UPDATE 1-Indonesia's BNI aims for $1.1 bln from rights issue

* Aims to raise 9-10 trln rph vs pvs forecast of 6-7 trln rph

* Aims to sell new shares above 3,000 rph a share

* Aims to sell new 3.3 billion shares in rights issue (Adds quotes, details)

JAKARTA, Sept 1 (Reuters) - Bank Negara Indonesia (BBNI.JK), the country's fourth biggest lender, on Wednesday lifted the size of a planned December rights issue to as much as 10 trillion rupiah ($1.1 billion), as it seeks to fund loan growth.

The state-owned bank's capital raising will come in the same month as fellow government lender PT Bank Mandiri's (BMRI.JK) planned 13 to 14 trillion rupiah rights issue, making the two rights issues the biggest in Indonesia after PT Bakrie & Brothers (BNBR.JK) raised about 40 trillion rupiah in 2008.

BNI previously said it would raise 6 to 7 trillion rupiah, but now sees greater demand from investors who have driven the Jakarta stock market .JKSE to record highs this year as they seek exposure to strong consumer demand in Southeast Asia's biggest economy.

"Our previous target was actually only about $400 million but the market has become more condusive," said Yap Tjay Soen, BNI's finance director. "We hope that we could sell the new shares above 3,000 rupiah a share."

Shares in BNI closed 1.4 percent down on Wednesday at 3,425 rupiah.

The company has previously said that it plans to sell 3.3 billion new shares through a rights issue, or equal to an 18 percent stake.

The government raised $153 million by selling a 3.1 percent stake in BNI last month at only a 3 percent discount to the share price at the time, with the sale heavily oversubscribed, reflecting the strong demand for bank stocks. [ID:nJKB003860]

Shares in BNI, which has a market capitalisation of $5.8 billion, have risen 73 percent so far this year, easily beating the broader market's 24 percent rise. (Reporting by Fathiya Dahrul and Janeman Latul, Editing by Neil Chatterjee)