Financial and banking industries are seriously penetrating into the retail market; this is also done by Bank Muamalat Indonesia (BMI) jointly with PT Alijarah Indonesia Finance (ALIF) for sharia-based car financing.

Monday, 30/8 the pioneer of sharia banking in Indonesia entered into an agreement with PT. Alijarah Indonesia Finance (ALIF). Bank Muamalat took ALIF for car financing facility based on purchase agreement (murabahah). Under this agreement, customers will be more protected from the risk of fluctuations in interest rates during the period of financing.

Located at the Head Office of Bank Muamalat, Jakarta, this event was attended by the President Director of Bank Muamalat, Arviyan Arifin, the Director of Bank Muamalat, Adrian A. Gunadi and the President Director of Alijarah Indonesia Finance Herbudhi S. Tomo. "This cooperation will broaden the spectrum of Bank Muamalat’s services for the community, in addition to financing risks that we experience will be more diversified" said Arviyan.

For the initial stage, Bank Muamalat poured sum of Rp 250 billions for this joint financing. In any given financing facilities, BMI would contribute as much as 95% of the ceiling and the rest shall be the portion of ALIF. In addition to contributing to the financing ceiling, ALIF also acts as driver in this program. BMI and Al Ijarah also make collaboration with sharia insurance companies and the leading car dealers to increase product excellence and customer accessibility.

AutoMuamalat will be supported by real-time on-line system and planned to give one-day approval service to customers. "This service will be present throughout Indonesia, but for the early stage we will begin it in 12 cities, namely Jakarta, Bandung, Semarang, Cirebon, Solo, Surabaya, Medan, Pekanbaru, Palembang, Banjarmasin, Samarinda, and Mataram", added Herbudhi.
PT. Alijarah Indonesia Finance is one of the subsidiaries of Bank Muamalat which was established on August 27, 2007. Three years since its inception, this sharia-based multi-finance company focused on corporate products finance. Through AutoMuamalat product that is developed together with BMI, ALIF plans to expand it’s retail financing.

"Banking is competitively vying to increase the retail portion both in the portfolio of funding collection and financing.  Hopefully, AutoMuamalat products which is developed together with Alijarah Indonesia Finance can increase the interest of the community in sharia-based automotive financing services", Arviyan concluded. (hnf/hnf)