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 - BANKING - MURABAHAH GOLD: Islamic banks asked for BI issues new rules

www.bisnis.com - JAKARTA: Islamic banks urged the central bank would soon issue a rule for gold murabaha products, financing products to the ownership of gold in installments.
One of the immediate bank Bank Indonesia (BI) to issue rules murabaha financing agreement for its gold holdings are PT Bank Rakyat Indonesia Syariah (BRI Syariah).
"We urge the Bank to soon issue a rule the gold murabaha because the product is needed by customers," said Maryana Yunus, Head of Product Development BRI Syariah told Business Today.  (source)

INDONESIA - BANKING - Proposed Bank Syariah funds discussed DSN-MUI

WWW.REPUBLIKA.CO.ID, JAKARTA - Bank Syariah Fund proposal or Profit Equalization Reserve (PER) is now the middle of the Shariah Council of the National Assembly discussed Ulama Indonesia (DSN-MUI). Evaluated the proposed use of funds essential to encourage a more competitive product syariah bank.

Chief DSN-MUI, Ma'ruf Amien acknowledged that the proposed use of funds do not have a fatwa. But, he admitted, sharia banks urged to immediately realize the proposed use of funds.

"We will discuss in terms of how the fatwa, what should be a fatwa or not. This month we discuss," he said on Thursday (16/2).  (source)

MALAYSIA - REGULATIONS - Bank Negara clarifies Fatwa ruling on forex trading Read more: Bank Negara clarifies Fatwa ruling on forex trading (2)

www.nst.com.my - KUALA LUMPUR: Bank Negara Malaysia said today that only licensed financial institutions and money changers are allowed to conduct foreign currency trading.

This statement came about after the National Fatwa Council's ruling on Wednesday that forex trading is forbidden for Muslims. (source)

MALAYSIA - REGULATIONS - Foreign Currency Trading

Foreign Currency Trading
Last Updated : 17 Feb 2012
Source By : www.bnm.gov.my

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FOREIGN CURRENCY TRADING

Bank Negara Malaysia wishes to inform the public that buying and selling of foreign currency in Malaysia is only allowed with licensed commercial banks, Islamic banks, investment banks  and international Islamic banks as provided for under the Exchange Control Act 1953 and  with licensed money services business providers (money changers) as provided for under the Money Services Business Act 2011.

In addition, Shariah-compliant financial products, including foreign exchange related transactions, offered and transacted by licensed Islamic financial institutions are approved by the Shariah Committee of the respective financial institutions with endorsement from the Shariah Advisory Council of Bank Negara Malaysia.

Bank Negara Malaysia
16 February 2012

INNDONESIA - REGULATIONS - DSN agree equalization gains proposal to a number of conditions

JAKARTA: The National Shariah Council DSN approve the proposed equalization gains when the fund was taken from the bank's results instead of the value of the results that have not been distributed.
Director of Bank Indonesia Sharia Banking Mulya National Shariah Council expresses Siregar (NSP) to evaluate the gains from the proposed equalization fund (Preserve equalisation reserve / PER) taken from the lopsided results have not been divided will diminish the customer.  (source)

INDONESIA - GOLD - Ma'ruf Amin: Transactions Gold Can, Origin Do Speculation

REPUBLIKA.CO.ID, JAKARTA - National Sharia Council of Indonesian Ulama Council (MUI DSN) back gold is affirming that the transaction is a business that is allowed in Islamic banking. DSN MUI Chairman Ma'ruf Amin said it is set in a fatwa issued by the agency. "From the DSN, we had been given permission.

We'll give certification Golden Trader Indonesia Sharia (GDIS). Selling gold through Islamic banks should, as well as give a loan (mortgage), "he asserted when found on Saturday (17 / 9). (source)

INDONESIA - FIQH - The results of disadvantaged Mudharabah Fix For Sharia Banks?

REPUBLIKA.CO.ID, JAKARTA - The Indonesian Council of Islamic Ulema Council (MUI DSN) to assess the discourse of Bank Indonesia to apply for a stable outcome mudaraba in Islamic banking industry must be in agreement with the customer.

This is expressed DSN MUI Chairman Ma'ruf Amin, when found Republika, Saturday (17 / 9). "If anyone was detained, there must be an agreement with them to agree or not," he asserted. (source)

INDONESIA - ZAKAT - Baznas-MUI Fatwa Association Launches Book of Zakat

Jakarta (25 / 8) - The National Agency for Amil Zakat (Baznas) in collaboration with the Indonesian Ulema Council (MUI) has launched a book set Zakat MUI fatwa. The book contains a collection of zakat fatwa from 1982 to 2011 this was launched at the Office MUI Jl. Proclamation No.. 51 Jakarta, Wednesday (24 / 8) afternoon. (source)

INDONESIA - HALAL - Pilgrims uninformed about disease risk

Many Indonesians who travel to Saudi Arabia to perform the haj pilgrimage are not aware that they are required to be vaccinated against Meningococcal Meningitis prior to their departure, the government says.

The Health Ministry’s head of disease control and environmental health, Tjandra Yoga Aditama, said that many Indonesians who traveled to Saudi Arabia on the minor haj pilgrimage, or umrah, or as migrant workers, did not know about the government regulation, due to a lack of information and education about the disease. (source)

INDONESIA - MUI - MUI Slaps Fatwas on Sale of Bank Notes, Fireworks

With Ramadan already into its second week, the Indonesian Council of Ulema has come out to declare two activities popular at this time of year forbidden: Paying to have money changed and the sale of fireworks.

Abdusshomad Buchori, head of the East Java chapter of the council, also known as the MUI, said the sale of small denominations or crisp new bank notes for profit was haram. (source)

INDONESIA - REGULATIONS - DSN MUI issues Fatwa on Sharia Commodity Futures Exchange

REPUBLIKA.CO.ID, JAKARTA - The National Islamic Council of Indonesia Ulama Council (MUI DSN) inaugurated the Islamic fatwa commodity futures exchanges. This is in line with the new DSN MUI fatwa issued number 82 year 2011 about commodity futures exchange mechanism based on Islamic principles.

According to members of the DSN MUI, Agustianto Mingka, DSN MUI fatwa was issued due to public demand on the covenant requirements of sharia-compliant commodity exchanges. "The goal is to provide a choice of money market transactions," he told Reuters. (source)

INDONESIA - REGULATIONS - Finished end of this year, Fatwa will rename Tawarruq

REPUBLIKA.CO.ID, JAKARTA - The National Islamic Council of Indonesia Ulama Council (DSN MUI) fatwa about tawaruk admitted hoped could be completed this year. However, there will be significant changes, especially of the terms used. (source)

INDONESIA - REGULATIONS - Fatwa on Tawarruq nears completion

The insistence of Islamic banking to the issuance of fatwas Tawarruq now beginning to get a reply. Until now the National Sharia Council (DSN) is still brewing targets in this fatwa to be issued later this year. "Inshallah this year," said a member of DSN MUI, Adiwarman Azwar Karim.

However, the DSN will not be using the term but with isitilah Tawarruq commodity trading in the stock. According Tawarruq term use will cause the sense that misleads. This happens because the trading activities that aim to get cash is in practice now involves only two parties only. (source)

INDONESIA - GENERAL - Economist: BBM Problem Not Competence MUI

REPUBLIKA.CO.ID, Semarang - Economist Sultan Agung Islamic University (Unissula) Semarang, Sumiati point, argues that the problem of fuel oil (BBM) is not the realm of the Indonesian Ulema Council (MUI). Because, this is a matter of pure economics.

"MUI fatwa haram does not fit at all. This is a matter of pure economics. Thus, the existence of the fatwa, as if people had been frightened. Should MUI enough to handle matters dealing with religion," said Point Sumiati, in Semarang, Thursday (30 / 6). (source)