Bank Syariah Matahari officially obtained its operational license from the Financial Services Authority (OJK) on June 18, 2025, through Decree Number KEP-39/D.03/2025.

This marks its transformation from a BPR (rural bank) into a BPRS (Sharia rural bank) under the auspices of Muhammadiyah.

The Central Executive Board of Muhammadiyah (PP Muhammadiyah) responded with an official call to action addressed to all levels of the organization, including autonomous bodies and Muhammadiyah's charitable ventures.

“PP Muhammadiyah strongly supports the growth of Bank Syariah Matahari and urges all components of the organization, including ORTOM and AUM,” the letter said.

PP Muhammadiyah Urges Members to Channel Funds into Bank Syariah Matahari

Through Circular Number 124/HIM/1.0/C/2025, signed by Chairman Anwar Abbas and Secretary Izzul Muslimin, Muhammadiyah called on its members to place third-party funds, such as savings and deposits, into Bank Syariah Matahari.

The letter also encouraged members to conduct financial transactions and institutional banking with the new sharia bank.

“This step is believed to bring great benefits to the organization, surrounding communities, and the development of inclusive sharia economic values,” the statement continued.

Origin of Bank Syariah Matahari: From Campus-Linked BPR to BPRS

The establishment of Bank Syariah Matahari began with the conversion of BPR Matahari Artadaya, originally a conventional rural bank linked to Universitas Muhammadiyah Prof. Dr. Hamka (Uhamka), into BPRS Matahari.

“The newly licensed bank from OJK is the result of converting BPR Matahari Artadaya into BPR Syariah Matahari, abbreviated as BSM,” said PP Muhammadiyah Chairman Anwar Abbas.

The bank was developed to support the broader Muhammadiyah effort to establish a sharia-compliant banking institution.

Consolidation Strategy: One Bank, Many Stakeholders

Rather than merging its 17 BPRS, Muhammadiyah opted to transform one into a central entity.

“BPRS Matahari Artha Daya becomes the bank, then the others will join. So, others can hold shares in the new bank. One acts as a magnet. It’s not a merger—it’s a consolidation,” explained Mukhaer Pakkanna, Deputy Chair of the Economic, Business, and Tourism Council of Muhammadiyah.

The consolidation includes capital strengthening. “We’re currently consolidating, including funding.

The plan is for BSM to launch this year. At least IDR 100 billion is needed for Book 1, and then we’ll aim for Book 4,” said Mukhaer.

Financial Platform and Religious Mission: A Dual Role for Bank Syariah Matahari

The bank is seen as part of Muhammadiyah's broader religious and economic mission.

“Placing third-party funds such as savings and deposits, using financial services, and managing institutional transactions through Bank Syariah Matahari,” said Anwar Abbas in the appeal.

He called on all Muhammadiyah members to join the socialization effort and to actively support the bank’s development in their regions.

“This bank is expected to be a means of economic independence for the people and a vehicle for dakwah in the financial sector,” Anwar said.

Although grassroots members have pushed for the creation of a full-fledged Sharia Commercial Bank (BUS), PP Muhammadiyah currently has no plan to establish one.

“Setting up a BUS is not yet planned, although internal demand is high,” he said.

He also confirmed that OJK has reached out to suggest the consolidation of Muhammadiyah’s BPRS into a stronger unit.

“In terms of capital, networks, and human resources, we are not too concerned. What needs more attention is the IT issue,” he said.

PHOTO: MUHAMMADIYAH

This article was created with AI assistance.