Riffrag Business & Finance Report

JAKARTA – PT Bank Maybank Indocorp, banks owned by Malayan Banking Berhard (Maybank) from Malaysia in Indonesia will be converted into Islamic banks.

“We’ve listened to (the plan) Maybank in Indonesia will be converted, but it is formal yet (submitted),” said Director of Bank Indonesia Sharia Banking Ramzi A Zuhdi to the press in Jakarta, Sunday (9/11/2008).

Later sharia business unit (UUS) in Bank Internasional Indonesia (BII) recently acquired by Maybank will be merged in the Islamic bank. “They will combine UUS property into Maybank BII,” he said.

Besides Maybank, an Islamic bank of a joint venture between Bank of the West Java Regional Development with dubai investors will soon stand. “Before the end of this year,” he said.

BPD Jabar Banten will spin off the business unit for later merged syariahnya in sharia banking joint venture. He added, for the initial capital in accordance with the provisions of the BI to make a new bank that is Rp1 trillion.

Presence of a new Islamic banks, according to him, yet can accelerate the growth of five per cent of Islamic banking. “We still need time, let alone the current economic conditions are still Gonjang-ganjing,” he said.

Director of Bussiness Consultant Adiwarman Karim Karim said, in 2009 is expected to add nine new Islamic banks to become commercial banks 12 sharia.

According to him, of the nine new bank, was founded by six local banks and three of them were founded by Middle Eastern investors. With the addition of these nine banks, according to him will make the share of sharia

LONDON – A group of international banks and regional meeting with the Dubai World for the first time on Monday to discuss efforts to restructure the company in debt for $ 26 billion.

As quoted by Reuters on Tuesday (8/12/2009), the meeting was reported the Financial Times is a long process. Where this meeting also involved the major creditors who wish set up a committee.

In addition, the process of debt restructuring is key to the Islamic bonds or sukuk, issued by Nakheel, a company’s real estate subsidiary of Dubai World, which is scheduled to be redeemed on December 14, for $ 4, 05 billion.

The report quoted from someone close to the negotiations say that there are different opinions among the borrowers.

“Some lenders think if there is bad credit, everyone must stop. On the other hand, some people believe that the sukuk must be paid back by all means,” the source disclosed.

In addition, companies listed on the London Standard Chartered, HSBC, Lloyd, and Roy Bank of Scotland (RBS.L) is scheduled to attend the meeting along with the borrower from the United Arab Emirates Abu Dhabi Commercial and Emirates NBD.

Central Bank of United Arab Emirates have also told local lenders to report their exposure to the Dubai World and related entities.

As is known, a consortium of Dubai World has recently asked for suspension of debt payments (standstill) to six months to foreign creditors. Dubai World requested postponement until May 2010.

Debt that must be borne by Dubai World for $ 60 billion. When including interest, which must bear the burden of corporate groups that government support be approximately $ 80 billion.

JAKARTA – PT Bank Negara Indonesia Tbk (BBNI) had received bilateral loan worth USD 100 million from Wachovia Bank in the United States (U.S.).

President Director Gatot M Suwondo, the signing of bilateral loan agreement in Jakarta on Wednesday (10/12/2008) says, a loan with a tenor of one year will be used to strengthen the liquidity of foreign exchange (forex) companies.

According to Billy, in addition to getting funds to support the liquidity of foreign exchange, loans from international banks also showed BNI reputation and credibility, and trust of the international banks to the Indonesian economy.

In addition, he revealed that the company and Wachovia Bank has a long relationship and mutual benefit. “Cooperation with Wachovia Bank to strengthen both institutions, especially in international business transactions,” he said.

Wachovia Bank is the fourth bank in the U.S. and has a network in various countries, including Germany, Hong Kong, Japan, Taiwan, Korea, United Kingdom, and Vietnam.

Agreement was also conducted by the Director of Treasury and the International BNI Bien Subiantoro and Wachovia Bank’s Managing Director for Southeast Asia and India Charles H Silverman

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Bank Indonesia berrencana restrict foreign banks operating in Indonesia, especially for segmentation and regional operations. However, the Central Bank will not restrict foreign ownership of banks in Indonesia because it is bound by the agreement of the World Trade Organization (WTO).

This was revealed by Senior Deputy Governor and Acting Governor of BI Nasution Nasution in Jakarta, Friday (8 / 1). According to him, the Central Bank was bound by the global agreements that can not just limit foreign ownership in Indonesian banks. However, bank regulators have the authority to limit operations in foreign banks.

“If it (the problem of ownership) we have bindings (tied) in the WTO’s so-diutik not utik. It’s more on how to open a branch, how the operations area. It means we can not also deny that we had agreed at the WTO.’s Name for people angry, will be considered a promise, “said Nasution.

However, Nasution admitted keberpihakannya on foreign bank ownership restrictions. One of them by encouraging smaller banks to merge with other national banks. This is to prevent the acquisition or annexation by foreign banks. In addition, the Bank plans to give leeway in terms of minimum capital ownership have been the drivers of a small number of banks falling into foreign banks.