Six banks may change status

JAKARTA (JP): Six commercial banks have applied to change their status into interest-free Islamic banks, Bank Indonesia director Soebardjo said here on Thursday.

He said that the six banks include Bank Mega, BSB, Bank Ratu, Bank Intan, Bank IFI and Bank Nusa Nasional.

"The six banks have informally expressed their interest in changing their status to become Islamic banks," the central bank's director was quoted as saying by Antara news agency.

Several years ago, the government introduced a concept on Islamic banks, which base their operations on a profit-sharing system both with their depositors and borrowers. Bank Muamalat is the only bank which has so far operated under the so-called Islamic banking ethos.

According to Soebardjo, banks which operate under the Islamic system are relatively safer than the conventional banks, especially in facing any economic turmoil.

He said the interest-free banks are more resistant in facing the high interest rate environment, which has put most of the country's banks on the brink of collapse. (29)