Malaysia to buy stake in Bank Muamalat<\/p>\n
JAKARTA (JP): Malaysian Deputy Prime Minister Anwar Ibrahim
\npromised President B.J. Habibie yesterday that Malaysia would
\npurchase a 49 percent stake, worth US$15 million, in Indonesia's
\nonly Islamic bank, Bank Muamalat Indonesia.<\/p>\n
The chairman of the Indonesian Ulemas Council (MUI), Hasan
\nBasri, said the agreement was reached during a telephone
\nconversation between the two leaders yesterday morning.<\/p>\n
"The deal will be settled in three days," Hasan said after
\nmeeting with Habibie and the bank's president, Zainul Arifin, at
\nBina Graha presidential office yesterday.<\/p>\n
Bank Muamalat, an interest-free bank, was established in 1991
\nby 57 social and business institutions, and 180 individuals
\nincluding former president Soeharto, Habibie, Soeharto's
\nrelatives Probosutedjo and Sudwikatmono, Ginandjar Kartasasmita,
\nand tycoon Mohammad "Bob" Hasan.<\/p>\n
It started operating in May 1992, with an initial paid-up
\ncapital of Rp 73.05 billion (US$5.2 million).<\/p>\n
According to Zainul, Soeharto's family and Amal Bakti Muslim
\nPancasila, which Soeharto chairs, controls 8.1 percent of total
\nshares.<\/p>\n
The bank bases its operation on profit and loss-sharing
\ncontracts and does not pay interest.<\/p>\n
"The President has agreed to the sale of the shares because
\nIndonesia wants to learn from the experience of Malaysia in
\ndeveloping banks based on Islamic laws," Hasan noted.<\/p>\n
Hasan also acknowledged that fresh money was needed to fulfill
\nthe government's requirement for banks to have a minimum capital
\nof Rp 250 billion ($17 million) by the end of the year.<\/p>\n
However, Hasan added that the bank was also seeking government
\napproval to be exempt from the minimum requirement, saying the
\nbank was not a commercial bank.<\/p>\n
Malaysia was selected as new partner because the country's
\nSyariah Bank has won international recognition for its success in
\nimplementing a purely Islamic bank, said Zainul.<\/p>\n
Zainul said the current economic crisis also had a significant
\neffect on the Islamic bank as most of its customers were small
\nand medium-scale entrepreneurs.<\/p>\n
"When the real sector is weak, the profit is also small and
\ncan no longer be divided," Zainul remarked. (prb)<\/p>",
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