JAKARTA -- Indonesia's three state-owned banks will merge their sharia banking units to create one of the country's biggest lenders, as the government tries to kick start a sector that has stagnated despite a vast Muslim population.
Bank Rakyat Indonesia, Bank Mandiri and Bank Negara Indonesia have signed a conditional merger agreement for their Islamic banking units, according to a filing to the stock exchange on Tuesday, with BRI's sharia unit bearing the name of the entity.
