INDONESIA - BANKING - Bank Syariah Mandiri Eyes Mining Sector

TEMPO Interactive, Jakarta:Bank Syariah Mandiri (BSM) plans to increase funding in the mining sector this year. “BSM funding for medium-scale businesses in the mining sector is still minimal,” BSM director Sugiharto said in Jakarta yesterday.

He said the mining sector was attractive due to its large potential in Indonesia.  (source)

INDONESIA - HALAL - MUI Criticizes NU’s Plan to Draft Halal Certification

TEMPO Interactive, Jakarta:The Indonesian Ulemas Council (MUI) has criticized Nahdlatul Ulama’s (NU) plan to draft halal and honesty certifications for its members.

Lukmanul Hakim, MUI’s food, drug and cosmetics study agency’s (LPPOM MUI) director, said it was unnecessary for NU to issue its own certifications because the LPPOM’s halal certificate was transparent and practical. However, he said, the certificate arrangement was subject to fees because the office is not subsidized by the government.  (source)

INDONESIA - HALAL - PBNU Drafts Halal References

www.TEMPOInteractive.com, SURABAYA:The leaders of Nahdlatul Ulama (NU) are working on drafting halal standards. As such, all production distributed among NU members must be approved by the Nahdlatul Ulama Businessmen’s Association (HPN). The special standard is part of the recommendation produced during the “Rembug Saudagar NU and NU Expo 2012” that was held in Surabaya from January 26 – 29.

“This is important because 70 percent of Muslims in Indonesia are NU members. We have an interest to keeping the products used and consumed by NU members halal and ensuring they are manufactured honestly,” said HPN chairman Abdul Kholik. (source)

INDONESIA - BANKING - Assets Islamic banking up 49 %

www.tempo.co - TEMPO.CO, Jakarta-booming Islamic banking assets throughout 2011. Total assets of Islamic banks grew 49 percent from Rp 79.6 trillion in 2010 to Rp 149 trillion. "This figure includes 154 assets Sharia Rural Banks," said Director of Bank Indonesia Sharia Banking, Mulya E. Siregar, Monday, January 23, 2012.

With these achievements, the national Islamic bank managed to achieve 4 percent market share of banking assets, up 0.72 percent from 2010. Islamic bank financing nationwide had reached Rp 105 trillion, or grew 50.6 percent over the same period of 2010. Third party funds that can be collected by Islamic banks in 2011 also rose 51.78 percent to Rp 118 trillion. (source)

INDONESIA - BANKING - Islamic Banking Financing Up

www.tempo.co - TEMPO.CO, Jakarta-Sharia Banking Director of Bank Indonesia (BI), Mulya E. Siregar, said Islamic banking financing increased in the fourth quarter in 2011 amounting to Rp 102.11 trillion, compared to same period 2010, Rp 70.24 trillion. "Improvements 45.37 percent," said Mulya in talk show Monetary (BBM) in the Press Room BI, Thursday, January 5, 2012.

Increased funding is also accompanied by a decrease in credit crunch (nonperforming finance gross) from 3.12 percent to 2.85 percent. According to Mulya, this shows the quality of financing an increasingly awake. (source)

INDONESIA - PAWN BROKING - BI Reminds Sharia Banks on Gold Pawn

TEMPO Interactive, Jakarta:The volatile gold prices and the widespread practices of gold pawning in the banking sector have concerned Bank Indonesia. The central bank has reminded sharia banking to be careful in financing gold pawning. “Basically, it is allowed, but it has to comply with the guidelines,” said Bank Indonesia Deputy Governor Halim Alamsyah on Monday.

Many banks suspended their gold pawning services after gold prices declined within the last month. Precious metal price at the PT Aneka Tambang is now only IDR 495,000 per gram after hitting IDR 515,000 per gram. (source)

INDONESIA - FINANCE - Indonesia Not Utilizing IDB Fund Efficiently

TEMPO Interactive, Jakarta:Despite its large shares, Indonesia’s absorption of the Islamic Development Bank (IDB) loan remains low.


Former IDB executive-director to Indonesia, Karnaen A. Perwataatmadja, said the absorption of IDB funding by the Indonesian private sector was lower than other members. “In other countries, the benefit was higher than the fee,” he said in a seminar titled “Indonesian Private Sector Funding Access from IDB Group Fund Resource” in Jakarta yesterday.  (source)

INDONESIA - BANKING - Indonesia Sharia Banking Assets Grow 40 Percent

TEMPO Interactive, Jakarta - The growth of Islamic banking assets in Indonesia is quite high. "Total assets grew 40 percent in 5 years," said Deputy Governor of Bank Indonesia (BI), Halim Alamsyah, on the sidelines of the 2nd D-8 Working Group on the Development of Islamic Financial Services Industry, said here on Friday, 11 November 2011. (source)

INDONESIA - REGULATIONS - OJK Bill Approved

TEMPO Interactive, Jakarta:Indonesia's parliament on Thursday approved a long-delayed bill creating a new regulator to oversee a growing financial industry in Southeast Asia's largest economy but faced widespread skepticism on how effective the watchdog would be.

The new regulator, to be known as the OJK, will take over the supervision of banks, brokerages and insurance firms from the central bank and capital market watchdog Bapepam-LK starting from 2013.  (source)

INDONESIA - INSURANCE - World Bank Starts Campaign on Microinsurance

TEMPO Interactive, Jakarta:The World Bank has started a campaign on the importance of insurance for the poor. Stefan Koeberle, the World Bank’s Country Director for Indonesia, suggested Indonesia to develop microinsurance.

Indonesia’s natural landscape, which is prone to disaster, is considered to have a major impact on marginal household. Should a natural disaster occur, the impact is more severe in these household. So far, there are 77 million out of 238 million Indonesian citizens living without insurance or savings.  (source)

INDONESIA - BANKING - UAE Eye Indonesian Banks

TEMPO Interactive, Jakarta:The United Arab Emirates is interested in investing in Indonesia’s banking sector. Mansyur Pangeran, the Indonesia Consulate-General to UAE, said that two of the country’s major banks have shown serious interest in exploring the possibility of bank purchase.  (source)

INDONESIA - CAPITAL MARKETS - Indonesia Has Short-Listed Banks for Possible Global Sukuk Issuance

JAKARTA, KOMPAS.com - The Indonesian government has short-listed four banks as possible arrangers for a global sukuk issuance planned for later this year, bankers said Thursday. Two bankers told Dow Jones Newswires the four banks are CIMB, HSBC, Standard Chartered and Citigroup.
The latest development marks further steps taken by the government to tap the offshore Islamic bond market after it decided in June to delay the planned issuance to around September or October from an initial plan of July as it was still seeking approval from parliament on the assets it could use to back up such bonds.
Finance Minister Agus Martowarodjo said in April the government would seek to raise up to $1 billion from a global sukuk issuance in the second half of 2011. (source)

INDONESIA - MICRO FINANCE - KUR - "Micro-Credit Loans to Be Raised to Rp25 Trillion": Hatta

TEMPO Interactive, Jakarta:Indonesia plans to raise the amount of KUR micro-credit loans to Rp 25 trillion this year, from the previous Rp 20 trillion figure allocated, top economic minister Hatta Rajasa said over the weekend.

“This is a request from President Yudhoyono,” said Rajasa after a dialogue with businessmen in Pasar Baru, Bandung, yesterday. (source)

INDONESIA - KUR - FINANCE - First Lady Criticizes State Banks Over Failure to Provide Micro Loans

Jakarta:Indonesia's First Lady Kristiani Herawati Yudhoyono on Wednesday criticized state banks over its credit distribution policies, particularly in regard to micro, small, and medium enterprises (MSMEs). According to the First Lady, craftsmen and other small businessmen continued to complain about how difficult it remained to obtain microfinancing or micro loans from state banks. (source)

BANKING - Sharia Banks to Manage Hajj Funds, says BI

TEMPO Interactive, Jakarta:Bank Indonesia’s sharia banking director Mulya Siregar says the central bank supports sharia banks managing hajj funds. “Ten years ago, it was impossible for sharia banks to manage hajj funds, but now it’s possible,” said Mulya during the launch of the Indonesia Halal Business & Food Expo held in Jakarta yesterday. (source)

CAPITAL MARKETS - Bapepam Releases Sharia Stock Exchange List

TEMPO Interactive, Jakarta:The Capital Market Supervisory Agency – Financial Institution (Bapepam-LK) has announced the Sharia Stock Exchange List, which will be used as an investment guideline for sharia stock exchange users. “It’s like an investment manager,” said Bapepam-LK head, Nurhaida, on Wednesday.

As many as 225 stocks included in the new regulation cover the types of company shares, public enterprises and other sharia shares. Later, Bapepam will review the Sharia Stock Exchange List periodically based on mid-year as well as annual financial reports from the company or public enterprise. (source)

ECONOMY - WIEF Interested in Agriculture Industry

TEMPO Interactive, Jakarta:World Islamic Economic Forum (WIEF) head Tun Musa Hitam said that through the WIFE, Kuwait would allocate US$ 100 million to develop the agriculture industry in Indonesia. Kuwait plans to develop agricultural areas in Indonesia to meet the local demand and agricultural product exports to the Middle East. "This collaboration creates food stability for both countries," said Tun Musa Hitam in Jakarta yesterday.


The WIEF will also promote syaria funding to participating countries, a banking system that has increased in popularity following the global financial crisis three years ago. More funding institutions are applying the system, said Tun Musa. (full story)