INDONESIA - CAPITAL MARKETS - Bank Muamalat Upsizes Sukuk Subdebt to Rp800 Billion

www.theindonesiatoday.com - JAKARTA, Indonesia Today - Indonesia's largest shariah PT Bank Muamalat Tbk upsizes the issuance of its syariah (sukuk) subordinated mudharabah to Rp500 billion from initial plan Rp500 billion, first phase of Rp1.5 trillion syariah subdebt program.

The syariah subdebt will have tenor of 10 years. The Indonesian rating agency Pefindo has rated idA (sy) for the subdebt.

The offering is scheduled for June 26, 2012 while listing at stock exchange is set for July 2, 2012.
The proceeds of subdebt will be used for strengthening the capital and supporting the bank's syariah financing. (source)

INDONESIA - REGULATIONS - BI to Strictly Select Foreign Investor in Controlling Local Bank Read more: Latest News | BI to Strictly Select Foreign Investor in Controlling Local Bank

www.theindonesiatoday.com -JAKARTA, Indonesia Today - Central bank, Bank Indonesia (BI), will not only restrict the ownership in banks with certain good corporate governance (GCG) standars, but also strictly select the foreign investors in controlling the local bank, Bisnis.com reported.

Mulya Siregar, executive director for banking research and management department at Bank Indonesia, told in media briefin Tuesday night (June 12) that the strict selection is based on two considerations; first, difficult to know foreign investors' performance or track record and second, difficult to know foreign investors' source of funds. (source)

INDONESIA - BANKING - BNI Syariah Posts Rp89.26 Billion Profit

www.theindonesiatoday.com - JAKARTA, Indonesia Today - PT Bank BNI Syariah booked net profit of Rp89.26 billion in 2011, expects to book profit of Rp73 billion in 2011, surged 143% Rp36.7 billion in previous year.

Operating income jumped 126% to Rp1.01 trillion from Rp447.9 billion in 2010, of which income from financing accounted for Rp786.64 billion. (source)

INDONESIA - BANKING - BNI Syariah's Profit Jumps Ninefold

Theindonesiatoday.com - PT Bank BNI Syariah booked profit after tax of Rp87.44 billion in the first 9 months of 2011, jumped 964% from the same period of last year.

Rizqullah, BNI Syariah's president director, said the bank's financing grew 57.86% while cheap funds increased 23.72%. (source)

INDONESIA - REGULATIONS - Banking Ownership Policy Returned to Technical Team

Theindonesiatoday.com - Board of governors of Bank Indonesia has returned the draft of policy that limits ownership of a bank to below 50% to the technical team for further review.

Bisnis Indonesia quoted Difi A Johansyah, head of PR division of Bank Indonesia, saying the draft has been reviewed by the board of governors. (source)

BANKING - Maybank Granted Extension for BII Shares Sell-Down Indonesia Breaking News www.theindonesiatoday.com

Theindonesiatoday.com - Indonesian Capital Market Supervisory Agency (Bapepam) had on May 31 granted an extension period for Malayan Banking Berhad (Maybank) until December 1, 2011 to sell-down Bank International Indonesia (BNII) shares.

BII told Indonesia Stock Exchange (IDX) today that Maybank may request for further extension of the program two weeks before December 1, 2011 if the sell-down exercise would result in Maubank incurring a potential loss in excess of 10% of  Maybank's original value of BII acquisition.(source)

BANKING - Sharia Banks Q1 Profit Grows 21%

Theindonesiatoday.com - National syariah banks booked net profit of Rp400 billion in the first quarter of 2011, increased 21.95% from Rp328 billion in the same period of last year.

Bank Indonesia reported on its website syariah banks' Finance outstanding totaled Rp74.25 trillion, surged 47.89% from Rp50.20 trillion in the first quarter of 2010. (full story)

BANKING - Syariah Banks Targets 30% Profit Growth

Theindonesiatoday.com - National syariah banks targets to book profit of Rp1.36 trillion this year, grew by 30% from Rp1.05 trillion in 2010, Investor Daily reported this morning.

Mulya Siregar, director of Islamic banking at Bank Indoesia, said the profit growth will be supported by three syariah banks will fully operate this year. That three banks are PT Bank BCA Syariah, PT Bank Syariah BNI and PT Bank Maybank Syariah Indonesia. (source)