A consortium of local and global investors, led by aviation expert and businessman Ilham Habibie, is set to acquire a majority stake in Indonesia's oldest shariah-compliant lender, Bank Muamalat, for Rp 2 trillion ($132 million). (Antara Photo/Lukisatrio)

World Bank's IFC Eyeing Shares of Local Islamic Lender Muamalat: OJK


JANUARY 25, 2016

Jakarta. International Finance Corporation, the private financing arm of the World Bank Group, is eyeing a stake of Indonesia's first Islamic lender Bank Muamalat Indonesia, according to a government official.

Mulya Siregar, deputy commissioner in charge of monitoring banks at the Financial Services Authority (OJK), said that Bank Muamalat will soon hold a rights offering to set a path for IFC's entry into the lender.

IFC currently has shares in four local lenders, including a 20 percent stake in Bank Mayora, as well as minority stakes in Bank Andara, Bank KEB Hana and Bank Tabungan Pensiunan Nasional.

However, The Jakarta Globe was unable to contact IFC for confirmation of the plan at the time of writing.

At the same time, Mulya said Bank Muamalat is also anticipating additional capital through the rights offering from its controlling stakeholder, Islamic Development Bank, who is seeking to bulk up its capital.

"IFC has a plan to enter Bank Muamalat and IDB is planning to increase the capital," he said over the weekend. "The additional capital was included in Muamalat's business plan this year."

Mulya declined to disclose the specific value of the plan, however the OJK previously revealed a plan for Bank Muamalat to upgrade to a tier-three lender with a core capital of at least Rp 5 trillion ($360.23 million).

Bank Muamalat president director Edny Abdurrahman, declined to confirm the plan, noting that the company is still focusing on improving its non-performing financing ratio instead of pushing for growth.

As of September last year, Bank Muamalat booked approximately Rp 3.55 trillion in core capital with a capital adequacy ratio of 13.67 percent. The Islamic lender's gross non-performing financing ratio stood at 4.64 percent by the third quarter of last year, while net non-performing financing ration stood at 3.49 percent.