INDONESIA - BANKING - BI: 5 Years, Can Islamic Market Share 10 Percent

www.kompas.com - JAKARTA, KOMPAS.com - Bank Indonesia (BI) is optimistic the market share of Islamic banking on the banking industry in terms of assets could rise to 10 percent in five years. Currently, a new Islamic banking holds 4 percent of market share.

This can be achieved due to BI see the growing trend of Islamic banking in the last five years. BI deputy governor Halim Alamsyah said Islamic banking assets grew an average of 40.5 percent over the last five years. These include the growth of Islamic banks, Islamic business units, or sharia rural banks. This figure is two times faster than conventional banking growth.

"If growth can continue as now, is not impossible that in the next five years the market share of sharia could approach 10 percent. If plus five more years to 15 percent, "Halim said when opening the National Congress of Indonesian Association of Islamic Banking (Asbisindo), Wednesday (03/21/2012).  (source)

INDONESIA - BANKING - Islamic Banking Must Continue to Innovate

www.kompas.com - JAKARTA, KOMPAS.com - Islamic banks should be able to offer competitive products to the people of Indonesia. It a competitive advantage in terms of costs and services.

Deputy Governor of Bank Indonesia Halim Alamsyah was speaking during a press conference after opening the National Congress of Indonesian Association of Islamic Banking in Jakarta, Wednesday (03/21/2012). (source)

INDONESIA - REGULATIONS - Not subject to Rule Islamic Bank Advances

www.kompas.com - JAKARTA, KOMPAS.com - Rules loan to value ratio for mortgages (mortgage) loans and advances to a motor vehicle, apply for a new conventional-based bank. Islamic banks have not been affected by the rule.

Head of the Directorate of Banking Research and Regulation of Bank Indonesia, Filianingsih, ensuring that, when asked by reporters. "We have not been subject to the rules of Islamic banks," said Fili, in Jakarta, Tuesday (03/20/2012).

BI rules require that prospective home buyers with a building area exceeding 70 square meters using a mortgage from the bank, to pay a minimum down payment of 30 percent of the sales price. (source)

INDONESIA - BANKING - Qatar National Bank, Major Shareholder of Bank Kesawan

JAKARTA, www.KOMPAS.com - Along with Qatar National Bank (QNB) became the main shareholder of Bank Kesawan, then at the end of 2011 the bank changed its name to Bank QNB Kesawan.

In a general meeting of shareholders extraordinary, Friday (27/01/2012), was officially raised QNB Kesawan ZA Ali Ahmed Al-Kuwari as Commissioner. Ali's position will become effective after approval from Bank Indonesia.  (source)

INDONESIA - HALAL - Jakarta to be World's Halal Food Center

JAKARTA, KOMPAS.com - Jakarta will be a center of the world’s halal food as headquarter of the World Halal Food Council (WHFC) that will be officially opened in January 16 2012.

"The office, located in the MUI (Indonesian Ulema Council) Building, Central Jakarta, will be inaugurated concurrently with the opening ceremony of the WHFC annual meeting," the Director of MUI Food and Drug Analysis Agency (LPPOM) Lukmanul Hakim said in a release received here, Thursday. (source)

INDONESIA - CAPITAL MARKETS - Sukuk instruments get more attention

JAKARTA, KOMPAS.com - Instruments sukuk, or Islamic bonds, increasingly in demand globally. This is shown with a total value of global sukuk issuance rose 5.8 percent in the second quarter of 2011 from the same period in 2010.
It is delivered by the Director of the Indonesian Bond Pricing Agency (IBPA) Hasan Fawzi in Jakarta, Tuesday (11/15/2011). "In annual terms, total sukuk issued in the first half of 2011 worth 32.07 billion U.S. dollars," said Hasan. (source)

INDONESIA - CAPITAL MARKETS - Indonesia Finance Minister to Start Global Sukuk Roadshow

JAKARTA, KOMPAS.com - Indonesia plans to begin a roadshow next week for a global sukuk issue of around $1 billion, the country's finance minister said.

Agus Martowardojo told Dow Jones Newswires late Wednesday that the government has met with arrangers of the issue and will start visiting “global financial hubs“ next week, raising the prospect of imminent issuance. The government has previously said that a global sukuk issuance would be likely in the third quarter.(source)

INDONESIA - KUR - BNI Syariah becomes supplier KUR

CIREBON, KOMPAS.com - The government will add to the ranks of banks appointed as a distributor People's Business Credit (KUR) of 32 banks to 33 banks.
This is possible because the middle of the Coordinating Ministry for Economic Bank ready to finalize the entry process, as one of the new bank dealers of KUR.  (source)

INDONESIA - BANKING - Indonesia Bank Chief Denies Suspending Bank Purchases

JAKARTA, KOMPAS.com - Bank Indonesia Governor Darmin Nasution on Friday denied reports that permits for investors to buy local banks had been suspended pending new rules on ownership caps.

“Acquisition processes can still continue,” Nasution was quoted as saying by Dow Jones Newswires.

Bank Indonesia spokesman Difi Johansyah had earlier said the issuance of permits to purchase banks had been suspended until a decision was made about new investment rules. “Hopefully the regulation can be issued later this year,” he said. (source)

INDONESIA - CAPITAL MARKETS - Indonesia Plans to Issue Maiden Islamic Treasury Bills

JAKARTA, KOMPAS.com - Indonesia plans to issue its maiden Islamic treasury bills Aug. 2, a senior official at the finance ministry said Monday, as part of its efforts to diversify its Islamic bond instruments.

Dahlan Siamat, a director in charge of Islamic finance at the finance ministry, said in a seminar that Indonesia would issue six-month bills next month. He didn't say how much the country plans to raise.

Indonesia, which has the biggest Muslim population in the world, has lagged behind neighbors such as Malaysia and Singapore in developing its Islamic finance industry. (source)

INDONESIA - BANKING - Bank Muamalat to expand more retail financing

PT Bank Muamalat Indonesia Tbk expanded its retail financing.  As of June 2011, retail finance has reached by 56,92 % while corporate by 43.08 % from total financing Rp 19.8 trillion.  This composition is higher than December 2010 that was 52 % for retail.  The company is planned to increase more for retail financing up to 60 %. (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)