INDONESIA - BANKING - Distributes Funding BSM Rp39, 93 trillion

www.investor.co.id - JAKARTA-Bank Syariah Mandiri (BSM) financing channel for Rp39, 93 trillion by the end of June 2012, up 32.85 percent over the same period in 2011 amounting to Rp30, 06 trillion.
"Financing is a source of income for margins and results of the largest profit contributor," said Managing Director of BSM Yuslam Fauzi current events and breaking fast gathering together in Jakarta, Monday (13/8).
BSM said Yuslam financing micro business sector focuses on small and medium enterprises (SMEs) which occupies a portion of 73.34 percent, while the share of corporate financing amounted to only 26.66 percent.
"In the previous period, the portion of the financing is greater to the corporation, but the current and future we will pay more attention to SMEs," he said. (source)

INDONESIA - BANKING - BRI Syariah focus on small economy

www.investor.co.id - JAKARTA-Bank intends to encourage BRISyariah lower middle-class economy with a range of services according to customers' needs.
"We want to always lift the economy down people by supporting their efforts in order to grow," said Director of PT. Bank BRISyariah Moch. Hadi Santoso, BRISyariah Headquarters, Jakarta, Thursday (9/8).
Hadi explained that it had teamed up to deliver small loans to cooperatives and BMT are spread throughout Indonesia.
He admitted that in a way that facilitates SMEs to manage their funds either in the form of deposits or loans.  (source)

INDONESIA - BANKING - Bank Mandiri Syariah Post the First Quarter Earnings Rp192, 72 M

WWW.REPUBLIKA.CO.ID, JAKARTA-Through First Quarter of 2012, Bank Syariah Mandiri (BSM) recorded excellent growth. One indicator is the growth in net profit. BSM net profit at the end of March 2012 for Rp192, 72 billion, up 42.87% compared to net income of BSM end of March 2011 amounting to Rp 134.89 billion.

The biggest contributor to the increase in net profit margin is revenue and profit sharing. Revenue and margin for the BSM at the end of March 2012 reached Rp 1.07 trillion, up 24.76%, compared to the position in March 2011 amounted to Rp 860 billion.  (source)

INDONESIA - BANKING - BNI Syariah Microfinance Expansion

WWW.REPUBLIKA.CO.ID, JAKARTA - Bank Negara Indonesia (BNI) Syariah will develop micro-finance service this summer. Currently there is a new micro-finance services in five places in Bogor and its surrounding areas.

"Microfinance pilot project this year," said Director of Business BNI Syariah, Bambang Widjanarko, Thursday (17/5).  (source)

INDONESIA - BANKING - BRI Syariah : Dutifully paid the debt, the debtor would be an incentive

www.kontan.co.id - JAKARTA. In order to boost business growth in micro, small and medium enterprises (SMEs), BRI Syariah will give incentives to customers who comply with the payment before the debt matures. Incentives in the form of a reduction in bank interest margins or the public.
Magnitude of the pieces is not more than one percent, but this is better because BRI Syariah margin specified in the credit segment is relatively small.

BRI Syariah claimed its SME financing margin lower than that offered by most competitors. "Our margin of one percent per month or 12% per year for micro-enterprises, and 11% per year for small and medium enterprises," said Eko B Suharno, Director of BRI Syariah, a few days ago.  (source)

INDONESIA - EVENTS - Islamic Banking Products and Services Need to Be Improved

www.investor.co.id - BANDUNG - Islamic banking products and services need to be improved as currently assessed insufficient to meet the interests of the customer making it difficult to compete with conventional banking products and services.
Chairman of the Indonesian Association of Islamic Banking (Asbisindo) Yuslam Fauzi in Bandung, Tuesday, said the number of Islamic banking products in Indonesia is lagging behind Islamic banking in Malaysia.
"This form of Islamic banking products in Malaysia is more diverse. Reason is because they are eight years earlier to build the Islamic banking. They year 1984, while our 1992. So they are more in the future," said Yuslam on the sidelines of an international seminar that took place since the Islamic financial Monday (7/5). (source)

INDONESIA - EVENTS - WORLD BANK SURVEY: Islamic finance is not limited to Muslim customers

www.bisnis.com - BANDUNG: As a phenomenon that also occurs in Europe, Sharia-compliant financial services users in Indonesia is also not limited to the Muslim religion, but also non-Muslims.
The facts found by the World Bank during a survey of the Islamic financial sector in Indonesia.

 The survey was conducted on 100-based Islamic financial institutions include banks, rural banks, pawnshops PT, insurance, financing, and venture capital. (source)

MALAYSIA - HALAL - Business briefing : effective business entry into the Indonesia Halal Market

wwwhdcglobal.com  - Date : 8 May 2012 (Tuesday) - Time : 1:30 pm – 6:00 pm - Venue : Matrade Exhibition Convention Centre, Level 3, East Wing, Menara MATRADE, Off Jalan Duta, Kuala Lumpur

HDC is pleased to invite all export ready companies and SMEs to attend “Business Briefing: Effective Entry into Indonesia Halal Market.” This will be our second briefing under the same series, whereby the 1st business briefing was held on 14th March 2012 for market entry to Republic of China.

The event is in collaboration with Majelis Ulama Indonesia (MUI) and Indonesian Embassy. MUI will be represented by their Director of LPPOM/MUI, to present a paper on Indonesia Halal certification process and is ready for Q&As relating to issues faced by our exporters on Halal certification requirements for Indonesian market.  (source)

INDONESIA - BANKING - Bank Muamalat Increases Retail and MSME Financing

www.indonesiafinancetoday.com - Bank Muamalat targets a finance portfolio growth of 40-50 percent in 2012 to Rp 31.46 trillion-Rp 33.71 trillion. (IFT/STANLIE)

JAKARTA (IFT) – PT Bank Muamalat Tbk plans to increase its retail as well as its micro, small and medium enterprise (MSME) finance portion to 60 percent of this year’s total finance portfolio from 55 percent last year. Its strategy for finance portfolio growth is to minimize risks that may affect non-performing finance (NPF). (source)

SINGAPORE - FINANCE - CIMB Singapore aims to approve S$100m Islamic loans for SMEs

www.thesundaily.com - KUALA LUMPUR (March 2, 2012): CIMB Bank, which started its Islamic commercial banking operations in Singapore last year, aims to approve S$100 million this year for the small and medium enterprises (SMEs) in the republic.
"We are targeting about S$100 million for SME financing this year. At the moment, we already have about S$30 million on our balance sheet with a healthy pipeline for the full year.
"The take-up rate of Islamic financing for SMEs has been encouraging although it is very early days for the industry in Singapore," said Badlisyah Abdul Ghani, CIMB Group's head of group Islamic banking division.
He said the bank's Islamic commercial banking operation has been growing in Singapore although the Muslim community makes up less than half of the population. (source)

MALAYSIA - HALAL - Malaysian SMEs urged to get halal certification

www.btimes.com.my - KUALA LUMPUR: Local small and medium-sized enterprises (SMEs), including Muslim entrepreneurs, are urged to get halal certification to seize lucrative opportunities in the global halal sector.


Muslim SMEs should discard the assumption that their customers would believe their products are halal by virtue of being muslims.

Founder-director of the World Halal Forum (WHF) Jumaatun Azmi said there is still a significant gap in the implementation of halal standards by the local SMEs. (source)

INDONESIA - BANKING - REGULATIONS - BI eases Islamic banking to boost SME

WWW.REPUBLIKA.CO.ID, JAKARTA – Bank Indonesia (BI) is ready to ease some provisions to help Islamic banking distributing its financing to Small and Medium Enterprise (SME). The measure is expected to boost the financing in SME sector.

The flexibility is given to Islamic banking providing mudharabah and musyarakah arrangements. The customers, for example, can payback the installment of financing at the end of the period. “For example, in two year contract, the customers pay off by the end of the second year,” the The Director of Directorate of Islamic Banking BI, Mulya Effendi Siregar, said.  (source)

INDONESIA - BANKING - FINANCING SMEs: Target Muamalat Rp29, 12 trillion

www.bisnis.com - JAKARTA: The contribution of SME financing Muamalat this year is projected to reach 60% of total financing.
"This year the total funding is expected to reach Rp 29.12 trillion. Number is up by 30.16% compared to last year. Of the total financing to SME financing will contribute to Rp 17.47 trillion, or 60%," said president director Arifin Thursday Muamalat Arviyan February 2, 2012.  (source)

INDONESIA - BANKING - Not So Corporate Funding Priorities of Islamic Banking

Jakarta (17/11) - The financing of the corporate sector is still not a top priority of Islamic banks. Until recently the main focus of Islamic bank financing is in the micro sector. Nevertheless, the corporate sector is still a consideration when running secar maximum investment climate.

The statement Director of Bank Negara Indonesia (BNI) Syariah, Rizqullah in the event the Company Obtain Financing Opportunities seminar Sharia, Kamias (17/11). He said BNI's sharia finance is still focuses on medium sector. "Because we are still growing stage it is more concentrated in building a foundation that is focused on the middle class down," he said.  (source)

INDONESIA - FINANCE - Mandala Multifinance Obtains $ 25 Million Murabaha Syndicated Loan Credit

JAKARTA - PT Mandala Multifinance Tbk (MFIN) gain in the form of murabaha syndicated loan of U.S. $ 25 million or about Rp214, 225 billion on 14 November 2011.

According to the Corporate Secretary MFIN Mahrus in a statement here on Tuesday, in the form of murabaha facility is derived from several financial institutions. (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 - 2012, Bank Permata Syariah Target Market Increase Five Percent

REPUBLIKA.CO.ID, JAKARTA - sharia business unit (UUS) Bank Permata, Permata Syariah Bank, target of sharia would gain market share by five per cent of the country in 2012. Currently, the total market share of 3.4 per cent of Islamic banking, Bank Permata Syariah still has a minimal contribution by two percent.

According to the Head of Bank Permata Syariah, Ahmad K Permana, Permata Syariah Bank will develop business on all fronts. Bank Permata Syariah During this new focus on consumer businesses such as financing vehicles. (source)

INDONESIA - BANKING - Bukopin Syariah launches gold pawn service in 2012

JAKARTA - President Director of Bank Syariah Bukopin Riyanto said it will launch a new gold pawning service in 2012.

"Currently we do not have a mortgage product of gold, the plan will begin next year," said Riyanto, when the show opened with here on Monday.

According Riyanto, gold pawning product is still assessed on risk management.

He also admitted that his side with other Islamic banks which already have a mortgage product this gold. "Each bank has a different strategy, we prefer the strategy on SME financing," he said. (source)

INDONESIA - BANKING - Assets BRI Syariah reach Rp 7.7 trillion

REPUBLIKA.CO.ID, JAKARTA - PT Bank Rakyat Indonesia (BRI) Sharia assets recorded an increase to 12 percent in the second quarter of this year. Director of BRI Syariah, Ventje Rahadrjo, said there is significant asset growth from March 2011 to Rp 6.9 trillion to Rp 7.7 trillion in June 2011. (source)

WORLD - IDB governors demand urgent action on IF promotion

The 36th Annual Meeting of the Board of Governors of the Islamic Development Bank (IDB) which concluded on June 30 in Jeddah disappointingly came up with no life-changing resolutions perhaps at a time when many of its member countries are experiencing crucial challenges to their political and economic governance. (source)