INDONESIA - CAPITAL MARKETS - Corporate Sharia bond issues are at low level, Bapepam-LK says

JAKARTA: Poor socialization is considered to be the reason of low issuance of corporate Sharia bonds this year. Currently there is only Bank Sulselbar issuing sukuk Mudharabah.

Sukuk Bank Sulselbar itu adalah sukuk pertama senilai Rp100 miliar dan akan jatuh tempo pada 12 Mei 2016.
This sukuk Mudharabah is the first IDR100 billion-worth sukuk and matures on 12 May 2006. (source)

The bank was once named Bank Sulsel and then changed its name to Bank Sulselbar on 26 May 2011 after Sulawesi Baratu Provincial government serves as largest shareholder.

So far, there has no regulation impeding listed companies in issuing Sharia based corporate bond or sukuk, said Head of Corporate Financial Assessment Bureau at Capital Market and Financial Institution (Bapepam-LK), Anis Baridwan.

“We think it due to low socialization as the regulation has been eased. Double tax policy is no longer imposed as well. In short, there is no obstacle for listed companies,” he said on the sideline of Monthly seminar on Sharia Economy held by Sharia Economic Society yesterday.

One of the forms of financial deregulation is listed companies are not obliged to secure statement of eligibility from National Sharia Board of Indonesian Ulema Council as Bapepam-LK has coordinated with this body.

Listed companies do not have to face complicated bureaucracy in issuing the Sharia-based bonds. The reluctance to issue this investment instrument is due to relatively high yield of government retail bond. (T02/NOM)

Source : http://www.bisnis.com/articles/corporate-sharia-bond-issues-are-at-low-level-bapepam-lk-says  - Nov 16, 2011