Bank Rakyat, PT Bathi Rakyat Abadi sign MoU to strengthen Shariah-compliant finance in Indonesia

By Borneo Digest On Aug 19, 2025

JAKARTA, Aug 19 – Malaysia’s Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat) on Tuesday signed a memorandum of understanding (MoU) with Indonesia’s PT Bathi Rakyat Abadi to expand collaboration in Shariah-compliant financial services, including Ar-Rahnu (Islamic pawnbroking), while supporting the growth of the halal business sector in Indonesia.

The agreement was described as a significant step in strengthening financial and cooperative ties between Malaysia and Indonesia, aimed at enhancing financial inclusion and boosting the cooperative movement across the Nusantara region.

Malaysia’s Minister of Entrepreneur Development and Cooperatives, Datuk Ewon Benedick, said the MoU should not remain symbolic but instead pave the way for greater initiatives that benefit both countries.

“This cooperation reflects the close relationship and shared aspirations of Malaysia and Indonesia. I hope it will lead to initiatives that benefit customers in Indonesia, Indonesians in Malaysia, and Malaysians in Indonesia,” he said at a press conference after the signing ceremony at Hotel Mulia Senayan in Jakarta.

Ewon added that Malaysia and Indonesia share deep cultural, historical and economic aspirations, with the cooperative movement long serving as a driver of social empowerment and collective economic progress.

Bank Rakyat Chairman Datuk Mohd Irwan Mohd Mubarak said the partnership aligns with the bank’s aspiration to expand its international network and strengthen its position in cooperative finance.

“This initiative opens wide opportunities, particularly in Ar-Rahnu services. With the expertise of Rakyat Management Services (RMS) Sdn Bhd, Bank Rakyat will provide guidance on Shariah-compliant operations while supporting halal business growth and sustainable development,” he said.

The MoU is seen as part of a broader agenda by both nations to advance Islamic finance, deepen economic ties, and promote financial inclusion across the region.