What is going wrong with postgresql initdb? Why is the `UTF-8` encoding not getting enforced?

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I am using PostgreSQL 9.1. Trying to enforce UTF8 encoding as default.

This is what I am doing.

service postgresql initdb -E 'UTF-8' --lc-collate='en_US.UTF-8' --lc-ctype=locale='en_US.UTF-8';

Although the initilization process goes on without any problem,

a \l at the psql prompt gives there details.

                         List of databases
   Name    |  Owner   |Encoding  | Collate | Ctype |   Access privileges   
-----------+----------+----------+---------+-------+-----------------------
  postgres | postgres | LATIN1 | en_US | en_US| 

Why is the UTF-8 encoding not getting enforced?

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