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Operational Aspects of Pt Bank Muamalat Indonesia as an International Islamic Bank in Malaysia

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Operational Aspects of Pt Bank Muamalat Indonesia as an International Islamic Bank in Malaysia
OPERATIONAL ASPECTS OF PT BANK MUAMALAT INDONESIA AS AN INTERNATIONAL ISLAMIC BANK IN MALAYSIA
MOHD FODLI HAMZAH (Student ID: 0700539)
PT BANK MUAMALAT INDONESIA, KUALA LUMPUR BRANCH

20th SEPTEMBER 2012

pg. 0

Abstract
Among the Malaysia key Islamic Financial initiatives are the issuance of new license to foreign interest within the domestic Islamic financial institutions as well as International Islamic Banks and Takaful operators. The objectives are to establish Malaysia as a leading international and regional hub of Islamic finance in the Asian Region. Pt Bank Muamalat Indonesia is one of the foreign Islamic Bank established as a branch operating under the MIFC initiatives. Among the International Islamic Banks in Malaysia, Pt Bank Muamalat Indonesia Kuala Lumpur Branch is the only international Bank that actively involved in full banking business activities particularly in corporate, treasury and retail banking. As a branch the bank need to adhere to the regulation imposed by Central Bank of Indonesia as well as Malaysia particularly in banking regulation and Shariah aspects. The paper discusses the challenges and the opportunity faced by the bank in managing their banking operations. The paper also discusses about some strategic operational planning undertake by the bank to grab the business opportunity locally as well as regionally. It was proven with substantial growth since inception whereby the bank managed to register financial breakeven only in the 11th month of its operation. The author foresee the establishment of BMIKL gives a better impact to the growth of Islamic financial industry in Malaysia particularly in providing wide range of international banking facilities in international currencies other than Ringgit Malaysia with residents and non-residents. Besides that BMIKL play an important role to harmonize the Shariah matters between Malaysia and Indonesia.

pg. 1

1.

Introduction

Malaysia 's long track record of building a


References: Mckinsey,(2007-08), Capturing The Trillion Dollar Opportunity, The World Islamic Banking Competitiveness Report M.Suyanto (2009), The Performance Of Bank Muamalat Indonesia During 2000-2004 : An Exploratory Study, STMIK Amikom Yogyakarta Islamic Banking and Takaful Department, Guidelines on International Islamic Bank, Bank Negara Malaysia, BNM/RH/GL/002-9 Ahmadfathi (2008) , International Finance: Analysis On Myr Bank Indonesia (2005), Peraturan Bank Indonesia Nombor 7/1/PBI/2005 Tentang Pinjaman Luara negeri Bank KashifHasan Khan, A Critical Review Of Shari’ah Supervision On Current Financial Transactions, JamiaMilliaIslamia University, New Delhi, India Muhamad Nadratuzzaman (2012) Comparative analysis of islamic banking products between Malaysia and Indonesia, Islamic University of Jakarta, International Journal of Academic Research in Economics and Management Sciences April 2012, Vol. 1, No. 2 ISSN: 2226-3624 ) Asyraf Wajdi Dusuki , Commodity Murabahah Programme (CMP): An Innovative Approach to Liquidity Management, International Islamic University Malaysia. CFO Innovation Asia Staff (2012) Sovereign Risk for Malaysia Improves; India and Indonesia Deteriorate, http://www.cfoinnovation.com PT Bank Muamalat Indonesia, Tbk, 2011 Annual Report www.bnm.gov,my pg. 24
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