www.thejakartaglobe.com - Bank Mandiri, the country’s largest lender by assets, is considering an
initial public offering next year for its Islamic unit, Bank Syariah
Mandiri, a top executive has said.
Sunarso, a commercial
director of Bank Mandiri, said on Thursday that the preparations for the
offering were under way and the IPO was likely for next year.
“The preparations for the share sale, still have to be completed first but I don’t think it will take too long,” he said.
“We want the IPO to help strengthen the capital [of Bank Syariah Mandiri] .” (source)
Showing posts with label jakarta globe. Show all posts
Showing posts with label jakarta globe. Show all posts
Sunday, August 26, 2012
Monday, August 20, 2012
INDONESIA - CAPITAL MARKETS - Indonesia to Sell More Bonds Next Year to Plug Deficit
www.thejakartaglobe.com - Indonesia, which has been running a budget deficit since the Asian
monetary crisis more than a decade ago, plans to sell 11 percent more
bonds next year to finance its budget shortfall.
The government plans to raise total net bond sales to Rp 177.3 trillion ($19 billion) next year compared with Rp 159.6 trillion this year, with the country aiming to sell more notes even as the budget deficit is projected to narrow next year.
“The government will sell rupiah bonds and dollar-denominated bonds next year,” the government said in a budget statement.
The document also showed that the government would sell regular and retail bonds in the domestic market. (source)
The government plans to raise total net bond sales to Rp 177.3 trillion ($19 billion) next year compared with Rp 159.6 trillion this year, with the country aiming to sell more notes even as the budget deficit is projected to narrow next year.
“The government will sell rupiah bonds and dollar-denominated bonds next year,” the government said in a budget statement.
The document also showed that the government would sell regular and retail bonds in the domestic market. (source)
Tuesday, August 14, 2012
INDONESIA - BANKING - Shariah Included in Indonesian Bank Rule
www.thejakartaglobe.com - The country’s central bank will soon issue a regulation requiring
Shariah banks to toughen down payments on housing and automotive loans, a
deputy governor said on Sunday.
The requirement will be similar to the implementation of the loan-to-value level applied to conventional lenders for housing and vehicle loans issued on March 15 and took effect on June 15.
Under the new regulation, down payments of 25 percent for two-wheeled vehicles are required and 30 percent for four-wheeled vehicles. There were no rules before, but sellers often asked for about 15 percent. Loans typically account for 70 percent of car purchases in Indonesia.
Shariah lenders were excluded from the regulation as in Islamic finance, lending does not require down payments. (source)
The requirement will be similar to the implementation of the loan-to-value level applied to conventional lenders for housing and vehicle loans issued on March 15 and took effect on June 15.
Under the new regulation, down payments of 25 percent for two-wheeled vehicles are required and 30 percent for four-wheeled vehicles. There were no rules before, but sellers often asked for about 15 percent. Loans typically account for 70 percent of car purchases in Indonesia.
Shariah lenders were excluded from the regulation as in Islamic finance, lending does not require down payments. (source)
INDONESIA - BANKING - Foreign Banks Facing Paid-Up Capital Rule From Indonesian Government
www.thejakartaglobe.com -The central bank plans to impose a regulation on
foreign lenders operating branch offices here that will require them to
meet a similar minimum paid-up capital sum that locally incorporated
lenders must pay.
Indonesia allows foreign lenders to operate branch offices here without establishing a locally incorporated company, a policy often criticized by local lenders as paving the way for unfair competition and increased risk for Indonesian deposit holders.
Halim Alamsyah, a deputy governor at Bank Indonesia, said the minimum paid-up capital requirement for local banks — currently set at Rp 3 trillion ($318 million) for the establishment of a new conventional bank — would be applied in some form to foreign branch operators as well. (source)
Indonesia allows foreign lenders to operate branch offices here without establishing a locally incorporated company, a policy often criticized by local lenders as paving the way for unfair competition and increased risk for Indonesian deposit holders.
Halim Alamsyah, a deputy governor at Bank Indonesia, said the minimum paid-up capital requirement for local banks — currently set at Rp 3 trillion ($318 million) for the establishment of a new conventional bank — would be applied in some form to foreign branch operators as well. (source)
Monday, August 13, 2012
INDONESIA - CAPITAL MARKETS - Indonesia to Sell $1.75 Billion in Yen and US Dollar Sukuk
www.thejakartaglobe.com - Indonesia plans to raise the equivalent of almost $2 billion in combined
yen- and dollar-denominated Islamic bonds later this year as part of
its efforts to plug a widening budget deficit.
Southeast Asia’s largest economy plans sell $750 million of so-called samurai bonds and $1 billion of US-currency bonds, both of them sukuk, in October.
“The figures and timing are still moving,” Robert Pakpahan, acting chief of the debt management office at the Finance Ministry, told the Jakarta Globe via text message on Friday. (source)
Southeast Asia’s largest economy plans sell $750 million of so-called samurai bonds and $1 billion of US-currency bonds, both of them sukuk, in October.
“The figures and timing are still moving,” Robert Pakpahan, acting chief of the debt management office at the Finance Ministry, told the Jakarta Globe via text message on Friday. (source)
Tuesday, August 07, 2012
INDONESIA - BANKING - Maybank Optimistic It Will Maintain Control of BII
www.thejakartaglobe.com - Kuala Lumpur. Malayan Banking is convinced that it will
be able to keep its controlling stake in Bank Internasional Indonesia
despite the recent change in bank ownership rules in Indonesia.
Maybank, which bought BII in 2008, owns 97.3 percent of Indonesia’s eighth-largest lender.
Last Tuesday, BII reported that it recorded a 61 percent increase in net income during the first half.
Three weeks ago, Indonesia’s central bank issued new rules limiting ownership in domestic banks at 40 percent. However, it said it would allow waivers if the owners were listed banks that maintained high levels of corporate governance and were in sound financial health. (source)
Maybank, which bought BII in 2008, owns 97.3 percent of Indonesia’s eighth-largest lender.
Last Tuesday, BII reported that it recorded a 61 percent increase in net income during the first half.
Three weeks ago, Indonesia’s central bank issued new rules limiting ownership in domestic banks at 40 percent. However, it said it would allow waivers if the owners were listed banks that maintained high levels of corporate governance and were in sound financial health. (source)
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)
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)
Wednesday, August 01, 2012
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)
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)
Wednesday, July 25, 2012
INDONESIA - BANKING - BRI Targets Brokerage in Expansion Push
www.thejakartaglobe.com - Bank Rakyat Indonesia, the second-largest lender by assets, is close to acquiring a local brokerage company.
BRI, which focuses its lending on small- and medium-size companies, has been scouring the country’s financial markets for months to find the right brokerage. It has narrowed the candidates down to two.
“We have to complete the acquisition this year,” BRI’s president director, Sofyan Basir, said last week, without naming the potential targets.
The move is geared toward keeping BRI on par with two of its biggest competitors, Bank Mandiri and Bank Negara Indonesia. Mandiri, the country’s largest lender by assets, already has a brokerage unit in Mandiri Sekuritas. So does Bank Negara, with BNI Securities. (full story)
BRI, which focuses its lending on small- and medium-size companies, has been scouring the country’s financial markets for months to find the right brokerage. It has narrowed the candidates down to two.
“We have to complete the acquisition this year,” BRI’s president director, Sofyan Basir, said last week, without naming the potential targets.
The move is geared toward keeping BRI on par with two of its biggest competitors, Bank Mandiri and Bank Negara Indonesia. Mandiri, the country’s largest lender by assets, already has a brokerage unit in Mandiri Sekuritas. So does Bank Negara, with BNI Securities. (full story)
INDONESIA - FINANCE - Indonesian Govt to Put Idle Hajj Funds in Development Bonds
www.thejakartaglobe.com - The government plans to reallocate dormant hajj funds from the Finance
Ministry into project-based sukuk in order to help raise money for
urgently needed infrastructure development.
Project-based sukuk are Shariah-compliant government bonds backed by infrastructure projects.
“Now [the money] is merely entrusted to the Finance Ministry. But it would be better if it generated revenue from projects,” said Anggito Abimanyu, director general of hajj pilgrimage management at the Religious Affairs Ministry, adding that his institution managed Rp 44 trillion ($4.7 billion) in pilgrimage funds. (source)
Project-based sukuk are Shariah-compliant government bonds backed by infrastructure projects.
“Now [the money] is merely entrusted to the Finance Ministry. But it would be better if it generated revenue from projects,” said Anggito Abimanyu, director general of hajj pilgrimage management at the Religious Affairs Ministry, adding that his institution managed Rp 44 trillion ($4.7 billion) in pilgrimage funds. (source)
INDONESIA - REGULATIONS - Bank Indonesia’s Ownership Rule May Speed Up Mergers
www.thejakartaglobe.com - Fitch Ratings says the central bank’s new rule on bank ownership will
likely expedite banking consolidations but will pose challenges for
smaller lenders.
A day after Bank Indonesia announced its new rule to cap the ownership of banks to 40 percent from 99 percent, Fitch said in a report on Thursday that “the risk of failing to maintain the Bank Indonesia criteria may be more pronounced at small- to medium-sized banks facing undue business pressure.”
“This is notably because of a concentrated shareholding structure, especially family-owned, which has been cited as one factor behind bank failures in Indonesia in the past,” the rating agency wrote.
The rule is expected to set a clear platform for future bank acquisitions, as Indonesia has been coaxing its 120 commercials lenders to consolidate through mergers and acquisitions, hoping to help them better compete with regional peers. (source)
A day after Bank Indonesia announced its new rule to cap the ownership of banks to 40 percent from 99 percent, Fitch said in a report on Thursday that “the risk of failing to maintain the Bank Indonesia criteria may be more pronounced at small- to medium-sized banks facing undue business pressure.”
“This is notably because of a concentrated shareholding structure, especially family-owned, which has been cited as one factor behind bank failures in Indonesia in the past,” the rating agency wrote.
The rule is expected to set a clear platform for future bank acquisitions, as Indonesia has been coaxing its 120 commercials lenders to consolidate through mergers and acquisitions, hoping to help them better compete with regional peers. (source)
Friday, July 20, 2012
INDONESIA - REGULATONS - Indonesia’s New Bank Ownership Rules Leave Door Open for DBS Deal
www.thejakartaglobe.com - Jakarta/Singapore. Indonesia’s central
bank will cap single ownership of domestic banks at 40 percent under
new rules but allow exemptions that could pave the way for DBS Group’s
$7.2 billion bid for Bank Danamon to proceed.
The long-awaited regulation announced on Wednesday is aimed at preventing lenders in the fast-growing G20 country falling captive to single interests and ensuring a diverse shareholder base to hold management accountable.
But the rules, which come on the back of ownership restrictions on mining companies, have fueled concerns Indonesia is becoming tougher on foreign investment.(source)
The long-awaited regulation announced on Wednesday is aimed at preventing lenders in the fast-growing G20 country falling captive to single interests and ensuring a diverse shareholder base to hold management accountable.
But the rules, which come on the back of ownership restrictions on mining companies, have fueled concerns Indonesia is becoming tougher on foreign investment.(source)
Wednesday, July 18, 2012
INDONESIA - RATNGS - Moody’s Keeps Indonesian Outlook Stable
www.thejakartaglobe.com - Moody’s Investors Service has maintained a stable
outlook for Indonesia’s economy, citing the country’s reliable economic
growth and prudent debt management. The announcement appeared to be
welcomed by the market, which on Monday pushed up bond yields and set
the rupiah into stronger territory in Jakarta.
Moody’s analyst Christian de Guzman said relatively strong economic growth coupled with prudent fiscal management prompted the rating assessor to maintain its outlook for Indonesia. A stable outlook for a country’s sovereign debt means the rating assessor is unlikely to change its rating within the next 12 months.
“Indonesia’s Baa3 sovereign rating is anchored by strong growth, low government debt, and the recent track record of prudent fiscal management,” De Guzman said in a report released on Monday. (source)
Moody’s analyst Christian de Guzman said relatively strong economic growth coupled with prudent fiscal management prompted the rating assessor to maintain its outlook for Indonesia. A stable outlook for a country’s sovereign debt means the rating assessor is unlikely to change its rating within the next 12 months.
“Indonesia’s Baa3 sovereign rating is anchored by strong growth, low government debt, and the recent track record of prudent fiscal management,” De Guzman said in a report released on Monday. (source)
Tuesday, June 26, 2012
INDONESIA - REGULATIONS - Bank Indonesia Spells Out Three Requirements for Bank Ownership
www.thejakartaglobe.com -Bank Indonesia has spelled out three main requirements
for investors to be able to own more than 40 percent and up to 90
percent of stakes in banks.
Bank Indonesia deputy governor Halim Alamsyah said in the Bank Indonesia Regulation on Banking Ownership Structures, BI differentiated three categories — ownership of up to 40 percent, up to 30 percent and up to 20 percent.
However, Halim said exceptions were permitted, and investors could have more than 40 percent of the shares in a bank but the central bank would first study how the bank managed itself, whether it was capable and whether there were benefits to the economy. (source)
Bank Indonesia deputy governor Halim Alamsyah said in the Bank Indonesia Regulation on Banking Ownership Structures, BI differentiated three categories — ownership of up to 40 percent, up to 30 percent and up to 20 percent.
However, Halim said exceptions were permitted, and investors could have more than 40 percent of the shares in a bank but the central bank would first study how the bank managed itself, whether it was capable and whether there were benefits to the economy. (source)
Friday, June 15, 2012
INDONESIA - CAPITAL MARKETS - Indonesia Mulls $1bIslamic Bond Sale in Q3
www.thejakartaglobe.com - The government may offer as much as $1 billion worth of
dollar-denominated Islamic bonds in the third quarter this year in a bid
to finance its budget deficit, a senior official said.
Rahmat Waluyanto, director of the Finance Ministry’s general debt management office, said the Islamic bond sale would be conducted after the Idul Fitri holiday, which marks the end of the Muslim fasting month.
Indonesia, a country with the world’s largest Muslim population, plans to sell between $650 million and $1 billion worth of bonds this year, Rahmat said. (source)
Rahmat Waluyanto, director of the Finance Ministry’s general debt management office, said the Islamic bond sale would be conducted after the Idul Fitri holiday, which marks the end of the Muslim fasting month.
Indonesia, a country with the world’s largest Muslim population, plans to sell between $650 million and $1 billion worth of bonds this year, Rahmat said. (source)
Saturday, June 09, 2012
INDONESIA - CAPITAL MARKETS - Demand for Local Sukuk ‘Excessive’ With More Likely Ahead, Official Says
www.thejakartaglobe.com -Surabaya. The government has issued Rp
120 trillion ($12.8 billion) in Islamic bonds during the past four
years, which the Finance Ministry attributes to an “excessive” demand
for them among Muslim investors.
The ministry’s director for Shariah financing, Dahlan Siamat, said the government issued its first Islamic bond, known as sukuk, in 2008, and as of Thursday it had issued a total of Rp 120 trillion.
“The achievement has been supported by excessive demand for sukuk in the domestic market,” Dahlan said in Surabaya on Thursday. (source)
The ministry’s director for Shariah financing, Dahlan Siamat, said the government issued its first Islamic bond, known as sukuk, in 2008, and as of Thursday it had issued a total of Rp 120 trillion.
“The achievement has been supported by excessive demand for sukuk in the domestic market,” Dahlan said in Surabaya on Thursday. (source)
INDONESIA - FINANCE - 96 % of 1997 bail out funds disappeared - Bank Indonesia Bailout Scandal Fugitive Arrested in US
www.thejakartaglobe.com - A fugitive in the high-profile Bank Indonesia bailout case has been
arrested in San Fransisco, California, after a decade on the run, the
Indonesian police said in Jakarta on Friday.
It is not clear yet when the arrest was made, but Sherny Kojongian, 49, a former director with Bank Harapan Sentosa (BHS), is expected to arrive in Jakarta on June 13.
“She will be deported from San Fransisco on June 11. [When she arrives] she will be immediately escorted to the Attorney General’s Office,” Indonesia’s National Police spokesman Sr. Comr. Boy Rafli Amar said in Jakarta on Friday. (source)
It is not clear yet when the arrest was made, but Sherny Kojongian, 49, a former director with Bank Harapan Sentosa (BHS), is expected to arrive in Jakarta on June 13.
“She will be deported from San Fransisco on June 11. [When she arrives] she will be immediately escorted to the Attorney General’s Office,” Indonesia’s National Police spokesman Sr. Comr. Boy Rafli Amar said in Jakarta on Friday. (source)
Friday, June 08, 2012
INDONESIA - CAPITAL MARKETS - Sukuk Sale in Works For End of the Year
www.thejakartaglobe.com - Indonesia will sell dollar-denominated sukuk toward the end of the year,
according to Dahlan Siamat, a director of Islamic financing at the debt
management office, provided it gets approval from the finance minister.
Dahlan declined to disclose the size of the offer, saying on Monday that “we have figures for the amount in the report we sent to the finance minister, but he will be the one to decide.”
He did not return calls from the Jakarta Globe seeking comment on the Islamic debt sale. Finance Minister Agus Martowardojo was not available for comment. (source)
Dahlan declined to disclose the size of the offer, saying on Monday that “we have figures for the amount in the report we sent to the finance minister, but he will be the one to decide.”
He did not return calls from the Jakarta Globe seeking comment on the Islamic debt sale. Finance Minister Agus Martowardojo was not available for comment. (source)
INDONESIA - CAPITAL MARKETS - Indonesia Reports ‘Excessive’ Demand for Sukuk Bonds
www.thejakartaglobe.com -Surabaya. The Indonesian government
has issued Rp 120 trillion ($12.84 billion) in Islamic bonds, better
known as sukuk, over the past four years, which the Finance Ministry
attributes to an "excessive" demand among Muslim investors.
The ministry’s director for Shariah financing, Dahlan Siamat, said the government issued its first sukuk in 2008, and as of Thursday had issued a total of Rp 120 trillion in sukuk bonds.
“The achievement has been supported by excessive demands for sukuk in the domestic market,” Dahlan said in Surabaya on Thursday. “And the potential for state sukuk in the country is developing rapidly, given that 80 percent of Indonesians are Muslims, and there remains a large potential for them to become investors.” (source)
The ministry’s director for Shariah financing, Dahlan Siamat, said the government issued its first sukuk in 2008, and as of Thursday had issued a total of Rp 120 trillion in sukuk bonds.
“The achievement has been supported by excessive demands for sukuk in the domestic market,” Dahlan said in Surabaya on Thursday. “And the potential for state sukuk in the country is developing rapidly, given that 80 percent of Indonesians are Muslims, and there remains a large potential for them to become investors.” (source)
Saturday, June 02, 2012
INDONESIA - CAPITAL MARKETS - Bank Muamalat Readies for Rp 1.5t Islamic Bond Sale
www.thejakartaglobe.com -Bank Muamalat, the country’s top Islamic bank, plans to
sell Islamic bonds worth Rp 1.5 trillion ($159 million) over the next
two years to boost lending.
The Jakarta-based lender aims to sell Rp 500 billion in July this year, it said in a brief prospectus published in Bisnis Indonesia newspaper on Wednesday.
It will offer the notes to investors on June 25-26, with a planned listing on the Indonesia Stock Exchange on July 2. It will sell the final Rp 1 trillion next year. (source)
The Jakarta-based lender aims to sell Rp 500 billion in July this year, it said in a brief prospectus published in Bisnis Indonesia newspaper on Wednesday.
It will offer the notes to investors on June 25-26, with a planned listing on the Indonesia Stock Exchange on July 2. It will sell the final Rp 1 trillion next year. (source)
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