs of the Republic of Indonesia.

The Managing Board Member of BPKH A Iskandar Zulkarnain stated, “BPKH supports Bank Muamalat to improve the Hajj services for Indonesians. BPKH is fully committed to support the implementation of this transactions through strategic investment in Bank Muamalat with putting forward the security, prudence, and professionalism in order to provide greater value for Hajj pilgrims.”