IMF-WB – Indonesia Begins to Focus on Developing Sharia Social Finance

Nusa Dua, Bali, MINA — Indonesia has begun to focus on developing not only sharia commercial finance industry but also sharia social finance industry, Antara News reported, citing Finance Minister Sri Mulyani.

“For the Indonesian government, sharia products also serve as a means to add to the types of financing needed to achieve the goal of national development,” she said on the sidelines of the IMF-World Bank Group annual meetings here on Sunday.

Sharia finance industry can be used to reduce poverty rate and overcome inequality by fulfilling the people`s basic needs, empowering the low-income people, and opening access to the business world, she said.

Sharia social finance industry can also support the attainment of 17 indicators in the Sustainable Development Goals (SDGs), she said.

The cost of achieving SDGs worldwide will reach US$6 trillion per year. The next big task is how to find financing, she said.

The minister said sharia finance industry offers additional option to achieve SGDs. Sharia bond (sukuk) is an instrument to finance the attainment of SDGs.

Today, sharia retail bond (sukuk) is the government`s most important instrument. As of July 12, 2018, the amount of sharia state bonds reached Rp906.1 trillion.

“Indonesia also uses retail sukuk not only to diversify its financing sources but also to promote financial inclusion,” she said. (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA).