INDONESIA - BANKING - Islamic banking operations need evaluation

Jakarta (22 / 7). The rapid advance of sharia banking in Indonesia was still offset by ketidakpahamann public about Islamic banking. They still think that the concept of Islamic banking similar to conventional banking, which put forward the "flower". Therefore, Deputy Minister for Human Resources (HR) of the Ministry of Cooperatives and SMEs, Agus Muharram request to an evaluation of the operational implementation of sharia banking in Indonesia.

Evaluation of Islamic banking operations, said Deputy Human Resources is very important, this is to counteract the issues that weakened the Islamic banking in Indonesia. If it is not done, he believes that Islamic banking is very difficult to increase its market sharenya.  (source)

EVENTS - IFEF 2011 - Minister of Finance: the Important of Investment Knowledge

Jakarta, (20/6). Indonesian government thru the minister of finance, once again has  repeated his statement of how important it is to understand the risk and profit of investment products. Furthermore he said that the people must be able to adjust its investment portfolio as according to their needs. (source)

CAPITAL MARKETS - House approves Rp 30.2t in underlying assets for sukuk

The House of Representatives approved on Tuesday the government's proposal for the use of state properties worth a total of Rp 30.2 trillion (US$3.5 billioin) as underlying assets for state sukuk (sharia bonds) it issues this year. (source)

FINANCE - IDB Providing $3.3b to Help Indonesia Hit Growth Target

The Islamic Development Bank on Wednesday agreed to provide as much as $3.3 billion of financing through 2014 to speed Indonesia’s economic growth.

“We are focusing on poverty, health and infrastructure. In line with IDB’s strategic priorities, we are committing to provide soft loans for its member, including Indonesia,” bank president Ahmad Mohammed Ali said.  (full story)

BANKING - FINANCE - Indonesia Reviews Shariah Loan Restructurings: Islamic Finance

Jakarta. Indonesia, the nation with the biggest Muslim population, may reduce restrictions on Islamic banks by allowing them to change terms on loans before they become troubled.

“Shariah banks have asked that loans that are still current can be restructured,” Mulya Siregar, director of Islamic banking at the central bank, said in an interview in Jakarta on Tuesday.

“We’re having intensive discussions and will make a decision by the fourth quarter at the latest.”