INDONESIA - REGULATIONS - Bank Indonesia Circular Letter dated February 29, 2012 No.14/7/DPbS about Gold Backed Qardh Products for Islamic Banking and Sharia.

www.bi.go.id - SE publishing is intended to provide a reference for Islamic banking in the run products Qardh Backed Gold, which is the implementation of Bank Indonesia Regulation No.10/17/PBI/2008 about Islamic Banking Products and Sharia.
This provision applies to Commercial Bank of Sharia, Sharia (UUS), and Sharia Rural Bank (SRB).
Gold Backed Qardh product characteristics (features) as follows: (source)

INDONESIA - REGULATIONS - Bank Indonesia Circular Letter dated February 29, 2012 No.14/7/DPbS about Gold Backed Qardh Products for Islamic Banking and Sharia

www.bi.go.id - Bank Indonesia Circular Letter dated February 29, 2012 No.14/7/DPbS about Gold Backed Qardh Products for Islamic Banking and Sharia

SE publishing is intended to provide a reference for Islamic banking in the run products Qardh Backed Gold, which is the implementation of Bank Indonesia Regulation Number 10/17/PBI/2008 about Islamic Banking Products and Sharia.
This provision applies to Commercial Bank of Sharia, Sharia and BPRS Gold Backed Qardh product characteristics (features) as follows: (source)

INDONESIA - REGULATIONS - BI Regulates Ownership of Precious Metal Business

www.indonesiafinancetoday.com - JAKARTA (IFT) –After regulating gold pawn practice using qardh scheme, Bank Indonesia will also issue a policy on precious metal practice using murabahah scheme to improve banks’ intermediary function. (source)

INDONESIA - BANKING - Islamic Banking Deposits Reach Rp 103.3 Trillion

JAKARTA - Bank Indonesia (BI) recorded Third Party Funds (TPF) of Islamic banking to October 2011 reached Rp 103.3 trillion, up 50 percent from the same period in 2010 amounted to Rp 69 trillion.
Director of the Directorate of Bank Indonesia Sharia Banking Mulya Siregar express it here on Friday.
Mulya detailing the Commercial Bank Deposits for Sharia and Sharia reach Rp 101.6 trillion, coupled with SRB deposits that reached Rp 1.7 trillion. Islamic banking assets up to 16 November 2011 reached Rp 130 trillion, with total customer until today reaches about 8 million customers. (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 - BANKING - Observing Rahn Gold In Islamic Banking

Jakarta (27/10) - Hands-rahn or pawning gold that is now commonplace Islamic banks are relying on the fatwa of National Sharia Council (DSN) number 79 on Qardh. Where Islamic bank may use customer funds to finance the contract qardh (financing) which is a means or completeness of the other transactions using Mu'awadah contract (exchange and can be commercial). Qardh not get rewarded but Islamic banks earn income from the administration and ijara.
But there are things that are sometimes forgotten, namely Islamic banking fatwa number 19 on Qard where there are three sources of funds described Qardh for Rahn is the first of the capital of Islamic banks, two Islamic banks profits are set aside and the three other institutions or individuals who entrust infaq its distribution to the bank Sharia. Qardh of going back to the first source of Islamic banks, while Qardh of the second and third sources are Qardh hassan. (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)

INDONESIA - BANKING - BRI Syariah Financing precious metals exceeds USD 15 Billion

REPUBLIKA.CO.ID, JAKARTA - PT Bank Rakyat Indonesia (BRI) Sharia recorded significant achievements in gold-based financing, ownership of precious metals (KLM). The product which was launched in June 2011 and is now up to Rp 15 billion.
According to Chief of Retail Banking Sharia BRI Khairullah KLM emergence as a new innovation in Islamic banking business led to KLM's got a good appreciation in the market. ''This product is desirable because it offers the gold purchases in installments,''he told reporters when met in Sharia BRI Gathering on Thursday (28 / 7). (source)

INDONESIA - EVENTS - High level conference - RAJA NAZRIN: Indonesian and Malaysian financial centers can look into products for lower income groups

JAKARTA, July 18 (Bernama) – The Indonesian and Malaysian Islamic financial centres can look into developing productive Syariah-based instruments such as micro-financing tools, incorporating Qardhul Hassan (or benevolent loans), Zakat and Sadaqah to channel financing to and facilitating the economic participation of the lower income groups, said the Raja Muda of Perak, Raja Dr Nazrin Shah. (source)

BANKING - All that glisters for Bank Rayat Syariah

Local press is reporting that Indonesia’s Bank Rayat Indonesia Syariah – the Shari’ah compliant subsidiary of stateowned Bank Rayat Indonesia – has launched a new product that will allow customers to buy gold
as an investment in installments.

BRI Syariah hopes that by offering customers the opportunity to buy the physical commodity in small quantities as an investment that it would be able to attract new people from a broader demographic
into the Islamic banking fold. (source)

SUKUK - Sukuk Developments: Hybrid Structures and Malaysian Expansion

Qatar’s $3.5 billion conventional bond issue may be the season’s most noteworthy Islamic finance deal. Malaysia, issuer of 75% of the world’s sukuk, has flexed even more muscle as it branches into the nascent Islamic finance market of neighboring Singapore. Anecdotally, these offerings are noteworthy; collectively, they may help ameliorate some high-profile setbacks for the industry.  The world sukuk market seems to have regained its footing. Thomson Reuters data show that global issuance from 2007-2009 dipped from $46.2 billion in 2007, to $39.6 billion in 2008, and back up to $46.3 billion in 2009. For the 12 months ending May 2010, sukuk issuance stands at $45.1 billion, with the summer’s major sukuk not yet included.