Sunday, October 23, 2011

INDONESIA - BANKING - Sharia banking industry sees 46.55% rise in assets

en.bisnis.com - JAKARTA: Sharia-based banking industry in Indonesia had its total assets increase 46.55% at end-September from a year ago. Total assets grew to IDR126 trillion from IDR85.97 trillion at end of September 2010.

The figure consists of IDR123 trillion from full-fledged Sharia General Banks (BUS) and Sharia Business Units (UUS), IDR3 trillion from Sharia Credit Banks (BPRS), said Bank Indonesia Director Mulya Siregar. (source)


“I expect total assets of sharia banks to increase by IDR5 trillion a month. So, our moderate target of sharia banks’ assets can reach IDR141 trillion,” he said after attending a meeting with business delegates from United Arab Emirates (UAE).

Based on data from the central bank, assets of sharia banks reached IDR100.25 trillion at end of 2010. It is predicted that the figure will grow 40.63% to IDR141 trillion.

In the meantime, Mulya mentioned that the outstanding credit of sharia banks was IDR94 trillion as of September. Most credit was disbursed through BUS and UUS (IDR92 trillion).

The outstanding credits grew 49.32% from IDR62.94 trillion as of September 2010. At that time, BUS and UUS recorded outstanding credits of IDR60.97 trillion while BPRS had IDR1.97 trillion.

Credit disbursement is predicted to increase by IDR3 trillion a month, making total outstanding of IDR100 trillion at end of the year.

Assuming the target disbursement is reached, total outstanding credits will grow 42.36% from IDR70.24 trillion at end of 2010.

Mulya added that credit disbursement in September consisted of murabahah (54%), mudahabah and musyarakah (30%) and other agreements including ijarah.

Sharia investment

In another development, the central bank revealed that investors from UEA are interested in supporting the business of sharia banking in Indonesia because the country has the world's largest Muslim population as the potential market.

Bank Indonesia became the host during the visit of investors from UAE for two days since Wednesday. The visitors include representatives from four banks, two of which are interested in making investment here.

However, Mulya declined to mention the name of those investors and their specific investment plan in Indonesia.

“There are many options, such as buying shares of the existing banks, opening branches, and building new banks. It is under progress,” he said.

Consulate General of Indonesia for UAE Mansyur Pangeran mentioned that one of those banks planning an acquisition here is Abu Dhabi Islamic Bank.

A source from the consulate said that Al-Hilal Bank is also interested in investing in Indonesia. (T04/NOM)

Source : http://en.bisnis.com/articles/sharia-banking-industry-sees-46-dot-55-percent-rise-in-assets  - Oct 21, 2011

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