Saturday, December 17, 2011

INDONESIA - BANKING - BMI and SMF signed a mortgage agreement

Jakarta (14/12)- The demand of mortgage is pretty high from retail banking consumers. It is predicted that in 2012 the demand of mortgage will increase. This is a good opportunity for Islamic banks to captive the mortgage market, such as Bank Muamalat Indonesia (BMI). (source)


BMI is now collaborated with PT Sarana Multigriya Finansial (SMF) to expand its shariah mortgage for retail customers. The term of agreement is for 3 years, with total financing amount of IDR 100 Billion.

The MOU was signed by Corporate Banking Director BMI Luluk Mahfudah and the President Director of SMF Raharjo Adisusanto, witnessed by Retail Banking Director of Bank Muamalat Adrian Gunadi at BMI Head Office in Jakarta, Wednesday (14/12).

"this financing scheme is for  retail customers with installment term of 15 years, with minimal financing amount of IDR 50 million and  maximum financing amount of IDR 250 million. Yet, for housing renovation the financing amount is under  IDR 25 million with installment term of 5 years”, explained Luluk, during the MOU signing ceremony.

Moreover Luluk said that the agreement is under the contract of Mudharabah Muqayyaddah, whereas the funds from SMF will be managed by BMI thru mortgage distributions. In this kind of contract SMF as the investor has the right to determine which sector that the funds to be invested in order to gain mutual benefit.

Furthermore Luluk said "the mortgage financing has 2 alternative Islamic contract: by Diminishing partnership,  (musyarakah mutanaqisah) for new housing, or take over financing from the previous owners or sale with cost and profit (murabahah) which has a wider spectrum for buying a house under a purchase order, renovation and others."

For the third quarter of  2011, Islamic mortgage has contributed for 28% or IDR 3.6 trillion out of retail financing of BMI which was IDR 11.94 Trillion, while the total financing of the first purely shariah bank in Indonesia is IDR 20.97 trillion.(Ul)

Source : http://www.pkesinteraktif.com/berita/bank/3104-bmi-and-smf-signed-a-mortgage-agreement.html  - Dec 15, 2011

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