Bank Muamalat commits Rp 1 trillion loan for NU

Jakarta, NU Online
The first sharia lender in Indonesia, Bank Muamalat,  has committed to channeling a Rp 1 trillion (US$ 74.97 million) loan to the biggest Muslim organization, Nahdatul Ulama (NU).

NU chairman Said Aqil Siraj said distribution of the funds would be arranged in a discussion with NU’s committee. In exchange for the loan, the NU would mobilize its funds in conventional banks to the Islamic bank.

"We have 22,000 Islamic boarding schools, the big one such as Sidogiri in East Java has Rp 3 trillion  and 15,000 students," he said after the signing of a memorandum of understanding (MoU) between the NU and Bank Muamalat on Monday in Jakarta.

Bank Muamalat president director Endi Abdurrahman said working with Islamic organizations such as the NU would help the lender increase its current and savings account (CASA) from 42 percent in 2015 to 45 percent in 2016.

"Last week we signed a similar MoU with Muhammadiyah, for a commitment of Rp 1 trillion. The big three [Islamic organizations] the NU, Muhammadiyah and Hidayatullah will help us meet our CASA target," he said.

Bank Muamalat was established in 1991 by the Indonesian Ulema Council (MUI) and the government. At that time, according to Said, the NU was forbidden from being involved in economic activities initiated by the government’s sponsored institution. (Masdar)