INDONESIA - CAPITAL MARKETS - Small issuance, new regulations

www.ibpa.co.id - JAKARTA. Aka Islamic sukuk issuance in 2012 also continued to grow. Citing data from the Capital Market and Financial Institutions Supervisory Agency (Bapepam LK), sukuk issued until late July, a total of 52 products, with a value of Rp 9.39 trillion emissions.

A total of 37 new products were classified as ijara sukuk. While the rest is kind of mudaraba sukuk. Etty Retno Wulandari, Bureau Chief Accounting Standards and Disclosure of Bapepam-LK, said that so far this year reached Rp 1.47 trillion.  (source)

INDONESIA - REGULATIONS - Capital Markets : contract of Istisna and Musharaka

www.bapepam.go.id - PRESS RELEASE - ISSUANCE OF REGULATIONSSUPERVISORY BOARD CAPITAL MARKET AND FINANCIAL INSTITUTIONSOn this day, Wednesday, August 1, 2012, Bapepam-LK issued a regulation is Regulation No. IX.A.14, attachment, and the Chairman LK Number: KEP-430/BL/2012 dated August 1, 2012 of the Agreement, the Agreement Used in the issuance of Islamic securities in the capital market. This regulation is Rule Number IX.A.14 improvements, attachment, and the Chairman LK Number: KEP-131/BL/2006 dated 23 November 2006 concerning the Agreement, the Agreement Used in the issuance of Islamic securities in the capital market.Completion of these regulations, especially related to the addition of contract Musharaka is a new contract and the contract Istishna. It aims to support Islamic Capital Markets industry needs with a wider range of variation of the contract and potential that can be used in the issuance of Islamic securities in the capital market. (source)

INDONESIA - BANKING - Sharia banks’ assets up 50 percent in March

www.thejakarapost.com - JAKARTA: The total assets of Indonesia’s sharia banks increased by 50 percent to Rp 158.8 trillion (US$16.99 billion) as of March from Rp 101.2 trillion in the same period last year, according to a senior Bank Indonesia official.

Edy Setiadi, the director for sharia banking at the central bank, said that the annual growth of the Islamic banks in Indonesia averaged 40.2 percent over the past five years.

“Sharia banking only accounts for a 4.23 percent market share. We aimed to achieve 15 to 20 percent of market share within 10 years,” he said during the opening ceremony of International Franchise License and Business Concept Expo & Conference (IFRA) in Jakarta. (source)

INDONESIA - BANKING - SRB Hold PT Pos Indonesia

WWW.REPUBLIKA.CO.ID, JAKARTA - In order to expand the reach, SRB Al Salam with PT Pos Indonesia (Persero) in receipt of the installment financing of customers' deposits BPRD Al Salam. Financing can now be done through the office, outlet, and postal services around the PT Pos Indonesia.

"Customers can make transactions through the entire Postal outlets throughout Indonesia," said Director of PT BPR Islamic Amal Al Salaam Salman, Cahyo Kartiko, as it is written in a release received by Reuters on Wednesday (18/4).  (source)

INDONESIA - CAPITAL MARKETS - Lower Yields Breathe New Life Into Indonesia’s Islamic Lending

www.thejakartabglobe.com - A year long drought in the sales of corporate sukuk in Indonesia is ending as falling yields spur offers by Bank Muamalat Indonesia and Mayora Indah.

Bank Muamalat, the nation’s second-largest Islamic lender, will offer as much as Rp 800 billion ($87.2 million) of Shariah-compliant notes in June, finance director Hendiarto said on April 4.

Mayora Indah, a biscuit maker, will sell Rp 250 billion of debt in May, a company statement said on Monday. The average yield on Indonesian corporate dollar-denominated debt has fallen 34 basis points to 4.87 percent since Jan. 17, the day before Moody’s Investors Service gave the country an investment-grade rating. (source)

HONG KONG - CAPITAL MARKETS - Hong Kong consults on Islamic bonds

www.cpifinancial.net - The Financial Services & the Treasury Bureau (FSTB) launched a consultation on 29 March 2012 on the proposed amendments to the Inland Revenue Ordinance and Stamp Duty Ordinance to promote Islamic bond, market development in Hong Kong SAR.

Secretary for Financial Services & the Treasury Professor KC Chan said the amendments seek to level the playing field for common types of Sukuk (Ijarah, Musharaka, Mudaraba and Murabaha) vis-a-vis their conventional counterparts in terms of profits tax, property tax and stamp duty liabilities. (source)

INDONESIA - REGULATIONS - Regulations prohibit growth of corporate sukuk

www.pkesinteraktif.com - Jakarta (24/2) - corporate Sukuk are not experiencing significant development. This is because existing regulations do not currently support the development of sukuk itself.

"Sukuk? In the regulation of GAAP and tax incentives that problem. Now look at the movement of corporate sukuk are relatively quiet. It was recognized by friends of the regulator, "said Head of Market Development Indonesia Stock Exchange (BEI) Irwan Abdalloh when met at the University of Gunadarma Depok, on Thursday (24/2). (source)

HONG KONG - HK ready to roll

www.theislamicglobe.com - The Hong Kong government is pressing ahead with legislation to make it become an Islamic finance player.
Financial secretary, John Tsang, used his annual Budget speech to flag up the territory’s plans to amend current legislation and put Sukuk on an equal footing with conventional bonds.
He said: “We are close to finalizing the draft amendments to the relevant kegislation with a view to leveling the playing field for common types of Islamic bonds vis-à-vis their conventional counterparts as far as profits tax, property tax and stamp duty are concerned.” (source)

INDONESIA - BANKING - Assets Islamic banking up 49 %

www.tempo.co - TEMPO.CO, Jakarta-booming Islamic banking assets throughout 2011. Total assets of Islamic banks grew 49 percent from Rp 79.6 trillion in 2010 to Rp 149 trillion. "This figure includes 154 assets Sharia Rural Banks," said Director of Bank Indonesia Sharia Banking, Mulya E. Siregar, Monday, January 23, 2012.

With these achievements, the national Islamic bank managed to achieve 4 percent market share of banking assets, up 0.72 percent from 2010. Islamic bank financing nationwide had reached Rp 105 trillion, or grew 50.6 percent over the same period of 2010. Third party funds that can be collected by Islamic banks in 2011 also rose 51.78 percent to Rp 118 trillion. (source)

INDONESIA - BANKING - Muamalat Embraces Sharia SMF Shelter Fund

Jakarta (14/12) - Financing shelter is now the belle of the retail banking in extending financing. Predicted by 2012 the demand for residential mortgages is still very high. This is certainly not wasted by the banking and Islamic banking is no exception Muamalat Indonesia (BMI) is one of them.  (source)

INDONESIA - FINANCE - Prospect Property Financing the Sharia

Although global economic conditions are being hit by the crisis, it seems the property sector in Indonesia is still showing a positive trend. This can be seen from the growth rate property loans significantly.
Even from time to time property loans have consistently proven to grow above the level of credit growth in general. Total value of property loans at the end of quarter three banks last year reached USD 285.292 billion or 24.85% growth. While the overall growth of bank credit were approximately 20.5%.  (source)

INDONESIA - BANKING - Adjust the Profit Sharing Islamic Banking with BI Rate

REPUBLIKA, JAKARTA --- Decrease in interest rates of Bank Indonesia (BI) requires that a recent decline in margins in Islamic banking. This margin decline primarily for transactions conducted with murabaha contract.

Previously BI rate has been lowered to a level of 6 percent. The decline was not only the conventional banks to lower lending rates. Islamic banks which have a fixed margin for murabaha financing should also start counting again.

According to the Director of the Directorate of Islamic Banking BI, Mulya Effendi Siregar, Islamic banks have to make adjustments to financing such as murabaha with fixed margins after interest rates fell. (source)

INDONESIA - BANKING - Islamic Banking Deposits Reach Rp 103.3 Trillion

JAKARTA - Bank Indonesia (BI) recorded Third Party Funds (TPF) of Islamic banking to October 2011 reached Rp 103.3 trillion, up 50 percent from the same period in 2010 amounted to Rp 69 trillion.
Director of the Directorate of Bank Indonesia Sharia Banking Mulya Siregar express it here on Friday.
Mulya detailing the Commercial Bank Deposits for Sharia and Sharia reach Rp 101.6 trillion, coupled with SRB deposits that reached Rp 1.7 trillion. Islamic banking assets up to 16 November 2011 reached Rp 130 trillion, with total customer until today reaches about 8 million customers. (source)

INDONESIA - BANKING - Sharia Banking Assets Rp130 ​​Trillion

JAKARTA: Islamic banking assets amounting to Rp130 ​​trillion recorded at the end of October 2011 increased by 48.57% compared to same period previous year.
Mulya Siregar, Director Islamic Banking Bank Indonesia (BI) said the increase in assets is in line with the disbursement of funding and third party fund raising (DPK) conducted by Islamic banks, Islamic business units, and bank financing Islamic people  (source)

INDONESIA - BANKING - BTN Sharia Profit 95 Percent Products

REPUBLIKA.CO.ID, JAKARTA --- Access Bank BTN Syariah gains increased significantly compared to last year. Until the end of October 2011, Bank BTN Syariah put into gains to Rp 68 billion, up 95 percent from December 2010.

The rise of profit growth over the BTN Syariah assets to about 90 percent. BTN Syariah assets per October 2011 reached Rp 4.8 trillion. "The development of the growth of our incredible assets from October 2010 was Rp 2.8 trillion to Rp 4.8 trillion on October 30, 2011," said Department Head BTN Syariah, Hanan Wihasto, Sunday (13/11). (source)

INDONESIA - BANKING - Bank Syariah Bukopin Pursue Surakarta Branch Deposits

Surakarta (27/10) To meet the fundraising target until the end of 2011, Bank Syariah Bukopin (BSB) Surakarta branch to penetrate the market to encourage the growth of third party funds (DPK) through savings products iB standby.
Dede Furqon, BSB Branch Chief Surakarta, in his statement releasenya say, that the target BSB Surakarta branch is growing about 30% for that he focus in collecting funds from the public cost. He believes the product iB Savings Alert, these funds can achieve. (source)

INDONESIA - BANKING - BI: Rahn Gold Limit, Increase Profit Sharing Product

Jakarta (27/10) - Gold now it is showing "sheen". Proven practices rahn gold or gold pawn is mostly done by banks, Islamic banking is no exception. Data Bank Indonesia (BI) showed outstanding gold rahn committed Islamic banks until the end of August 2011 reached Rp 5 trillion. That number grew to Rp 4 trillion in just two months from July 2011 to reach USD 1 trillion.

 BI deputy governor Halim Alamsyah said the practice rahn gold with the principle of margin does have a greater return so as to accelerate the pace of Islamic banks. However, it should be observed, increasing gold rahn will certainly reduce the share of products for the results. And as it is known principle of profit sharing is the spirit of Islamic banking.  (source)

INDONESIA - BANKING - End of September, BNI Syariah Kuangan Performance Increases

Jakarta (27/10) - PT Bank Negara Indonesia (BNI) Syariah showed positive performance through September 2011. Compared to September 2010, recorded profit after tax increased 963.90% to the value reached Rp97, 447 billion.BNI Syariah also recorded a rise in the financing of Rp1, 883 billion or 57.86 percent of Rp3, 255 in September 2010 to Rp 5, 138 in September 2011. While the Special Fund recorded an increase of 23.72%. While the total assets of the company on September 30, recorded at Rp7, 358 trillion, up 20.87 percent compared to same period the previous year (year on year) amounting to Rp 6.088 trillion.  (source)

INDONESIA - ARTICLES - Indonesia: Synergy of Islamic finance and SMEs

ANY SETIANINGRUM discusses why Islamic banking and financing products must be able to take a major role in the development and strengthening of the small and medium-sized enterprises in Indonesia.

Islamic banking in Indonesia provides financing to small and medium-sized enterprises (SMEs) which are a mirror of the economy of the majority of the people. Thus improving the welfare of SMEs is a community effort. In the Islamic economic system, moral values and ethics is an inherent value and it cannot escape the moral responsibility and ethics. (full story here - 19-Oct-2011- Volume8.Issue41)

INDONESIA - BANKING - Islamic finance reach Rp94 trillion as of September

bisnis.com - JAKARTA: Bank Indonesia reveal the distribution of financing Islamic banking industry as of September reached Rp94 trillion, growing 49.32% compared to same period previous year Rp62, 94 trillion.

Director of the Directorate of Islamic Banking Bank Indonesia (BI) Mulya Siregar said the financing comprises financing of Rp92 trillion sharia business unit (UUS) and dank sharia (BUS) and Rp2 trillion comes from a sharia rural banks (BPRS).  (source)