INDONESIA - BANKING - Islamic Finance Industry Need Government Support

www.investor.co.id  - JAKARTA - Indonesia's Islamic financial industry can go fast if it gets government support. With its potential, the Islamic financial industry in the country can shift the Islamic industry in Iran, Malaysia and other countries in the Middle East. Until the first half of 2012, total assets of Islamic financial industry nationwide reach Rp 285 trillion.
This is expressed by the Executive Director of Islamic Banking Bank Indonesia (BI) Eddy Setiadi and Chairman of the Board of the National Islamic Council of Ulama Indonesia (DSN-MUI) KH Ma'ruf Amin when delivering a speech at the conferment ceremony Investor magazine Best Syariah 2012 in Jakarta, Wednesday (8 / 8).  (source)

INDONESIA - FASHION - Indonesia Set to Become Islamic Fashion Capital by 2020

www.thejakartaglobe.com - The Industry Ministry is hoping to turn Indonesia into an Islamic fashion capital by 2020, and is looking to Europe as its main export market in the future.

Euis Saedah, the The Industry Ministry’s director general for small- and medium-scale industries said on Tuesday that Islamic clothing made by Indonesian designers has garnered widespread enthusiasm, citing an abundance of orders and interest from foreign buyers following last year’s International Islamic Fashion Fair in Jakarta.

Euis said Indonesia’s modern, middle-class Muslims have fueled innovations and creativity in Islamic fashion.  (source)

INDONESIA - BANKING - This is the role of Sharia Develop Creative Industries

WWW.REPUBLIKA.CO.ID, JAKARTA - Creative industries in Indonesia began to squirm. An important role should be increased to develop the banking industry.
Compared to the other, the creative industries does not make a major contribution such as agriculture, which is still less than 10 percent. But a growing number of potentially interested persons will contribute greater.
The role of banks, Islamic banks in particular, are also required to develop this industry. Bank-financing could provide affordable financing for entrepreneurs who want to develop a creative endeavor.
For the creative industries, the ease of financing for the business is important. "Mainly for young entrepreneurs who have no problems with collateral," said the Special Minister of Tourism and the Creative Economy, Halituah Simarmata, in a discussion entitled "The Role of Islamic Banking in the Creative Industries" at the Jakarta Convention Center on Wednesday (27/6). (source)

INDONESIA - BANKING - Product development biggest challenge

www.bisnis.com - MAKASSAR-limited products of Islamic banks today become one of the challenges in efforts to develop Islamic banking industry in capturing the opportunities that exist.
 Chairman of the Association of Islamic Economist (IAEI) Bambang PS Brodjonegoro said the lack of Islamic banking products is one of three factors challenge the growth of Islamic finance is not significant.
 According to him, two other external factor is the absence of Islamic or Shariah compliance standards compliance standard that allows the distinction of compliance, tailored to the relevant bank or central banks concerned. Another factor is a matter of international Islamic institutional infrastructure that is still not united in substance.
 "Islamic products is relatively limited, so that consumers are still thinkers-thinkers to switch to the Shariah, it is also faced by the countries of the Islamic financial development," he said as a keynote speaker in the Islamic Banking Research Forum-5 that was held at the Muslim University of Indonesia ( UMI) Makassar today, Tuesday (26/06/2012).  (source)

INDONESIA - EVENTS - Government Seriously Develops Indonesian Islamic Financial Industry

www.depkeu.go.id - Jakarta, 20/6/2012 MoF(Fiscal) News - Opening the International Conference on Islamic Capital Market in Jakarta on Tuesday, Vice Minister of Finance I Anny Ratnawati conveyed that the government of Indonesia commits to develop Sharia financial industry as a part of national economic development. This commitment is reflected in the development of Islamic investment products (State Islamic Securities/Sukuk), which are periodically issued by the government through Ministry of Finance.
She explained, the development of Sharia investment products is higher than the conventional ones since the issuance of law and regulations related to the Islamic financial industry in 2008. “The amount of sukuk issued by the government on December 31, 2008 was only USD429 million. Yet, it increased by 1.898 percent to USD8.57 billion on December 31, 2011,” she said. Meanwhile, the amount of the government bonds increased of around 49 percent from USD82.35 billion to USD122.40 billion in the same period. Therefore, she welcomed investors’ enthusiasm in each Sharia investment product issued. (source)

INDONESIA - CAPITAL MARKETS - Indonesia eyes the role as Asian sukuk hub

WWW.REPUBLIKA.CO.ID, JAKARTA - Government is expected to develop Indonesian sukuk market and boost Indonesian role as a hub for Asian sukuk. The project sukuk for infrastructure financing is planned to be issued on the second semester.
The Director General of Debts Management in the Ministry of Finance, Rahmat Waluyanto, mentioned that issuing local currency sukuk is among government’s measures to improve Indonesian sukuk market.
"Besides that, we can use state sukuk as monetary instrument and source of IDR," Waluyanto said on Monday.  (source)

INDONESIA - EVENTS - Intl Conference Islamic Capital Markets Jakarta

 PRESS RELEASE
INTERNATIONAL CONFERENCE ON ISLAMIC CAPITAL MARKET IN 2012
"Toward Resilient, Robust, and Competitive Islamic Capital Markets"
Jakarta, 19-20 June 2012
I. International Conference on Islamic Capital MarketA. International Conference on Islamic Capital Market in 2012 was held in cooperation between the Capital Market Supervisory Agency and Financial Institution Supervisory Agency (Bapepam-LK) by the Islamic Research and Training Institute, Islamic Development Bank (IDB-IRTI).
2. The purpose of this conference is to learn more Islamic capital market role in the Islamic financial system and how it impacts on the increased investment, market stability, and an equitable socio-economic development. 
3. In addition, the conference is to be one potential means to introduce Islamic capital market in Indonesia to the international community in developing and strengthening relations between the Islamic capital market regulator Bapepam-LK as with other state regulators and market participants
4. Furthermore, the main focus of this conference is to discuss current matters relating to Development and prospect; Market Reform and Infrastructure Development: Regulatory aspect of Islamic capital markets; and Strategy for development of capital market products for public sector financing. The discussion will be divided into two main parts, namely the panel discussions and paper presentations.BAPEPAM-LK (source)

INDONESIA - EVENTS - Muslim World Biz (Jakarta JCC Sept 12-16, 2012)

MALAYSIA - TAKAFUL - Malaysia's Contribution To Global Takaful Industry To Increase To US$2.4 Billion

www.bernama.com - KUALA LUMPUR, June 13 (Bernama) -- Malaysia's contribution to the global Takaful industry is expected to increase to US$2.4 billion this year from US$1.4 billion in 2011.

Ernst and Young Partner (Assurance) Brandon Bruce Sta Maria said the estimation was based on expectations that the industry's growth trend would be sustained for the next two years.

"Malaysia's market grew 24 per cent to touch a US$1.4 billion contribution last year at an average of US$141 million per operator," he told Bernama on the sidelines of the World Takaful Conference: Asia Leaders' Summit 2012 here today.

For the South East Asian region, Sta Maria expected the contribution to the industry to increase to US$3.4 billion from the US$2.2 billion achieved last year.  (source)

SINGAPORE - SPEECHES - WIBC Singapore 2012

The Next Phase in Islamic Finance  

Ravi Menon

Managing Director, Monetary Authority of Singapore

Opening Address at the 3rd Annual World Islamic Banking Conference: Asia Summit

Grant Hyatt Singapore

5 June 2012

Dr Ahmad Mohamed Ali Al-Madani, President, Islamic Development Bank,
Your Excellencies, distinguished guests, ladies and gentlemen, good morning.
And to all our foreign guests, a warm welcome to Singapore.

An Increasingly Difficult Conjuncture

We are meeting here for the 3rd Annual World Islamic Banking Conference Asia Summit, at a time of increasing stress in the global economy and financial system.  (source)

INDONESIA - CLIPS - BIFIS 2012 Bandung (AmilinTV - 4 clips)

Exclusive Interview - A. Riawan / Rushdi Siddiqui / Sheikh Nizam Yakubi / Ahmad Heryawan
Event: Bandung Islamic Finance and Investment Smbmit 2012
Venue: Grand Royal Panghegar Bandung, Indonesia
Date: 29th - 30th May 2012

SINGAPORE - EVENTS - Islamic banks 'can fill funding gap': S’pore Monetary Authority

www.thejakartaglobe.com -Islamic banks are priming themselves to capture a larger share of the global trade and project financing market, as European banks pull back funds to mend balance sheets back home.

The Monetary Authority of Singapore's (MAS) managing director Ravi Menon noted on Tuesday that trade and infrastructure development is naturally compatible with Islamic finance, which has a focus on supporting real productive activities.
At the World Islamic Banking Conference: Asia Summit in Singapore, he urged Islamic bankers to diversify into this space.  (source)

INDONESIA - HALAL - INDHEX 2012 Indonesia Halal Expo (July 5-8, 2012 Jakarta)

www.halalmui.org - LPPOM MUI as halal certification bodies and the world halal center of the duty to disseminate information to the public about the products certified halal. After the success of Indonesia Halal Expo (INDHEX) 2011, again held LPPOM MUI Halal Expo Indonesia (INDHEX) 2012.

With the theme "Halal is My Life", INDHEX 2012 will be held on June 5 to July 8, 2012 at Exhibition Hall SMESCO Building, Jakarta. In addition to disseminating and promoting halal products, the expo will also be held lawful business meeting of producers, suppliers and distributors of halal (Halal Bussiness Forum), a variety of seminars, workshops and competitions themed halal products will also enliven INDHEX 2012.

INDHEX 2011 was held on 24-26 June 2011 at the House SMESCO Jakarta, attended by 128 companies from within and outside the country dg 8316 the number of visitors.

Detailed information about INDHEX 2012 can be downloaded here.  (source)

INDONESIA - BANKING - Maybank Islamic banking can spur national passion

www.bisnis.com - BANDUNG: The presence of the largest financial services group from Malaysia, Malayan Banking Berhad or Maybank, who is preparing to set up a home office base in Indonesia is believed to spur the development of Islamic banking passion grew more aggressive.
 Chairman of the National Sharia Council (DSN) Maruf Amin said the planned opening of the office because Indonesia has an open market of Islamic banking.
 "Indonesia has a Muslim population of the lot. It is a marketable, "he said in Bandung Islamic Finance events & Investment Summit (BIFIS), 2012, Tuesday (May 29).  (source)

INDONESIA - HR - BI design incentives for training Islamic center

www.bisnis.com - BANDUNG: Bank Indonesia plans to provide incentives for establishing Islamic banking training center. That, to improve the quantity and quality of human resources in order to sustain the industry sharia grow faster.
 Deputy Governor of Bank Halim Indonesia Alamsyah said Islamic banking is currently occupying the number two in the world in the number of products and the number of banks. However, to increase its market share will still take 15-20 years.
 "To hoist the market share of two things must be addressed. The first preparation of infrastructure faster, especially in the context of regulation and two human resource development, "he said after a speaker in Bandung Islamic Finance & Investment Summit (BIFIS) 2012, Wednesday (30/5). (source)

INDONESIA - ARTICLES - Deposit behaviour in Indonesia Islamic banking : do crisis and fatwa matter?

Deposit behaviour in Indonesia Islamic banking : 

do crisis and fatwa matter?
In: Indonesia Islamic Banking Research Forum 2011, 16-17 December, 2011, Padjajaran University, Bandung.
Abduh, Muhamad and Sukmana, Raditya (2011)

Abstract -This paper attempts to examine factors that influence deposit behaviour of bank depositors in Indonesia Islamic banking. Several explanatory variables are tested namely interest rate, Islamic deposit rate, inflation, income as well as financial crisis. Cointegration test and impulse response functions are utilized to examine the long run and short run relationship among the variables. The period of analysis is from December 2000 to January 2011 (122 number of observation-monthly data). The results show that crisis has no significant impact on the volatility of Islamic banks deposits. This suggests that the Islamic banks’ expansion towards the real economic activities by partnership contracts is one of the best practices. It depicts also that depositors have a strong believe towards the resilience of Islamic banks against financial crisis and thus, they did not withdraw their money excessively during the crisis. However, it is also found that interest rate and income are still dominating the people’s decision to deposit their funds in Islamic banks which in turns, indicating the effectiveness of the anti-riba campaign in Indonesia is still low and thus, the strategy of educating the people need to be redesigned.  (source)

INDONESIA - EVENTS - IDB: Islamic Finance Must Focus of Economic Development

www.investor.co.id - BANDUNG - The strengthening of Islamic finance in sustainable economic development should focus on efforts to promote inclusive economic development and not on short-term trade financing.
Thus the assertion of President Islamic Development Bank (IDB) Ahmad Mohammed Ali at the opening of the international Islamic finance seminar in Bandung on Monday. Ali said, inclusivity in the development of Islamic economics and finance, among others in the Islamic banking sector, stock market products, micro-insurance, financial institutions, especially Islamic Zakat and waqaf institutions.
"In the last 10 years have proven the Islamic financial systems of a significant opportunity to open up and improve public access. Though small, Islamic microfinance industry has shown good growth," he said.  (source)

INDONESIA - EVENTS - Islamic Finance in West Java Reaches 5%

www.investor.co.id - BANDUNG, West Java Governor Ahmad Heryawan said the Islamic financial system has been used about 5% in the economy in West Java.This amount is higher than the percentage of use of the concept of Islamic economics in the national economy reached 4.2%."Islamic financial system has been used for more than five percent in West Java, is higher than the national percentage for the composition of a large Muslim population in West Java," said Ahmad at the residence of the governor office in Bandung West Java, on Sunday night (6/5). (source)

INDONESIA - BANKING - Islamic Banking Grows 40.2 Percen

WWW.REPUBLIKA.CO.ID, BANDUNG - Bank Indonesia (BI) noted the Islamic banking industry in Indonesia grew 40.2 percent in the last five years in the conventional banking growth over the same period of 16.7 percent. BI deputy governor Halim Alamsyah in his speech at the opening of the International Seminar on Islamic Finance in London on Monday (7/5).
With such developments, the Islamic banking Halim believes contributed to the national banking industry will increase from 4.1 percent currently to 15-20 percent in the next 10 years. Until 2011, total assets reached Rp 214 trillion sharia, or about 23.8 billion U.S. dollars made up 69.5 percent of the assets of Islamic banking and sukuk 18.7 percent. (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)