INDONESIA - CAPITAL MARKETS - Small issuance, new regulations

www.ibpa.co.id - JAKARTA. Aka Islamic sukuk issuance in 2012 also continued to grow. Citing data from the Capital Market and Financial Institutions Supervisory Agency (Bapepam LK), sukuk issued until late July, a total of 52 products, with a value of Rp 9.39 trillion emissions.

A total of 37 new products were classified as ijara sukuk. While the rest is kind of mudaraba sukuk. Etty Retno Wulandari, Bureau Chief Accounting Standards and Disclosure of Bapepam-LK, said that so far this year reached Rp 1.47 trillion.  (source)

INDONESIA - REGULATIONS - Capital Markets : contract of Istisna and Musharaka

www.bapepam.go.id - PRESS RELEASE - ISSUANCE OF REGULATIONSSUPERVISORY BOARD CAPITAL MARKET AND FINANCIAL INSTITUTIONSOn this day, Wednesday, August 1, 2012, Bapepam-LK issued a regulation is Regulation No. IX.A.14, attachment, and the Chairman LK Number: KEP-430/BL/2012 dated August 1, 2012 of the Agreement, the Agreement Used in the issuance of Islamic securities in the capital market. This regulation is Rule Number IX.A.14 improvements, attachment, and the Chairman LK Number: KEP-131/BL/2006 dated 23 November 2006 concerning the Agreement, the Agreement Used in the issuance of Islamic securities in the capital market.Completion of these regulations, especially related to the addition of contract Musharaka is a new contract and the contract Istishna. It aims to support Islamic Capital Markets industry needs with a wider range of variation of the contract and potential that can be used in the issuance of Islamic securities in the capital market. (source)

INDONESIA - CAPITAL MARKETS - Lower Yields Breathe New Life Into Indonesia’s Islamic Lending

www.thejakartabglobe.com - A year long drought in the sales of corporate sukuk in Indonesia is ending as falling yields spur offers by Bank Muamalat Indonesia and Mayora Indah.

Bank Muamalat, the nation’s second-largest Islamic lender, will offer as much as Rp 800 billion ($87.2 million) of Shariah-compliant notes in June, finance director Hendiarto said on April 4.

Mayora Indah, a biscuit maker, will sell Rp 250 billion of debt in May, a company statement said on Monday. The average yield on Indonesian corporate dollar-denominated debt has fallen 34 basis points to 4.87 percent since Jan. 17, the day before Moody’s Investors Service gave the country an investment-grade rating. (source)

INDONESIA - REGULATIONS - Government Issue 2 Sharia Tax Rules

Jakarta (16 / 2) The Government has issued two regulations governing the imposition of income tax on business activities of Islamic finance and Islamic banking activities.
Rudaedi Smith, Director of Counseling Services and Public Relations Directorate General of Taxation Ministry of Finance, in a press statement on Monday (01.16.12) says the first rule is published 136/PMK.03/2011 Regulation of the Minister of Finance Number of Income Tax for Financing Activities Sharia.  (source)

INDONESIA - BANKING - Sharia Banking Assets Rp130 ​​Trillion

JAKARTA: Islamic banking assets amounting to Rp130 ​​trillion recorded at the end of October 2011 increased by 48.57% compared to same period previous year.
Mulya Siregar, Director Islamic Banking Bank Indonesia (BI) said the increase in assets is in line with the disbursement of funding and third party fund raising (DPK) conducted by Islamic banks, Islamic business units, and bank financing Islamic people  (source)

INDONESIA - ARTICLES - Indonesia: Synergy of Islamic finance and SMEs

ANY SETIANINGRUM discusses why Islamic banking and financing products must be able to take a major role in the development and strengthening of the small and medium-sized enterprises in Indonesia.

Islamic banking in Indonesia provides financing to small and medium-sized enterprises (SMEs) which are a mirror of the economy of the majority of the people. Thus improving the welfare of SMEs is a community effort. In the Islamic economic system, moral values and ethics is an inherent value and it cannot escape the moral responsibility and ethics. (full story here - 19-Oct-2011- Volume8.Issue41)

COUNTRY REVIEW - FRANCE - most prominent mover 2010

Most of you will know that I do follow up close what is happening in the greater European space in the field of Islamic finance.

I just made a short review about the most prominent mover over the year 2010.

France managed to adapt following tax regulations for the introduction of Islamic (finance) contracts : Murabahah, Ijara, Istisna and there were specific changes to allow Sukuk.

REGULATIONS - BNMalaysia consults market on Shariah parameter for Istisna contracts

By MUSHTAK PARKER | ARAB NEWS

Published: Jan 3, 2011 00:42 Updated: Jan 3, 2011 00:42 

Bank Negara Malaysia (BNM), the central bank, last week published the draft of its latest Shariah consultation on Islamic financial products, the "Concept Paper of Shariah Parameter Reference 5: Istisna Contract (SPR5)". According to BNM, SPR5 is aimed at becoming the true source of reference on the nature and features of the Istisna contract for the Islamic financial services industry and to facilitate the consistent implementation of the contract in the Malaysian financial market.

REGULATIONS - Malaysia - Concept Paper of Shariah Parameter Reference 5: Istisna Contract (SPR5)

New guideline on Shariah Parameter Reference 5: Istisna' Contract has been posted on Bank Negara Malaysia's website. 

Feedback is expected by Jan 28, 2011.  The actual concept paper can be accessed under 5.i. Attachment 1.

We give here the outstanding, existing links :

Shariah

1. Shariah Parameter Reference 1 - Murabahah **updated 2009/09/03
   1. Related attachment: Shariah Parameter Reference 1: Murabahah Contract (Frequently Asked Questions) **updated 2009/09/01
2. Shariah Governance Framework for Islamic Financial Institutions ** updated 2010/10/26
3. Concept Paper on Shariah Parameter Reference 4: Musharakah Contract ** NEW 2010/06/15
   1. Attachment 1: Draft of Shariah Parameter Reference 4: Musharakah Contract
   2. Attachment 2: Feedback Form on Draft of Shariah Parameter Reference 4: Musharakah Contract (SPR4)
4. Schedule of Shariah Advisory Council Meetings for 2011 ** NEW 2010/12/28
5. Concept Paper on Shariah Parameter Reference 5: Istisna' Contract ** NEW 2010/12/28
   1. Attachment 1: Draft of Shariah Parameter Reference 5: Istisna' Contract
   2. Attachment 2: Feedback Form on Draft of Shariah Parameter Reference 5: Istisna' Contract (SPR5)