Sunday, August 26, 2012

INDONESIA - BANKING - Bank Mandiri’s Shariah Unit Plans IPO - Bank Mandiri, the country’s largest lender by assets, is considering an initial public offering next year for its Islamic unit, Bank Syariah Mandiri, a top executive has said.

Sunarso, a commercial director of Bank Mandiri, said on Thursday that the preparations for the offering were under way and the IPO was likely for next year.

“The preparations for the share sale, still have to be completed first but I don’t think it will take too long,” he said.

“We want the IPO to help strengthen the capital [of Bank Syariah Mandiri] .”   (source)

Thursday, August 23, 2012

INDONESIA - ARTICLES - Utilization of Zakat as a Fiscal Component in Islamic Economic System

Maksimalisasi Zakat Sebagai Salah Satu Komponen Fiskal Dalam Sistem Ekonomi Islam (Utilization of Zakat as a Fiscal Component in Islamic Economic System)

Azharsyah Ibrahim

State University of Ar-Raniry - Faculty of Law - Ar-Raniry State Institute of Islamic Studies

May 22, 2012

JURISPRUDENSI Jurnal Syari'ah, Januari-Juni 2011

In economics, fiscal policy is defined as the use of government expenditure and revenue collection (taxation) to influence the economy. Governments use fiscal policy to influence the level of aggregate demand in the economy, in an effort to achieve economic objectives of price stability, full employment, and economic growth. Fiscal policy in an Islamic state should have an ideological orientation. This means that fiscal policy in an Islamic economy has to be evolved in the ideological framework of Islam and cannot be value-neutral. This paper aims to comprehensively study the potency of zakah in Indonesia and its potential use as a stabilization device in Islamic economic system. Data for this research are gathered through related-literatures including books, journal articles, internet sites and other related resources. The research found that the potency of zakah in Indonesia is increasing year of year. The Indonesia Magnificience of Zakah calculated that Indonesia has IDR 27,2 trillion in 2010 while Asian Development Bank estimated up to IDR 100 trillion. Thus, Indonesia has very big potency to use zakah as a fiscal component because some part of zakah proceeds could be withheld in an inflationary situation and these funds could be released to increase purchasing power in a period of depressed economic activity.

INDONESIA - CAPITAL MARKETS - Limit of Project Sukuk SBSN set at Rp 1,0 trillion - JAKARTA: The government sets a limit on issuance of Islamic Countries (SBSN) for project financing in 2013 amounted to R1, 0 billion.

Financial Notes and Draft Budget 2013, the government will seek to accelerate impementasi sukuk issuance to finance the project.

"For fiscal year 2013, the government set a maximum issuance SBSN Project Rp1, 0 trillion.

SBSN issuance limit is prepared for a period of 1 year budget, "the government said in a Memorandum of Finance and Budget 2013. (source)

INDONESIA - MULTI FINANCE - Adira Dynamics boosts Syariah performance - JAKARTA: PT Adira Dinamika Multi Finance Tbk will boost the performance of sharia units with a target can contribute up to 15% of the total business in the next 2-3 years.

Willy Dharma Kelvin, President Director of Adira Dinamika Multi Finance (Adira Finance) said that Islamic finance is huge potential in Indonesia, because it has the largest Muslim population in the world.

"But there are still obstacles due to lack of education and socialization of Islamic finance to the public. For that we have a strategy to strengthen the education and promotion of Islamic finance," he said last week.

Subsidiary, PT Bank Danamon Indonesia Tbk has just set up a sharia units (UUS) in June. Through this new business unit, the company is able to do financing (joint financing) with some Islamic banks, including the parent company Danamon Syariah.  (source)

Monday, August 20, 2012

INDONESIA - BANKING - BI to Apply Minimum Down Payment Regulation to Islamic Banks - JAKARTA: After a minimum down payment credit policy applied to conventional banks and multifinance since mid-June, Bank Indonesia will ensure to apply similar regulation to Islamic banking.

Bank Indonesia (BI) Islamic Banking Department Executive Director Edy Setiadi said the preparation of minimum down payment regulation for Islamic Bank needs more time because this type of bank has limited data resources compared to conventional banks.

"The principle is BI also has to make similar regulation for Islamic banks," he said yesterday (8/13).  (source)

INDONESIA - BANKING - BRI Syariah Yogyakarta pedal boot Third Party Funds - SEMARANG: PT Bank Rakyat Indonesia (BRI) Sharia Yogyakarta branch of third-party fund-raising boost by lowering intermediation ratio is relatively high.

Halomoan Marpaung, BRI Syariah Yogyakarta Branch, said one of his side during the concentration task this year is to reduce the ratio of intermediation (financing to deposit ratio / FDR), which has penetrated 123.3% at the end of July.

He explained the reduction in the FDR will be pursued with increasing third-party funds (DPK), especially on savings and current accounts.

"As for our focus on retail deposits or individuals," he told Business Sunday (19/08/2012)(source)

INDONESIA - BANKING - BRI Syariah Yogyakarta Prepare ATM Shuttle Service Fund - SEMARANG: PT Bank Rakyat Indonesia Yogyakarta Branch Sharia fund operates shuttle service (pick up service) during Ramadhan break to ease customer deposit funds into the bank.

Halomoan Marpaung, BRI Syariah Yogyakarta Branch, explaining the fund shuttle services performed by the Branch Office (KCP) Bantul.

"This service is provided to adjust the prime customer transactions at the time of Eid is predicted to experience a surge," he told Business Sunday (19/08/2012)(source)

INDONESIA - REGULATIONS - BI: Bank Syariah Not Treated Special - JAKARTA: Bank Indonesia said it was reviewing the amount of loan to value for the rule of Islamic banking.

Governor of Bank Indonesia (BI) Nasution said the provisions of loan to value (LTV) sharia should not be treated differently from the conventional banking regulations.

"Yes, it should be one of the main reasons it is actually that there be no arbitrage, do not then there is a difference. Should have the same direction. However, whether the latter [the amount] exactly the same, or how, we'll examine is," he said after a ceremony Aug. 17 in the BI, today (17/08/2012).  (source)

INDONESIA - CAPITAL MARKETS - Indonesia to Sell More Bonds Next Year to Plug Deficit - Indonesia, which has been running a budget deficit since the Asian monetary crisis more than a decade ago, plans to sell 11 percent more bonds next year to finance its budget shortfall.

The government plans to raise total net bond sales to Rp 177.3 trillion ($19 billion) next year compared with Rp 159.6 trillion this year, with the country aiming to sell more notes even as the budget deficit is projected to narrow next year.

“The government will sell rupiah bonds and dollar-denominated bonds next year,” the government said in a budget statement.

The document also showed that the government would sell regular and retail bonds in the domestic market.   (source)

INDONESIA - FOREIGN - Affin up on Bank Muamalat Malaysia stake buy talks -KUALA LUMPUR: Affin Holdings Bhd, Malaysia’s smallest banking group by market value, rallied the most in a month after obtaining central bank approval to start talks to buy a stake in the country’s second-oldest Islamic bank.

The stock advanced as much as 2.3 per cent in Kuala Lumpur trading to RM3.56. It pared gains to RM3.54 at 11:50am, poised for its steepest increase since July 18. It was the second-biggest increase in the Bursa Malaysia Finance Index, which climbed 0.3 per cent.

Acquiring a stake in Bank Muamalat Malaysia Bhd may increase Affin’s scale and help strengthen its position in the Southeast Asian nation’s Islamic banking industry, according to a brokerage report by Alliance Financial Group Bhd today. Bank Muamalat was formed in 1999, the second full-fledged Islamic bank set up in the country after Bank Islam Malaysia Bhd.  (source)