KUALA LUMPUR – Malaysians are among the international players interested in investing in an Indonesian bank tied to Islamic groups, the Nordic Counter Terrorism Network and International Association for Counterterrorism and Security Professionals (IACSP-NCTN) 2021 journal report reveals.
The groups, known as Nahdlatul Ulama (NU) and Muhammadiyah, are non-radical and form the Indonesian bank’s customer base, according to the report.
NU’s goal is to spread the message of a tolerant Islam that rejects extremism and jihad. However, despite its noble aims, there still exists conservative factions in the group.
Meanwhile, Muhamuddiyah promotes the upward mobility of Muslims towards a modern community while promoting religious tolerance.
Nevertheless, the Indonesian bank, which was not named by IACSP-NCTN, encountered issues with Indonesia’s Financial Services Authority (OJK) due to a lack of capital.
“One of Bank **’s customer bases comprise Muslims, most of whom are members of NU and Muhamaddiyah, the two largest religious organisations in Indonesia.
“These are non-radical groups. Of course, this is also a dilemma for OJK (Financial Services Authority) and the government because it deals with political issues, as these organisations are key social and political stakeholders.
“So, OJK has to really be careful with anything involving Bank ** as the public may push back against unpopular policies,” the report cited a source, referred to as a senior banker, as saying.
The report also quoted the source as saying that the Indonesian government and OJK have made efforts to redeem the bank.
However, along with the name of the bank, the study has redacted the name of an individual or company mentioned by the source.
An excerpt from the report reads: “I am sure that the government and OJK will do everything they can to save ***, including by reducing *** Bank shares.
“We have consulted with Parliament a lot and it seems that no one has objected to this. A few months ago, the government, through the State-Owned Enterprises Ministry, directed state-owned banks to examine the possibility of an acquisition of Bank **.
“This happened after the acquisition by *** failed. There are at least three banks that have carried out an assessment of the possibility of a capital injection and/or a takeover of shares.
“From the outside, I was informed that there are a number of interested investors, from Singapore, Malaysia and the Middle East, as well as Qatar and the UAE.”
The source also said that banks will not grow in the current financial ecosystem if they do not have sufficient capital.
Further, it was stated that the bank has been subject to giving out non-performing loans, meaning borrowers have defaulted and are not able to make scheduled payments. – The Vibes, June 30, 2021
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