Monday, November 24, 2008

Islamic Financial Institution is Not Ready with Net Income Profit Sharing Concept

Senin, 17 November 2008

Jakarta, 17/11. Islamic financial institutions (IFI's) in Indonesia are not ready with the concept of net profit sharing ratio of their shariah products based on the profit sharing principle. At the moment, the profit sharing ratio of IFI's in Indonesia is still using the concept of revenue sharing, or gross profit income, as explained by Hanawijaya, the Director of Bank Syariah Mandiri, at the luncheon of Annual meeting of the Nantional Shariah Board, last Saturday, November 15, at Taman Impian Jaya Ancol Jakarta.
The National Shariah Board has been recommended that IFI's should apply the net income profit sharing instead of the gross profit.

In respond to the National Shariah Board recommendation, Hana said that if it is become an obligatory to apply the net income profit sharing for IFI's , we are not ready since we are still lacking of the human capital and ICT. Therefore, he recommended that there is a necessary to adjust the infrastructure in creating the new system of IFI.

On the other hands, Hana wished that the collaboration between the National Shariah Board and the Islamic Bankers could be improved, and Hana hopes that the National Shariah Board could continuously monitoring the activity of Islamic bankers to ensure that IFI operation is shariah Compliant.

([hsn/Nibra www.pkesinteraktif.com]

BRI Syariah to become full-fledged Islamic Bank

Kamis, 21 Agustus 2008

Jakarta (21/8). Islamic Bank will develop and growth in this country, apparently the Islamic commercial unit of BRI will become a full-fledged Islamic Bank, this year. There will a transformation of the 3 main Pillars which will be the leading edge for the BRI Syariah spin off.

Eko BambangThe above statement came from Division Head of BRI Syariah, Eko Bambang Suharno. The three main pillars are: Information and Technology, company’s Policy and Human Capital.

The Information and Technology enhancement will stress on the on-line networking system in all branches, including the Islamic windows, which BRI Syariah customers could use BRI conventional system of ATM. "When the spin of process is done, BRI Syariah will work on developing the IT network quality, to create value added," said Eko Bambang.
There will be some improvement in all branches in regard to the system of saving and financing services, with a better management of customer database.

For the company’s policy BRI Syariah will provide its own policy of long term business projection, in determining fund allocation to the potential sectors to increase company’s growth.
" For the Human capital, BRI Syariah will keep on develop its human capital competency, quality, and quantity by internal or external recruitment process” explained Eko.

(Nola/Nibra, www.pkesinteraktif.com)

Monday, November 17, 2008

USD 196 million agreement between IDB and the Tunisian Company for Electricity and Gas.

IDB - News - 18 Nov 2008

The Islamic Development Bank Group will sign a USD 196 million (123 million Euro) agreement on Friday, 14 November 2008 with the Tunisian Company for Electricity and Gas (acting on behalf of the government of Tunisia). The project financing is described as the largest financial contribution made by the IDB Group to Tunisia to date, further confirming the remarks made by IDB President Dr. Ahmad Mohamed Ali that in the midst of the current international financial crisis, IDB Group remains unaffected by the crisis and is “financially strong and despite the current market conditions, it will be able to meet its commitment to member countries and conduct its normal operations.”

The agreement will deal with the extension of the Ferian and Thyna Power Plant in Tunisia and includes the financing of works related to the procurement and installation of two gas turbine units, including studies, civil works, and commission as well as supervision. IDB Group President Dr. Ahmad Mohamed Ali, Tunisian Minister for Development and International Cooperation Mohamed Nouri Jouini, and President of the Tunisian Company for Electricity and Gas Osman Ben Arfa will sign the financing agreement.

The proposed project joins an extensive list of 55 projects that the IDB Group launched in Tunisia since 1977 amounting to 534 million Islamic Dinars (or USD 759.8 million). Among the IDB Group modes of financing utilized in Tunisia include equity, loans, istisna'a (manufacturing contracts), and technical assistance (grants) targeted towards electricity, water, agriculture, social services, industrial and banking sectors. The cooperation between the Islamic Development Bank Group and the Republic of Tunisia is a unique model of human development for economic development beyond just direct technical cooperation. Through its partnership with Tunisia, IDB has carried out humanitarian operations such as restoring eyesight to more than 5000 blind men, women and children in more than a dozen African countries.

Tunisia is a beneficiary of the IDB’s Merit Scholarship Programme, by which, IDB provided scholarships to 20 Tunisian science and technology researchers at the doctoral and post-doctoral level to study at reputed institutions in the world. Also, Tunisia has supported the IDB’s Scholarship Programme for Muslim Communities in Non-Member Countries and the M.Sc. Scholarship Programme for LDMCs by helping to place 136 students from French speaking African countries under the Scholarship Programme for Muslim Communities and 19 under the M.Sc. Programme in various universities in Tunisia.

Wednesday, November 12, 2008

BCA definitely will establish full-fledged Islamic Bank


Kamis, 30 Oktober 2008
Jakarta (30/10) Bank Central Asia (BCA) will certainly establish a full-fledged of Islamic bank by the acquisition of 100% ownership of PT Utama Internasional Bank (UIB).

The President Director of UIB D.E Sutijoso, has confirmed such acquisition will take placed on his press release in Jakarta yesterday, in 2009, the ownership of PT UIB will be officially transferred to BCA.

"Both parties has been signed an agreement under sale contracts on October 24 2008" said the President Director of P T UIB.

The business opportunity of UIB for BCA is quite promising since the UIB asset has a total amount of IDR 665.7 billions, with credit portfolio of IDR 462.2 billions and as of June 2008, the third parties funds has reached IDR 553.6 billions.

D.E Sutijoso said that UIB has five branch offices and 7 cashier's offices, the acquisition process will take about one year to be completed.

Islamic Finance observers, from Karim Business Consulting, Adiwarman Karim, said that the expected growth of Islamic banking business will be raised to 5%. As of July 2008, the Islamic banking total asset has reached IDR 43 Trillions and will increase to IDR 75 trillions which is about 4% by end of the year.

Moreover Karim said: "as a comparison of last year it needed 12 months to have IDR 10 trillion increment, but now it can be achieved by only seven months, it is easy to accomplished the 5% target. In order to achieve the 75 trillions or 4% by the end of the year is very easy and hopefully by 2009 it will pass beyond the 5%." The acceleration growth of Islamic banking business is because now we have Islamic banking act, we have issued sukuk and by next year double tax deduction is going to be removed.(Agus/Nibra www.pkesinteraktif.com)