INDONESIA - INSURANCE - World Bank Starts Campaign on Microinsurance

TEMPO Interactive, Jakarta:The World Bank has started a campaign on the importance of insurance for the poor. Stefan Koeberle, the World Bank’s Country Director for Indonesia, suggested Indonesia to develop microinsurance.

Indonesia’s natural landscape, which is prone to disaster, is considered to have a major impact on marginal household. Should a natural disaster occur, the impact is more severe in these household. So far, there are 77 million out of 238 million Indonesian citizens living without insurance or savings.  (source)

WORLD - GENERAL - WB meet fails to address Islamic finance role in development

ARABNEWS.COM - Oct. 03--Islamic finance got an important airing at the 2011 annual meetings of the World Bank Group/International Monetary Fund (IMF) held in Washington last week when Ahmad Mohamed Ali, president of the Islamic Development Bank Group (IDB) was invited for the first time to address the influential 84th Development Committee meeting of the World Bank as an observer.  (source)

INDONESIA - BANKING - Financing Business Domination Griya BNI Syariah

REPUBLIKA.CO.ID, JAKARTA - Financing griya dominate the business of Bank Negara Indonesia (BNI) Sharia by 60 percent. BNI is a subsidiary of record in the field of housing finance amounted to Rp 2 trillion in the first half of 2011.

According to the Division Manager of Network Strategy and Financing BNI Syariah, Achmad Basuki, this business continues to grow to 15 percent from December 2010.

BNI Syariah noted griya Rp 1.7 trillion,''he told reporters on Tuesday (9 / 8). He confessed to the end of 2011, World Bank ready to target this funding will reach Rp 2.3 trillion. ''So we spur $ 300 billion again,''he said. (source)

MALAYSIA - Malaysia's Zarinah Anwar calls for greater GCC-Asian connectivity

LONDON: Zarinah Anwar, chairman of the Securities Commission of Malaysia, the securities and capital market regulator, has called on Middle Eastern and Asian countries to spearhead the further expansion of Islamic finance, which in the process would also deepen business and investment linkages between the two regions where the phenomenon is already being practiced on a significant scale. (source)

TRADE FINANCE - MIGA Covers Murabaha Facility for Indonesia Telecoms Expansion

Project Example of Agency’s Work with Islamic Finance Deal Structures

WASHINGTON, DC, June 16, 2011—The Multilateral Investment Guarantee Agency (MIGA), the political risk insurance arm of the World Bank Group, announced today that it has provided $450 million in investment guarantees to support the expansion of telecommunications services in Indonesia. MIGA’s guarantees are backing a $450 million Murabaha financing facility underwritten by Deutsche Bank and Saudi British Bank (SABB). (source)

PRESENTATIONS - A. Jobst (I.M.F.) - Islamic Finance Outlook (Nov 2010)

Andreas JOBST -I.M.F.

Islamic Finance Outlook - current global financial stability and prospects of Islamic finance

Presentation Euro Finance Week Nov 18, 2018 - Frankfurt/Main
(not in Indonesia - but gives a nice view on the present situation - informal point of view of my friend Andreas Jobst - I.M.F.)

maleki jobst

PUBLICATONS - WORLDBANK - Islamic vs. Conventional Banking Business Model, Efficiency and Stability (Oct 2010)

Summary: This paper discusses Islamic banking products and interprets them in the context of financial intermediation theory. Anecdotal evidence shows that many of the conventional products can be redrafted as Sharia-compliant products, so that the differences are smaller than expected. Comparing conventional and Islamic banks and controlling for other bank and country characteristics, the authors find few significant differences in business orientation, efficiency, asset quality, or stability. While Islamic banks seem more cost-effective than conventional banks in a broad cross-country sample, this finding reverses in a sample of countries with both Islamic and conventional banks. However, conventional banks that operate in countries with a higher market share of Islamic banks are more cost-effective but less stable. There is also consistent evidence of higher capitalization of Islamic banks and this capital cushion plus higher liquidity reserves explains the relatively better performance of Islamic banks during the recent crisis.

2010 Worldbank Islamic vs Convnetional Banking

FINANCE - Islamic Relief Indonesia signs multimillion dollar contract with World Bank and Indonesian Government

Shabel Firuz, Islamic Relief Worldwide’s Indonesia Coordinator said, "Islamic Relief is very grateful to the Government of Indonesia, the World Bank and to all our colleagues who made this happen. Support of this nature is essential for sustaining Aceh's economic development and helps us to continue partnering with communities who survived the tsunami nearly six years ago. 

Islamic Relief’s Indonesia office has signed a contract worth $4.84 million dollars with the Government of Indonesia and the World Bank, which will be used to strengthen the sustainability and productivity of the fisheries sector in the province of Aceh, Sumatra.

BANKING - BII, IFC cooperate to empower businesswomen

JAKARTA: Publicly listed bank BII signed an agreement with the International Finance Corporation (IFC), the World Bank affiliate for the private sector, on Wednesday to enhance the bank’s products and services for women entrepreneurs to help women to get easier access to financing for their businesses.

BANKING - IFC Helps Expand Access to Finance for Indonesian Women and Small Medium Enterprises

Indonesia, Jakarta, September 21, 2010— PT Bank Internasional Indonesia (BII) and IFC, a member of the World Bank Group, have signed a cooperation agreement to enhance the bank’s products and services towards female entrepreneurs, allowing women to obtain financing for their businesses more easily.

As part of the Cooperation Agreement, IFC Indonesia will advise BII as it sets out to become the bank of choice for women-owned businesses in Indonesia. Through this initiative, IFC will assist BII to improve its reach to both the small medium enterprises and women entrepreneurs.

BANKING - Bank Indonesia’s Savings Product for the Poor Fails to Catch On

Jakarta. An initiative by the central bank encouraging poor Indonesians to open bank accounts has attracted little interest from the tens of millions of low-income citizens who don’t have accounts already.

Hoping to bring more people into the baking system, Bank Indonesia has been pushing about 70 commercial lenders to promote a product called Tabunganku, or My Savings, which requires only a small initial deposit and charges no administrative fees.

But Adang Saputra, a senior researcher at the central bank’s financial stability bureau, said on Wednesday that Tabunganku had attracted only 420,000 customers since its February introduction.

BI had been expecting at least one million accounts to be opened this year. A 2009 survey by the bank found that some 43 million Indonesians did not use banks.