INDONESIA - BANKING - OJK Must Keep Developing Islamic Banking

www.investor.co.id - JAKARTA - Economic Observer Indonesian Institute of Sciences (LIPI) Eko Agus said the Financial Services Authority (OJK) as the new financial industry oversight should try to improve the prudential aspects of the Islamic banking business, while maintaining growth in the financial industry."Currently the number of Islamic banking is only about 20 to 30% of total national banking system, so the OJK should keep trying to push the performance of Islamic banking to be able to advance the financial industry, while maintaining the aspect of prudence," he said when contacted here on Tuesday .He said that Indonesia adheres to the dual banking system is a conventional bank and islamic bank, so that the OJK must provide supervision equal portions of both the financial industry is like a Bank Indonesia has done so far.  (full story)

INDONESIA - BANKING - OJK Commissioners Officially Installed

www.theindonesiatoday.com - JAKARTA (Indonesia Today) - Supreme Court Chief Hatta Ali has sworn in nine commissioners of Financial Services Authority (OJK) Friday (July 20).

They are Muliaman Hadad as OJK chief, Anny Ratnawati as ex-officio from ministry of finance, and Halim Alamsyah as ex-officio commissioner from Bank Indonesia.
Muliaman Hadad was deputy governor of Bank Indonesia, while Anny Ratnawati is vice minister of finance. Halim is still deputy governor of Bank Indonesia.  (source)

INDONESIA - REGULATIONS - DBS Indonesia Deal May Dodge New Bank Ownership Rules

www.thejakartaglobe.com - The gloom surrounding DBS Group’s $7.2 billion bid for Indonesia’s Bank Danamon is giving way to renewed optimism, with signals from the central bank in Jakarta on Tuesday suggesting the Singapore lender’s takeover may just scrape through.

Southeast Asia’s biggest banking takeover bid was thrown into limbo in April, when Bank Indonesia (BI) announced it would not approve the deal to buy its sixth-biggest lender until it had published new regulations to cap ownership stakes in banks.

The central bank says it wants to prevent its lenders falling captive to single interests and ensure they have a diverse shareholder base holding management to account.  (source)

INDONESIA - REGULATIONS - Hadad (MES) choosen as head OJK

www.kontan.co.id - JAKARTA. All members of the Commission XI of the House of Representatives (DPR) has selected unanimously Muliaman D. Hadad as Chairman of the Board of Commissioners the Financial Services Authority (OJK DK). Hadad was elected unanimously by the 52 members of the House Commission XI meeting following the election of a chairman and a member of DK OJK.
A total of nine factions to choose Muliaman D. Hadad is unanimous. "The chairman was chosen by acclamation," said Commission Chairman XI Emir Moeis in front of all trial participants. DK OJK conclave was held closed. Meanwhile, the election of six members of the Security Council OJK still going to vote or voting.  (source)

INDONESIA - REGULATIONS - Comments on this Islamic Banking Commissioner OJK

WWW.REPUBLIKA.CO.ID, JAKARTA - Director of Compliance and Risk Management of Bank Muamalat, Andi Buchari, expect the new Board of Commissioners OJK can help the progress of Islamic banking.

"Indonesia Sharia Bank Association already advises the OJK to participate in making policies that promote Islamic banking," said Andi, Wednesday (20/6).  (source)

INDONESIA - REGULATIONS - BI Introduces New License Scheme to Keep Banks Healthy

www.thejakartaglobe.com - Banks in Indonesia will need to gain new licenses as they seek to expand their operations as part of a central bank move to ensure the nation’s financial players remain healthy and well-capitalized.

The multiple-license system will replace the existing practice of banks requiring just a single license, after which they have widespread freedom in conducting their business, constrained only by the nation’s banking law.

It is intended to better protect banks and consumers, as well as better prepare local lenders for expansion overseas.  (source)

INDONESIA - BANKING - Bank Indonesia to Increase Regulation Through Multiple Licenses

www.thejakartaglobe.com - In an effort to guide banks and implement a set of standardized policies, Bank Indonesia plans to require banks to obtain multiple licenses for individual activities.

Under the new plan, licenses will be issued based on the “capital condition” of banks, and only those institutions with hearty capital reserves will be eligible for the multiple licenses — it’s a move that represents increased regulation for Indonesia’s banking sector, which is in part an effort to conform to international banking practices. 

Muliaman Darmansyah Hadad, the deputy BI governor, said that the implementation of the multiple licenses would require banks to prove their capacity and capabilities to conduct their duties.  (source)

INDONESIA - REGULATONS - Indonesia Set to Cap Bank Owners’ Stakes: Sources

www.thejakartaglobe.com -  Singapore/Jakarta. Indonesia’s central bank is set to limit the maximum stake a single shareholder can take in the country’s banks to below 50 percent, a move that could scupper Singapore-based DBS Group’s $7.3 billion bid for Bank Danamon.

DBS’s acquisition plans were thrown into limbo late last month when the Indonesian central bank said it would not approve the deal until it had published a long-awaited set of rules on bank ownership. Bank Indonesia did not disclose details of the rules at the time. (source)

INDONESIA - BANKING - This is the Greatest Challenge of Sharia Industry

WWW.REPUBLIKA.CO.ID, Industrial sharia in the last five years to grow rapidly. Total assets of Islamic banking in Indonesia increased from the 17th position to 13th position to the world. This means that the interest of the industry growth of sharia in Indonesia remains high. Remarkably, this growth can still be much higher.
Since the issuance of Islamic Law No. 21 In 2008, Islamic banking has a significant spike. Indonesia Islamic banking is more developed than Bahrain. This favorable development is not likely to be used for the management of state finances.  (source)

INDONESIA - BANKING - BI to Implement Multiple Lincense to Foreign Banks

www.theindonesiatoday.com - JAKARTA, Indonesia Today - The central bank, Bank Indonesia (BI), plans to implement multiple license to foreign banks operating in Indonesia, Bisnis Indonesia reported this morning.

Muliaman D. Hadad, BI's governor deputy, said the multiple license implementation is inline with other countries' policies that do not give equal access to Indonesian banks for expansion.

He said BI's plan to limit foreign ownership in local banks will not be implemented in the near term as BI must synchronize with the government's regulation.  (source)

INDONESIA - BANKING - DBS may see Danamon bid delayed

www.thejakartapost.com - Regulators may use DBS Bank's bid for Indonesia's Bank Danamon as a bargaining chip and delay approval until Singapore agrees to offer reciprocal access to its banking sector.

Bank Indonesia (BI) governor Darmin Nasution and his deputy Muliaman Hadad said on Wednesday that they wanted to use DBS' bid to acquire the Indonesian bank, in which Temasek Holdings has a majority stake, to start negotiations on the matter.

If it goes through, the $9.1 billion acquisition, DBS' largest ever, will propel the Singapore bank to being the No. 5 lender in Indonesia, one of the hottest emerging markets.  (source)

INDONESIA - BANKING - BI to ask DBS on Danamon transaction

www.thejakartapost.com - The Indonesian central bank (Bank Indonesia) is set to invite the management of Singapore’s DBS Group to discuss the company’s plan to buy 99 percent of Bank Danamon (BDMN) shares.

“We will ask what they will do and about their intentions [on buying Bank Danamon],” said BI deputy governor Muliaman Hadad on Wednesday.

He said the meeting was part of the standard operating procedure.  (source)

INDONESIA - EDUCATION - Need remote village of Islamic Economic Education

WWW.REPUBLIKA.CO.ID, JAKARTA - Education Islamic economy must be assessed to the countryside. That way, people's understanding of Islamic banking can be extended to more easily answer the question of the nation.

According to the Chairman of Islamic Economic Society (MES), Muliaman D Hadad, a major challenge to promote Islamic economics from the side of public education.

Education will minimize many of suspicion is the result of ignorance of Islamic economics. "Need to educate the public so that no suspicion and understood, so that Islamic economics can answer the question," Hadad said the inaugural committee MES, Friday (17/2). (source)

INDONESIA - MICRO FINANCE - Islamic Banking Sector Start Micro Seriusi

REPUBLIKA.CO.ID, JAKARTA --- Islamic Bank is considered to have great potential to enlarge the cheap funds from the micro to the bottom segment. Although most have not bankable, micro segment downwards also potentially subject to financing.
According to Deputy Governor of Bank Indonesia, Hadad Hadad, embracing the micro segment down to funding for Islamic banks is not difficult. This is because, conventional banks have mempratikkan savings program with low initial deposit.  (source)

INDONESIA - ECONOMY - The Islamic economic life of the state

pkesinteraktif.com - Jakarta (23/10) - Today Islamic economic system has entered almost every financial aspect in this country. Ranging from banking, insurance, multi, pawn shops, until the capital markets has had sharia units.

Deputy Governor of Bank Indonesia, Muliaman D Hadad said the Islamic financial services is no longer in question but already in the stage of the application and development stages. Thus Islamic economics has become a part of economic life and state.  (source)

FINANCE - IILM - BI forms International Islamic Liquidity Management Corporation (IILM)

Bank Indonesia,together with 10 other central banks and two multilateral organisations, signed an agreement on 25thOctober 2010 in Kuala Lumpur, Malaysia to establish the International Islamic Liquidity Management Corporation (IILM). This agreement, facilitated by the Islamic Financial Services Board (IFSB), marks collaboration regarding an array of elements involved with current global initiatives aimed at assisting institutions that offer sharia-based financial services in dealing with their efficient and effective management of liquidity. In addition, this initiative will facilitate a surge in investment flows to the Islamic financial services industry.