IslamicFinance.de

Indonesia’s central bank hopes to attract a local bank to sign up as primary dealer for short-term sukuk issued by the International Islamic Liquidity Management Corp (IILM). Bank Indonesia is one of 10 shareholders in the Malaysia-based institution, but it still lacks a local dealer bank for IILM sukuk. IILM sukuk just got issued recently, with limited outstanding, its illiquid and does not have secondary market. Hence, IILM sukuk is not yet well known by Indonesia-based primary dealers. A domestic primary dealer could help address this problem, even though other dealer banks have an indirect presence in the country, such as CIMB Islamic, Maybank Islamic and Standard Chartered Bank. Moreover, it could help the central bank justify its $5 million shareholding in the IILM.