BSI Case Opens New Opportunity for Conventional Banks in Aceh

By Editorial Team 25/05/2023
Summary

The Aceh government plans to revise its Qanun or Sharia regulation No. 11/2018 on Sharia Financial Institutions (LKS), allowing conventional banks to operate in Aceh.

The spokesperson for the Aceh Government Muhammad MTA confirmed that the revision process is currently underway in the Aceh House of Representatives (DPRA). “Aceh government supports the plan to amend the LKS Qanun,” he said on Monday.

Muhammad further explained that the existing Islamic banking infrastructure has failed to address the evolving dynamics and socio-economic challenges, particularly concerning national and international financial transactions for businesses in Aceh. The revised Qanun will address customer grievances by offering compensatory measures. “In addition, it will reintroduce the possibility for conventional banks to resume operations in Aceh,” he continued.

On May 23, Vice President Ma'ruf Amin announced that the government had presented the proposal for the Qanun amendment to the Aceh Government. However, Ma'ruf cautioned that both Islamic and conventional banks had encountered difficulties in the past, emphasizing that disruptions are not exclusive to Islamic banks or BSI (Bank Syariah Indonesia).

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