BANKING AND REFINANCING WITH POOR CREDIT

NO GUARANTEE AT USD 100 MILLION MORE

The threat of the crisis on the Indonesian economy has passed. Macroeconomic policy stakeholders were central review several post-crisis policy. One of them, a matter of policy the deposit guarantee limit on bank customers. Reduce the value of the guarantee policy is under review, said Firdaus Djaelani, Chief Executive of the Deposit Insurance Agency (DIA).

However, the decision in the hands of the government and have consulted with the Parliament, so that provisions guaranteeing maximum customer funds up to USD 2 billion.

LPS see the current condition of Indonesia's economy has been far more peaceful, stable, and relatively far from the threat of the crisis, despite the economic uncertainty in Europe in recent years had sparked unrest in the global market. Needs assessment from the Ministry of Finance and Bank Indonesia (BI) prior to changing the boundaries of the guarantee, said Firdaus.

Post-crisis policies are also being reviewed is the BI policy matter of statutory reserves and short-term funding facility for banks. Given the many policies that should be reviewed, Firdaus guarantee limit is difficult to predict the changes made this year.

Before the global financial crisis burst in 2008, LPS only guarantee funds in banks under the USD 100 million. However, when the financial crisis of 2008 exploded and Singapore implemented a full guarantee, the government decided to raise the guarantee limit to $ 2 billion.

Although the discourse of decline now appears that the guarantee limit, Paradise explained, most likely will not return to the original boundary, ie USD 100 million.

There are provisions which became ancar-ancar determination of collateral value in many developing countries, amounting to five to six times income per capita. If our current per capita income of U.S. $ 3,000 per year, the maximum value of approximately USD 200 million guarantee, it is clear Firdaus.

Banking circles a little worried to hear that plans to change the guarantee limit. Vice President Director of Bank Panin Roosniati Salihin hope that the stakeholders be careful issued a policy. Do not to cause unnecessary shocks.
According Roosniati, too drastic if the guarantee numbers down from USD 2 billion to USD 100 million. Need to transition to industry and society are ready. Our economy is far from crisis, but such a policy can not be drastic.

Bank BRI President Director Sofyan Basir added LPS suggests growth in third party funds (TPF) as the considerations set a limit on the guarantee. To get a clear picture of the banking risks in collecting deposits.


TOM CHANCE Aaker still hang, BI WAIT TEST RESULTS

A series of names of prospective chief executive of banking is still awaiting the results of the fit and proper test of the Bank Indonesia (BI). One of them was a candidate for the Chief Executive Officer (CEO) of Standard Chartered Bank (Standard Chartered), Indonesia, Tom Aaker.

As planned, Aaker will replace the old CEO of Standard Chartered, Simon Morris. Name Aaker, he holds an MBA from the Kellogg School, Nortwestern University in Chicago, United States, have entered into the BI since November 2009. Yet, somehow, even though six months had passed, until now Aaker not being obtained results are fit and proper test.

Senior Manager Public Affairs Amirnarno Kemaputra Standard Chartered said, until now it was still awaiting the results of the fit and proper test by Tom Aaker. We still have not received test results from the BI, he said.

BI recognizes Aaker selection was considered long. Director of Licensing and Banking Information BI Joni Swastanto revealed, it should check and double cross-check in advance with the bank authorities in the State Tom Aaker had served previously. Now we just wait for the approval of the BI alone, said Joni.

Joni said, the actual process does not only happen to Aaker, but also applies to other foreign bankers. That's because I have to ask the bank supervisory authorities in the State was the last person on duty, obviously Joni.

Aaker is the banker of U.S. citizens (U.S.). Aaker himself began his career at Standard Chartered in 1993. During his career, Tom has held several important positions in Standard Chartered Hong Kong, UK and U.S.. Prior to Indonesia, Aaker served in Zambia, Africa, as managing director and served as CEO of Standard Chartered Qatar, the Middle East.

Just infirmasi, the performance of Standard Chartered in Indonesia counted fairly. Last year, net income reached USD 605.9 billion, Standard Chartered. This figure is greater than their net profit in 2008 amounted to Rp 551.9 billion.


INCREASED FUNDING, FUNDS ON SHARIA BANKS BI to shrink

Piggy bank Bank Indonesia Wadiah sharia (SWBI) or SBI Syariah increasingly shrinking. Citing BI data at the end of March 2010 and, in SWBI funds remaining in the USD 2.42 trillion, down 27.27% from the end position in December 2009 which amounted to Rp 3.08 trillion.

Director of Bank Syariah Mega Indonesia Beny Witjaksono said there were two things that cause a decrease in funds SWBI. First, the upward trend of Islamic banking financing. This year's average of Islamic bank financing is targeted to grow 30%, said Beny, who is also Treasurer of the Association of Indonesian Islamic Banking (Asbisindo) this.

In late March, the total funding that has been distributed by the Islamic banking to reach Rp 50.21 trillion. That is, within three months managed to record growth of Islamic banking financing amounted to 7.13%. In late December 2009, total Islamic banking financing recorded Rp 46.87 trillion.

The height distribution of financing by the end of March 2010 and indicated by the increase financing to deposit ratio (FDR) to 95.07%. In fact, in December 2009 and FDR Islamic banking is still 89.7%.

The second factor, this transfer of funds from SWBI to the sukuk. The reason, for Islamic banking can get higher yields on the sukuk than in SWBI aka SBI Syariah.

Understandably, coupons provided by the sukuk reached 10% while SBI Syariah coupon is only 6.5%. However, Islamic banks still need this because the highly liquid instruments and short tenornya so well suited to manage liquidity, said Beny. While the sukuk investment choice because tenornya longer and greater the yield.

Director of Syariah Bukopin Riyanto added, SWBI this downward trend is already visible in the mid-year 2009. The reason Islamic banks rarely have liquidity problems. Islamic banks prefer to channel financing. This year 2010, Bukopin Sharia finance growth target to reach 30% -40%. Year 2009 and then, Bukopin Sharia financing channeled Rp 1.28 trillion.

Beny added, the decrease in SWBI Islamic bank funds is not related to space BI policy SBI and SBI auction schedule Sharia.


REVISED GOVERNMENT SO KUR Rp 13.5 TRILLION

The government decided to revise the target distribution of the People's Business Credit (KUR) in 2010 from Rp 20 trillion to Rp 13.5 trillion. The reason, KUR policy changes that became effective from the end of February 2010 must be followed by adjustments of the banking circles.

According to the logic grants, Deputy Coordinating Minister for Economic Affairs and Finance Macro, one of the policy change is an adjustment KUR assurance requirements, payment of underwriting fees, and reporting. This rule is amended through Regulation of the Minister of Finance (PMK) Number 22/PMK. 05/2010 concerning the Second Amendment Number 135/PMK PMK. 05/2008 on Guarantee Facility KUR.

To KUR, the government actually has set aside Rp 2 trillion of investment in the State capital (PMN) in this 2010. Of those funds, Rp 1.85 trillion was allocated to the underwriting fees. If the gearing ratio of 10 times, is expected to ensure the disbursement of Rp 18.5 trillion KUR, clearly grants.

Previously, banks were targeted delivery to dealers KUR Rp 18.2 trillion, in 2010 this year. Take the example of PT Bank Rakyat Indonesia Tbk (BRI) which target the distribution of KUR worth Rp 11.76 trillion. Details, or disbursement of microcredit loans berplafon KUR Rp 5 million, amounting to Rp 8.09 trillion, and retail credit or credit KUR worth more than Rp 5 million, amounting to Rp 3.67 trillion.

PT Bank Mandiri Tbk target the distribution of KUR Rp 1.25 trillion and PT Bank BNI Tbk (BNI) Rp 1 trillion. While the State Savings Bank (BTN), PT Bank Syariah Mandiri and PT Bank Bukopin each target of Rp 316 billion, USD 115 billion and Rp 350 billion. The rest, distributed by the 13 Regional Development Bank (BPD), which became the new executive of Bank KUR program amounted to Rp 3.5 trillion.

Erlangga said, channeling KUR in April 2010 reached Rp 1.35 trillion. Currently, the total outstanding KUR distribution since the program was rolled in the year 2007, had reached Rp 19.2 trillion. BRI is still the most widely distributed KUR bank. At the end of March 2010, BRI has been disbursed to the Rp 13.73 trillion KUR. These funds are provided to more than 2.52 million customers across Indonesia, said Abdul Salam, Director of Finance BRI.


FOREX INCOME tumbled BCA

Weakening United States dollar exchange rate (U.S.) during the first quarter 2010 impact on the decrease of foreign exchange earnings of PT Bank Central Asia Tbk (BCA). Deputy Director John Setiaatmadja BCA disclose, in the first quarter of 2010, foreign exchange earnings BCA only Rp 45 billion.

Though in the same period in 2009, revenues in the post has reached USD 210 billion. Our position so long as the dollar exchange rate dropped, revenues related to foreign currency also decreased. BCA gains from the spot and derivative transactions also fell. During the first quarter of 2009, BCA, foreign exchange and derivative gain of Rp 279 billion. Year 2010 was only Rp 267 billion.