INDONESIA - BANKING - BI to Apply Minimum Down Payment Regulation to Islamic Banks

www.bisnis.com - JAKARTA: After a minimum down payment credit policy applied to conventional banks and multifinance since mid-June, Bank Indonesia will ensure to apply similar regulation to Islamic banking.

Bank Indonesia (BI) Islamic Banking Department Executive Director Edy Setiadi said the preparation of minimum down payment regulation for Islamic Bank needs more time because this type of bank has limited data resources compared to conventional banks.

"The principle is BI also has to make similar regulation for Islamic banks," he said yesterday (8/13).  (source)

INDONESIA - REGULATONS - BANK INDONESIA to issue new loan to value ratio for Islamic Banks

www.bisnis.com - JAKARTA: Bank Indonesia will release a regulation to limit ratio of credit value that bank can be provided to maximum collateral. The regulation will be imposed to Islamic Banking industry as part of microprudential policy.

Loan to value ratio might be applicable this year, said Executive Director of Bank Indonesia's Islamic Banking Department Edy Setiadi.

"Since the first rule was out for a conventional bank, BI principle should also be set up for Islamic banks however time and date are still unclear," he said on Monday (8/13/2012).  (source)

INDONESIA - CAPITAL MARKETS - Dana Haji Sign Sukuk, Islamic Banking sluggish

www.bisnis.com - JAKARTA - Bank Indonesia (BI) recorded growth of Islamic banking industry in the first half of 2012 tend to be slower than growth at the end of December 2012. The transfer of Sukuk to fund the pilgrimage to one of the trigger."The performance of Islamic banking is based on the record is still growing very little. I see the industry to agree on this, "said Executive Director of the Department of Banking Islamic Bank, Edy Setiadi, the talkshow reveals the human resources crisis in Islamic Banking in Jakarta, today.He said the slowdown in the growth of Islamic banking, one of which can be seen from the growth of assets amounted to only 7.04 percent in the period from January to July 2012 (year to date / ytd). That means during the first half of 2012, growth has not reached half of the total asset growth last year, amounting to 48.6 percent (ytd) during setahunan.  (source)

INDONESIA - BANKING - Islamic Finance Industry Need Government Support

www.investor.co.id  - JAKARTA - Indonesia's Islamic financial industry can go fast if it gets government support. With its potential, the Islamic financial industry in the country can shift the Islamic industry in Iran, Malaysia and other countries in the Middle East. Until the first half of 2012, total assets of Islamic financial industry nationwide reach Rp 285 trillion.
This is expressed by the Executive Director of Islamic Banking Bank Indonesia (BI) Eddy Setiadi and Chairman of the Board of the National Islamic Council of Ulama Indonesia (DSN-MUI) KH Ma'ruf Amin when delivering a speech at the conferment ceremony Investor magazine Best Syariah 2012 in Jakarta, Wednesday (8 / 8).  (source)

INDONESIA - BANKING - HAJJ FUND drawn Affairs, Islamic Banking Performance immediately dropped

www.bisnis.com - JAKARTA: Withdrawal of funds by the Ministry of Religious pilgrimage to be one major factor weakening the performance of Islamic banking industry during April.
A source of Business in an Islamic bank in the know said the weaker performance of Islamic banks because the funds withdrawn Hajj then transferred to the instrument sukuk
"It came out trillions and must be replaced to use low-cost funds. Well it difficult to pursue because of the retail savings, "he told Business this morning Wednesday (20/6).  (full story)

INDONESIA - BANKING - Product development biggest challenge

www.bisnis.com - MAKASSAR-limited products of Islamic banks today become one of the challenges in efforts to develop Islamic banking industry in capturing the opportunities that exist.
 Chairman of the Association of Islamic Economist (IAEI) Bambang PS Brodjonegoro said the lack of Islamic banking products is one of three factors challenge the growth of Islamic finance is not significant.
 According to him, two other external factor is the absence of Islamic or Shariah compliance standards compliance standard that allows the distinction of compliance, tailored to the relevant bank or central banks concerned. Another factor is a matter of international Islamic institutional infrastructure that is still not united in substance.
 "Islamic products is relatively limited, so that consumers are still thinkers-thinkers to switch to the Shariah, it is also faced by the countries of the Islamic financial development," he said as a keynote speaker in the Islamic Banking Research Forum-5 that was held at the Muslim University of Indonesia ( UMI) Makassar today, Tuesday (26/06/2012).  (source)

INDONESIA - BANKING - BI tightens sanctions on Islamic banks for violations fit and proper test

www.bisnis.com - JAKARTA: Bank Indonesia to tighten sanctions on the Islamic banks and Islamic business units related offenses committed in the implementation of a fit and proper test for prospective directors, commissioners, and the controlling shareholder.
It is stipulated in Bank Indonesia 14/6/PBI/2012 number of fit and proper test and Islamic Banking Sharia is valid from June 18 last.
Eddy Setiadi, Executive Director Islamic Banking Department of Bank, said the tightening of rules regarding the fit and proper test in Islamic banks have to follow the provisions applicable in the conventional first.
"Management of the bank knows exactly behind the scenes is a person who is the owner, directors and commissioners. If the person does not properly manage the bank, we must act decisively, "he told Business, Friday (22/06/2012). (source)

INDONESIA - FINANCE - HAJJ FUND drawn Affairs, Islamic Banking Performance immediately dropped

www.bisnis.com - JAKARTA: Withdrawal of funds by the Ministry of Religious pilgrimage to be one major factor weakening the performance of Islamic banking industry during April.
A source of Business in an Islamic bank in the know said the weaker performance of Islamic banks because the funds withdrawn Hajj then transferred to the instrument sukuk
"It came out trillions and must be replaced to use low-cost funds. Well it difficult to pursue because of the retail savings, "he told Business this morning Wednesday (20/6).  (source)

INDONESIA - BANKING - Sharia banks’ assets up 50 percent in March

www.thejakarapost.com - JAKARTA: The total assets of Indonesia’s sharia banks increased by 50 percent to Rp 158.8 trillion (US$16.99 billion) as of March from Rp 101.2 trillion in the same period last year, according to a senior Bank Indonesia official.

Edy Setiadi, the director for sharia banking at the central bank, said that the annual growth of the Islamic banks in Indonesia averaged 40.2 percent over the past five years.

“Sharia banking only accounts for a 4.23 percent market share. We aimed to achieve 15 to 20 percent of market share within 10 years,” he said during the opening ceremony of International Franchise License and Business Concept Expo & Conference (IFRA) in Jakarta. (source)

INDONESIA - BANKING - Islamic banking transcends 4.5 % market share

www.bisnis.com - JAKARTA: Edy Setiadi, Head of Banking Department of Bank Indonesia has two entries that can penetrate the syariah banking industry market share 4.5% at the end of this year.
"This could occur when each bank syariah and syariah business units can increase the flat compared with the parent," he said to the Business, a brief message late Wednesday, May 9, 2012.
In addition, more recently, the main support absolute effort required to market share growth expectations can be realized. "That should be reflected in the RBB [bank business plan], respectively," he added.  (source)

INDONESIA - EVENTS - Human Resources and Product Development still problem

www.bisnis.com - BANDUNG: The problem that often limit the movement of Islamic banking is the limited human resources and product variations.
It was submitted by the Executive Director of Bank Indonesia Sharia Banking Eddy Setiadi during a press conference in Bank Indonesia The 2nd International Seminar on Islamic Finance, today is Tuesday, May 8, 2012.
Based on his observations, sharia-based banking business operations have not been fully managed by human resources (HR) with the educational background of Islamic finance. (source)

INDONESIA - BANKING - Islamic banking : BI has not tightened the rules of the down payment home loans

www.bisnis.com - JAKARTA: Bank Indonesia will not tighten rules to ensure minimum down payment of housing finance in Islamic banking industry, because it has not seen indications of speculative investment.
 Eddy Setiadi, Director of Islamic Banking Bank Indonesia (BI), said the central bank still monitor the performance of housing finance in the industry before issuing a rule a minimum down payment of 30%, as had been first introduced in the conventional.
 "When viewed in the portion of Islamic bank financing is still relatively simple for the home. Value over the financing of small pieces. So we will not set the FTV [financing to value] that way, "he said today Friday, May 4, 2012.  (source)

INDONESIA - BANKING - Eddy Setiadi Director Directorate of Islamic Banking New BI

www.pkesinteraktif - Jakarta (22/2) - Eddy Setiadi became Director of Directorate of Islamic Banking Bank Indonesia (BI) were replacing Mulya Siregar, who moved the post as Director of the Directorate of Banking Research and Regulation. Edy himself previously served as Director of the Directorate of Rural Credit and SMEs.

This position shift is the result of the rotation number of high officials in the BI and is routinely done something related to regeneration.

"This regeneration. Some employees want to retire and other employees are eligible to be president," said Head of Public Relations Bureau BI Difi A Johansyah, Tuesday (21/2). (source)

INDONESIA - BANKING - Bank Indonesia Rotates, Promotes Directors

www.thejakartaglobe.com - Indonesia’s central bank on Monday announced major director-level personnel change, with some officials promoted as others entered their retirement stage.

It was the first set of major management changes at Bank Indonesia (BI) since December 2011, when Ronald Waas and Muliaman Hadad were named deputy governors. Bank Indonesia spokesman Difi Johansyah said late on Monday that it was just a routine restructuring.

“It’s for the sake of regeneration,” Difi told reporters late on Monday. Difi said the promotions and rotations would be effective on March 1. (source)

INDONESIA - MICRO FINANCE - Micro Financing is Increasingly Popular in Indonesia

Jakarta, (15/11). Micro financing is now increasingly popular in Indonesian banking system. Some of the Indonesian banks are now establishing micro financing business unit. Micro financing is supported by the Indonesian government as well, by implementing the program Kredit Usaha Rakyat (KUR)/microfinancing for people in need. (source)