INDONESIA - BANKING - BI to Apply Minimum Down Payment Regulation to Islamic Banks

www.bisnis.com - JAKARTA: After a minimum down payment credit policy applied to conventional banks and multifinance since mid-June, Bank Indonesia will ensure to apply similar regulation to Islamic banking.

Bank Indonesia (BI) Islamic Banking Department Executive Director Edy Setiadi said the preparation of minimum down payment regulation for Islamic Bank needs more time because this type of bank has limited data resources compared to conventional banks.

"The principle is BI also has to make similar regulation for Islamic banks," he said yesterday (8/13).  (source)

INDONESIA - BANKING - Sharia will PermataBank Fund in Car Segment

www.investor.co.id - JAKARTA-Islamic PermataBank will do the financing on four-wheeled motor vehicle segment starting second semester of 2012 because it saw an opportunity in that segment.
"So far we have only done two-wheeler financing. Perhaps this second half we got into a four-wheel because we see there are opportunities there," said Chief Syariah PermataBank, Ahmad K Permana in Jakarta, Wednesday (8/8).
He said the motor vehicle financing done in collaboration with PT Astra International Tbk. Astra has been preparing for Islamic financing schemes for its clients.  (source)

INDONESIA - FINANCE - Indonesia Sets Rules for Home, Vehicle Loans to Prevent Bubble

www.thejakartaglobe.com - The central bank introduced a regulation on Friday aimed at preventing potentially dangerous bubbles by encouraging prudent banking practices and curbing excessive consumer loan growth.

Under the regulation, Bank Indonesia will limit the size of housing loans and set a minimum for down payments for vehicle purchases.

“Considering that there’s an increasing demand for housing and automotive loans and an excessive growth in both segments, Bank Indonesia sees a need to introduce more prudent practices in loan disbursements,” the central bank said in a statement published on its Web site.  (source)

INDONESIA - BANKING - CIMB Niaga Pumps $11 Million Into Shariah Unit

Bank CIMB Niaga, Indonesia’s fifth-largest lender, has injected Rp 100 billion ($11 million) into its Islamic banking subsidiary to increase its lending, it said in a statement on Thursday.

The new money brings CIMB Niaga Syariah’s capital to Rp 450 billion as of December, the statement added.  (source)

INDONESIA - BANKING - CIMB Niaga Gelontorkan Rp 100 billion to the Sharia Window

Jakarta - PT Bank CIMB Niaga Tbk (BNGA) made additional capital to business units sharia Rp 100 billion. With the additional capital, paid up capital of CIMB Niaga Syariah recorded at Rp 450 billion as of December 2011.
"The addition of capital to CIMB Niaga Syariah Management CIMB Niaga is a commitment to support the growth of Islamic banking business, especially finance, and maintain a capital adequacy ratio (Capital Adequacy Ratio / CAR)," said Director of Retail Banking and CIMB Niaga Syariah Ferdy Sutrisno in a press release on Thursday (29/12/2011).  (source)

INDONESIA - BANKING - Muamalat spur financing konsumser

JAKARTA: PT Bank Muamalat Indonesia Tbk will boost consumer cost sharing from 30% to 40% of the total financing through the establishment of a special division of consumer financing in order to increase product variety.

Complience and Risk Management Director Muamalat Buchari Andi said a September 2011 financing consumption has reached Rp 6 trillion and is expected to reach Rp 7 trillion at the end of this year. (source)

INDONESIA - BANKING - Alijarah Finance Get 300 M From Sinarnmas Bank Syariah

Jakarta (15 / 9). By channeling facility, PT Alijarah Finance (Alif) Indonesia get the funds of Rp 300 billion from the Bank Sinarmas Sharia for financing to the public. This is evidenced by the signing of the Facility Agreement Sharia channeling $ 300 billion between the two sides today, in Alijarah Head Office, Jakarta.

President Director of Alif, Herbudi S. Tomo said Rp 300 billion fund will be used to finance cars and motorcycles. "For car finance period is 4 years and 3 years motor. Everything is disposable murabaha contract," he said. (source)

INDONESIA - FINANCE - Federal Finance Islamic Finance Portfolio Surges 115.86%

JAKARTA (IFT) - PT Federal International Finance, a large-scale motorcycle financingsubsidiary of PT Astra International Tbk (ASII), saw a 115.86 percent surge in its Islamic finance portfolio to Rp 534.99 billion in January-July 2011 from Rp 247.84 billion year-on-year (YOY).  The growth was due to a rise in new vehicle portfolio volume. (source)

INDONESIA - BANKING - AutoMuamalat : strategic solution for car dreams

Jakarta (24 / 8) - Ahead of the holiday like-this, the need for private vehicles, especially cars increasingly felt. This happens because the number of people who want to home to home, met with the family and took off homesickness. No wonder the transaction and the lease of this four-wheeled vehicles increased sharply in moments like this.

So is there any alternative other than cash sale and lease can be made ​​public to get the car in a pinch before the feast day like this? AutoMuamalat is the answer. (source)

INDONESIA - BANKING - Mandiri Injects More Capital into BSM in September Indonesia Breaking News theindonesiatoday.com

Bank Mandiri would still inject unit PT Bank Syariah Mandiri by September 2011 to support its fast growing business.

Pahala N Mansyuri, CFO of Bank Mandiri, told Detik.com Sunday (July 24), that the capital injection has been planned since early this year as part of the state bank's business plan. Mandiri plans to inject about Rp210 billion into BSM. (source)

INDONESIA - BANKING - Bank Muamalat to issue IDR800 billion subdebt

JAKARTA: PT Bank Muamalat Indonesia Tbk is planning to issue minimum IDR800 billion subdebt sharia bond in 2012 to strengthen its capital adequacy ratio.

With the issuance of the subdebt, Muamalat CAR might increase by 4%, Director of Finance and Operational Hendiarto told Bisnis. The bank CAR position in the first half was 11.57%. (source)

FINANCE - Danamon Syariah Set Target for Automotive Financing up to IDR 50 Billion

Jakarta, (24/6). The Islamic window of PT Bank Danamon set target to channel its automotive financing up to IDR 50 billion, and it set target to captive 1.000 hajj markets of which consist of workers who are the member of co-operative shop. As explained by Head of shariah division of Bank Danamon, Prayudha Moelyo during the launching ceremony of automotive financing and hajj management Program at Shangri-La Hotel Jakarta, last Thursday (23/6). (source)

BANKING - Bank Syariah Mandiri Books Net Profit of Rp418.52 Billion

Theindonesiatoday.com - PT Bank Syariah Mandiri (BSM) posted net profit of Rp418.52 billion last year, increased 43.85% compared to Rp290.94 billion in previous year, detikfinance.com reported.

Yuslam Fauzi, BSM's president director, said the profit growth was mainly supported by operating income. BSM booked income from funds distribution of Rp3.45 trillion, rose 38.55% compared to Rp2.49 trillion in 2009.

Meanwhile, BSM's disbursed financing totaled Rp23.97 trillion last year, grew by 49.21% from Rp16.06 trillion a year earlier.(full story)

BANKING - Car Sales Leading Shariah Loans in Indonesia

Jan. 25 (Bloomberg) -- Record car sales in Indonesia helped fuel 50 percent growth in Shariah-compliant banking assets last year and Islamic lenders are setting up booths at automobile shows to further develop the market.

PT Bank Muamalat Indonesia, the country’s oldest Shariah- compliant lender, said consumer loans jumped 40 percent in 2010 after taking part in exhibitions last year. PT BCA Syariah, the Islamic unit of Indonesia’s biggest financial services company by market value, offers a rate of 11 percent on a five-year car loan. PT Bank Syariah Mandiri also attends the shows.

Tapping Indonesia’s burgeoning consumer loan demand will help the country’s Islamic finance industry catch up neighboring Malaysia, the world’s largest sukuk issuer. Shariah banking assets in Indonesia, home to the world’s biggest Muslim population, make up 3.2 percent of the total, compared with about 20 percent in Malaysia, after the government lagged behind in changing tax laws and offering incentives to spur growth. (source)