INDONESIA - BANKING - Indonesia to Allow Currency Hedging for Banks: Islamic Finance

www.thejakartaglobe.com - Indonesia will let Shariah-compliant banks hedge against exchange-rate movements to spur growth in Islamic financial assets and narrow the gap with Malaysia’s industry, which is seven times larger.    

Bank Indonesia, the National Shariah Board and the Indonesia Institute of Accountants have approved the instruments, available in Malaysia since 2006, Adiwarman Azwar Karim, Jakarta-based vice chairman of the board’s Islamic capital market working committee, said in an Aug. 3 interview. The central bank said it is working on regulations, declining to say when they would be finished.     (source)

INDONESIA - CAPITAL MARKETS - Indonesia Company Sukuk Shortage Curbs Returns: Islamic Finance

www.thejakartaglobe.com - Indonesia’s three best-performing Islamic bond funds say a rebound in corporate sukuk sales is failing to keep up with demand from investors chasing higher returns as government yields decline.   

Insight Investments Management’s top-ranked I-Hajj Syariah Fund wants to boost company holdings from 80 percent if more securities become available, President Director Tony Henri said in an interview in Jakarta last week. Akbar Syarief, fund manager at MNC Asset Management, overseeing the second-best performer, said his confidence in finding buyers is not matched by certainty there will be sufficient supply.   

“Right now the concern is that when money comes in, there may not be securities to invest in,” Jakarta-based Syarief, whose MNC Dana Syariah vehicle returned 3.8 percent this year, said in a June 26 interview. “Corporate sukuk will always be in high demand.”    (source)

INDONESIA - CAPITAL MARKETS - So Muamalat Rp800 Billion Increase Value of Sukuk

www.bisnis.com - JAKARTA: Indonesia Tbk, PT Bank Muamalat increase the value of emissions from the subordinated sukuk plans Rp500 billion to Rp800 beginning billion, as strong demand from investorsHendiarto, Director of Finance and Operations Bank Muamalat, said the incoming requests from investors to the sukuk subordination (subdebt) of Phase I reach Rp1, 13 trillion, much higher than the initial offer Rp500 billionThe high demand is the reason for the company to increase the value of emissions to Rp800 billion, or 60% higher than the supply."It will be decided in the near future, but indications are we will take up to Rp800 billion," he told Business, Monday, June 18, 2012.  (source)

INDONESIA - CAPITAL MARKETS - Muamalat: Measures to be Rp800 billion, for the 10.125%

www.bisnis.com - JAKARTA: Indonesia Tbk, PT Bank Muamalat increase the value of emissions from the subordinated sukuk plans Rp500 billion to Rp800 beginning billion, as strong demand from investors.
Hendiarto, Director of Finance and Operations Bank Muamalat, said the incoming requests from investors to the sukuk subordination (subdebt) of Phase I reach Rp1, 13 trillion, much higher than the initial offer Rp500 billion.
The high demand is the reason for the company to increase the value of emissions to Rp800 billion, or 60% higher than the supply.
"It will be decided in the near future, but indications are we will take up to Rp800 billion," he told Business Today Monday (18/6).  (source)

INDONESIA - LEASING - Semester II, Al Ijarah Muamalat Acquisition Completed

WWW.REPUBLIKA.CO.ID, JAKARTA - Bank Muamalat plans to complete the acquisition of Al Ijarah Indonesia Finance (Alif) in the second half. For the acquisition Muamalat spend about Rp 70 billion.

"Target is completed in the second half and it has been approved in general meeting of shareholders," said Director of Compliance and Risk Management of Bank Muamalat, Andi Buchori, the Office of Bank Muamalat, Monday (28/5). (source)

INDONESIA - BANKING - Financing Bank foreign exchange of U.S. $ 30 million Muamalat

www.bisnis.com - JAKARTA: PT Bank Muamalat Tbk will channel financing in foreign currency to the middle class of U.S. companies $ 30 million in up to 2 months.
  Director of Finance and Operations Muamalat Hendiarto reveal that value is part of the distribution plan of financing in foreign exchange (FX) so far this year as much as U.S. $ 250 million.
  "We currently have funding FX Rp170 million, about 8% of total funds. Our company policy maximum funding 10% of total FX funding. So we're quite prudent FX funding," he said today, Monday, May 28, 2012. (source)

INDONESIA - CAPITAL MARKETS - Market Makers not Affect Muamalat Sukuk Issuance

WWW.REPUBLIKA.CO.ID, JAKARTA - uncertain market conditions affect the Muamalat intention in issuing sukuk. Muamalat Bank plans to issue sukuk next month.

"We still see the conditions," said Director of Finance Bank Muamalat, Hendiarto, through the launch of a new logo Muamalat at Four Season Hotel on Friday (25/5) night.

If market conditions do not allow, then the issue will be postponed until conditions stabilize. However, if market conditions managable, the publishing done in the time planned.  (source)

INDONESIA - BANKING - Gold Pawn Contribute Largest Fee Income Based BSM

WWW.REPUBLIKA.CO.ID, JAKARTA - Pawning gold became the largest contributor to fee-based income for the Bank Syariah Mandiri last in 2011. BSM closed the year with a record Rp 2.2 trillion for the pledge of gold.

But since Bank Indonesia imposed rules, pawn gold in BSM fell by half. As of April pawn value of gold that was left was Rp 1.3 trillion. "BI Directives require banks that have mortgage products to finance a maximum of gold fell $ 250 million," said Director of Financing for Small Micro BSM, Hanawijaya, told reporters on Wednesday (18/4).  (source)

INDONESIA - CAPITAL MARKETS - Bank Muamalat’s Sukuk Sale Might Be in Rupiah

www.thejakartaglobe.com - Bank Muamalat Indonesia said its planned sale of Shariah-compliant bonds would probably be denominated in rupiah.

The nation’s oldest Islamic lender may issue Rp 800 billion ($87 billion) of securities, or as much as Rp 1.5 trillion if the issue is oversubscribed, Hendiarto, the bank’s Jakarta-based finance director, said on Thursday.

He said the lender preferred to issue bonds due in seven to 10 years, adding the bank will decide on the currency and duration of the debt after gauging investor interest in June.  (source)

INDONESIA - BANKING - Muamalat allocated Rp140 billion capex

www.bisnis.com - JAKARTA: Indonesia Tbk, PT Bank Muamalat allocate capital expenditure to Rp140 billion, which is intended for the expansion of branch network and automated teller machines.

Hendiarto, Director of Finance and Operations Bank Muamalat, said the company plans to add about 100 units and 525 units of the branch network of ATM machines during the year.

With these additions, the total office network Muamalat to reach 460 units and the ATM will amount to 1,000 units.  (source)

INDONESIA - CAPITAL MARKETS - Retail investors do not Absorb Maximal SUKRI SR-004

WWW.REPUBLIKA.CO.ID, JAKARTA - Sales of retail sukuk (SR) 004 series in Islamic banks absorbed more big investors. Although segmentation of SR-004 to the retail market, small investors would not absorption maximum.

BRI Syariah managed to sell the SR-004 to about Rp 10 billion in one week supply. However, the number was only 20 percent of its sales target SR-004 BRI Syariah which reached Rp 50 billion.

Group Head of Treasury BRI Syariah, Amir Fukadi recognizes SR-004 is absorbed more big investors particularly those in big cities. Retail investors to absorb the SR-004 from small towns. This segmentation'' toward a large, retail (investors) that little more difficult to absorb,'' he said on Tuesday (13/3).  (source)

INDONESIA - BANKING - Indonesia Shariah Assets Rise Most Since 2003

www.bisnis.com - JAKARTA: The fastest growth in Indonesia's Shariah-compliant banking assets since 2003 is bolstering speculation that the government will meet its target for the industry next year.

Islamic holdings increased 49 percent to 145.5 trillion rupiah ($16.1 billion) in 2011, compared with an average 38 percent expansion over the previous five years, central bank data released on Feb. 15 showed.

That's less than Malaysia, a global Shariah finance hub, where assets total 389.3 billion ringgit ($129 billion), government data show.

Bank Indonesia has said it wants the industry to account for 5 percent of the country's total banking assets by 2013, from less than 4 percent now, and 10 percent by 2015 to 2020.  (source)

INDONESIA - BANKING - Muamalat 100 billion budget for the added network

www.bisnis.com - SURABAYA: Corporation Bank Muamalat budget around 100 billion to increase the network of offices throughout Indonesia this year.
Hendiarto, Director of Finance and Operations Bank Muamalat, said the company plans to add 100 network offices throughout Indonesia in 2012, with investment of around Rp 1 billion per office.
"The addition of a network of offices we do to encourage the acquisition of third party funds (DPK) and the distribution of financing for retail in 2012," he told a news conference today. (source)

INDONESIA - CAPITAL MARKETS - Muamalat put IDR1.25 trillion of sukuk in the pipeline

JAKARTA: PT Bank Muamalat Indonesia Will Tbka financial issue certificates equivalent to Islamic bonds worth IDR1.25 trillion in the first half of the year to strengthen its capital adequacy.
The financial certificates are subordinated sukuk (subdebt) worth IDR800 billion and dollar-denominated senior sukuk worth U.S. $ 50 million, or IDR450 billion (U.S. $ 1 = IDR9, 000). (source)

INDONESIA - CAPITAL MARKETS - EMISSION SUKUK: ready to appoint underwriters Muamalat

JAKARTA: PT Bank Muamalat Indonesia Tbk is preparing for sukuk and subordinated sukuk issuance globally with a value of about Rp1, 25 trillion in the first half of this year.
Arviyan Arifin, Director of Bank Muamalat, describes the preparation of the company conducted a series of processes that are commonly done in the issuance of sukuk. (source)

ASEAN - CAPITAL MARKETS - Islamic Bond Alert

PT BANK SYARIAH BRI: The Islamic banking arm of Indonesia’s second-largest lender by assets may sell sukuk in the next one to two years to support expansion, President Director Ventje Rahardjo told reporters in Jakarta. 

PT BANK MUAMALAT INDONESIA: Indonesia’s second-largest Islamic bank will sell $50 million of dollar-denominated sukuk with a maturity of not more than five years in 2011, Hendiarto, chief financial officer at the bank, told reporters on July 21. The lender is also planning to sell 800 billion rupiah ($89 million) of local-currency Islamic bonds in 2012, Hendiarto said.  (source)

INDONESIA - BANKING - Adjust the Profit Sharing Islamic Banking with BI Rate

REPUBLIKA, JAKARTA --- Decrease in interest rates of Bank Indonesia (BI) requires that a recent decline in margins in Islamic banking. This margin decline primarily for transactions conducted with murabaha contract.

Previously BI rate has been lowered to a level of 6 percent. The decline was not only the conventional banks to lower lending rates. Islamic banks which have a fixed margin for murabaha financing should also start counting again.

According to the Director of the Directorate of Islamic Banking BI, Mulya Effendi Siregar, Islamic banks have to make adjustments to financing such as murabaha with fixed margins after interest rates fell. (source)

INDONESIA - BANKING - Branch Office Open At Muamalat Weekend in PIM

REPUBLIKA.CO.ID, JAKARTA - Bank Muamalat to open branch offices which operate during the weekend on Saturday and Sunday. Muamalat service offices are also open to the night in Pondok Indah Mall (PIM) 1.

The opening of the office was inaugurated on Friday (11/11). On Monday-Friday, branch office that will operate starting at 8:00 to 20:00 pm. While on Saturday and Sunday, the service opened at 10:00 to 16:00 pm.  (source)

INDONESIA - BANKING - Muamalat and Sharia Mandiri tighten domination on market share

JAKARTA: PT Bank Muamalat Indonesia Tbk and PT Bank Syariah Mandiri keeps dominating Indonesia's sharia banking industry, amidst other competitors' late network expansion start.

 

Through mid June, more than half of net profit of sharia banking industry goes to those two major banks. The accumulated profits of both banks reached 52% of total IDR777 billion net profits in the industry during the first half of the year. (source)

INDONESIA - BANKING - Profit Bank Muamalat up 132 %

JAKARTA, KOMPAS.com - PT Bank Muamalat Indonesia Tbk profit of Rp 190 billion per semester-2011. This achievement increased 132 percent compared to the first half of 2010 amounted to Rp 81.82 billion.

Director of Bank Muamalat Arviyan Arifin in exposure to the performance in Jakarta on Thursday (21/07/2011), convey, assets also increased significantly from Rp 15.37 trillion in the first half of 2010 to Rp 23.66 trillion in the first half of 2011. (source)