Bank Jago Syariah Ready to Follow Spin Off Rules from OJK: 'We Become Good Children'

Dream - Bank Jago Syariah, the Sharia Business Unit (UUS) of Bank Jago, is ready to comply with the regulations of the Financial Services Authority (OJK) regarding spin off or separation from the parent company into its own entity.

Head of Sharia Business Development and Product Solution at Bank Jago, Agung Lesmana, said Bank Jago Syariah will comply with regulator rules such as OJK and Bank Indonesia.

"Yes, we are committed, in accordance with OJK regulations. We become good children and comply with the provisions of OJK," he said to the media in Jakarta, Wednesday, August 9, 2023.

It is known that the Financial Services Authority (OJK) has launched OJK Regulation (POJK) 12/2023 regarding the spin off of the Sharia Business Unit. In this regulation, the Sharia Business Unit (UUS) is required to spin off no later than 2026.

The derivative regulation in Article 3 states that the capital of the business opening funds of the UUS is determined and maintained at a minimum of Rp1 trillion on December 31, 2024.

This can be done in two stages, Rp500 billion on December 31, 2023, and Rp1 trillion on December 31, 2024.

Currently, Bank Jago Syariah has capital funds amounting to Rp500 billion and will strive to increase capital to Rp1 trillion by 2024.

"Currently, from shareholders, we will add capital in accordance with the provisions of 2024, where capital must be Rp1 trillion. Currently, we have Rp500 billion, and later we will add according to the regulations," Agung continued.

Agung also stated that Bank Jago Syariah is optimistic about meeting OJK regulations according to the deadline. Agung also assessed that with the potential of the large Sharia industry, it is possible for Bank Jago Syariah to acquire or merge with other banks.

"I see a great Sharia potential, and there is a possibility that we will acquire or merge with a bank, that option is open. But we cannot do it now... We are optimistic about fulfilling what OJK wants," he explained.

Bank Jago Syariah, which is a digital bank, will also consider further operations related to technology when it becomes a Sharia Commercial Bank (BUS).

"According to the regulations, we can leverage with the provisions of the parent bank, whatever can be leveraged, we will leverage. Such as IT, Technology, Operation," he said.