PUBLICATIONS - List of publications of Irawan Febianto

Irawan Febianto was so kind to put a list of the publications related to Islamic finance at our disposal.

We will keep you updated on future release.  For the list, see hereunder.

TAKAFUL - Sun Life expects 15% growth this year

JAKARTA: PT Sun Life Financial Indonesia, the local unit of Canadian insurance company Sun Life, plans to boost its total premium income this year by doubling the number of its sales agents from 4,110 and opening 10 sales offices throughout the country to add to the 38 existing offices.

President director Bert Paterson said Friday that to achieve the target, last year’s whole year figure was not available, but during the January-September period, Sun Life’s total premium topped Rp 500 billion (US$55.03 million), a 4 percent increase from Rp 480 billion during the same period in 2009. (source)

MICROFINANCE - Southern Borders Provinces Administration Center (Thailand - SBPAC) has formed cooperation ties with Bank Muamalat Indonesia to gain knowledge about Islamic microfinance

(Dari kiri) Direktur Finance and Operations Bank Muamalat Hendiarto, Direktur International Banking and Financial Institution Bank Muamalat Farouk A. Alwyni, Ketua Dewan Penasehat Perdamaian SBPAC Aziz Benzawan, Deputi Sekjen SBPAC Pramuk Lamul berbincang saat kunjungan ke Bank Muamalat Indonesia, Jakarta 19/1. Thailand mengirimkan sekitar 30 delegasi Southern Borders Provinces Administration Center (SBPAC) untuk mempelajari Islamic Microfinance di Bank Muamalat. (source)

BANKING - BSM Bank Syariah Mandiri records 400,000 transactions

JAKARTA: The remittance using Indonesian Fund (Dana Untuk Indonesia Tercinta/DUIT) scheme of PT Bank Syariah Mandiri (BSM) reached 400,000 transactions in 2010.

The subsidiary of PT Bank Mandiri Tbk is eyeing the remittance market by partnering with PT XL Axiata Tbk.(source)

PUBLICATIONS - ARTICLES - List of publications of Rahmatina A. Kasri

Rahmatina A. Kasri was so kind to put a list of the publications related to Islamic finance at our disposal (see hereunder).

We will keep you updated on future release.

FINANCIAL MARKETS - Bahrain's Elaf Bank eyes Asian sukuk market

ISLAMIC FINANCE Elaf Bank obtained a banking licence in Malaysia at the end of last year and sees more opportunity for the company in the East (source)

FINANCIAL MARKETS - BI absorbs IDR26.87 trillion from SBI auction

JAKARTA: Indonesian central bank, Bank Indonesia, absorbed IDR26.87 trillion from the auction of Certificate of Bank Indonesia (SBI).

Nonetheless, a significant number of fund was left unabsorbed since the indicative target had been met. Based on the auction results on 12 January 2011, BI determined the indicative target of IDR25 trillion for SBI maturing in 6 months and 9 months, as it also set IDR2 trillion indicative target for Sharia SBI due 6 months.

Bank Indonesia successfully derived IDR5 trillion from the six-month term SBI with 6.1% yield. The offering value of the government notes in fact reached IDR38.82 trillion.

FINANCE - Murat Cizakca (Inceif-Malaysia) - Islamic Countries Should Continue To Use Paper Currency

KUALA LUMPUR, Monday 17 January 2011 (Bernama) -- Islamic countries should continue to use paper currency instead of gold dinar as history has shown that the return to the coinage system could increase interest rates and inflation would be difficult to control.

Professor of Comparative Economic History at International Centre for Education in Islamic Finance (INCEIF), Dr Murat Cizakca, said money should serve as a medium of exchange, not as a commodity.

"We need to continue with paper currency, and the central banks controlling paper currency should have full autonomy," he said.

FINANCE - Kuwait, Indonesia bound by strong ties

KUALA LUMPUR: The State of Kuwait and Indonesia are bound by strong ties in economic, cultural, and investment domains and both parties seek to further enhance the level of cooperation for the best interest of both peoples, the Kuwaiti Ambassador in Indonesia said yesterday.

Ambassador Nasser Al-Enizi was speaking following his meeting with Board Chairman of Kuwait Red Crescent Society Barjas Humoud Al-Barjas. He noted there was coordination among Kuwaiti and Indonesian parties concerning issues raised at and stances regarding these issues at international venues such as the United Nations, the Non-Aligned Movement, the Organization of the Islamic Conference, and many more.

RATINGS - Indonesia Credit Rating Raised by Moody’s to 13-Year High

Moody’s Investors Service on Monday upgraded Indonesia’s credit rating to the highest level since the 1997 Asian financial crisis, citing the nation’s “economic resilience” and improving public debt position. (AFP Photo)

Jakarta. Moody’s Investors Service upgraded Indonesia’s credit rating to the highest level since the 1997 Asian financial crisis, citing the nation’s “economic resilience” and improving public debt position. Bonds rose.

The government’s foreign and local-currency bond rating was raised to Ba1 from Ba2, Moody’s said in a statement today. That’s one step below investment grade and puts Indonesia on par with Greece, which was placed on review for a possible downgrade by Moody’s last month.

Rising exports are fueling growth and credit upgrades for emerging markets from China to the Philippines, which are outperforming debt-laden developed economies from Greece to Japan. Bank Indonesia forecasts Southeast Asia’s biggest economy will expand by as much as 6.5 percent this year from an estimated 6 percent in 2010.

FINANCE - KFH plans $300 mln fund, seeks Indonesian assets

By Liau Y-Sing, Reuters

KUALA LUMPUR - Islamic fund manager KFH Asset Management will launch a $300 million fund to invest in consumer, healthcare and education businesses by end 20120, its private equity head said on Monday.

KFH Asset Management, a subsidiary of the Malaysian unit of Kuwait Finance House , would raise money from Gulf investors for the fund which would also invest in waste management and light manufacturing companies, Lew Oon Yew said.

COUNTRY REVIEW - FRANCE - most prominent mover 2010

Most of you will know that I do follow up close what is happening in the greater European space in the field of Islamic finance.

I just made a short review about the most prominent mover over the year 2010.

France managed to adapt following tax regulations for the introduction of Islamic (finance) contracts : Murabahah, Ijara, Istisna and there were specific changes to allow Sukuk.

ISLAMIC TRADE FINANCE - Presentation

There is an interesting presentation (mix Bahasa Indonesia / English) of Muhammad Syafi Antonio available on the website of MES Masyarikat Ekonomi Syariah.

You can download it HERE.

FINANCE - KUR - Mandiri Loans to Microbusinesses Hit Rp 6.5t

Jakarta. Bank Mandiri distributed Rp 6.5 trillion ($721.5 million) in loans to microbusinesses in 2010, 45 percent higher than the previous year, the bank announced in a statement on Sunday.

“Mandiri sees a lot of potential within the micro sector. We want to take a more active role in developing the sector that helps drive Indonesia’s economic development,” said Tardi, Bank Mandiri’s senior vice president for microbusiness development. Mandiri, Indonesia’s largest bank by assets, distributed loans to around 545,000 microbusiness in 2010 with about 4 percent in non-performing loans. The maximum platform of the loan, which is targeted for micro and household businesses, is Rp 100 million.

VIDEO - Clip - Launching Hasanah Card BNI Syariah

Video Launching Launching Hasanah Card BNI Syariah.

Clip hereunder.

VIDEO - Clip - BNI Syariah Targetkan 50% Pertumbuhan

BNI Syariah menargetkan pertumbuhan 50% setiap tahun baik dalam pembiayaan maupun dana pihak ketiga (DPK) seperti dana tabungan haji.

Clip hereunder.