Indonesian Govt Increases Sharia Financing for Infrastructure

Jakarta, MINA – Director of State Financial Risk Management of the Ministry of Finance, Heri Setiawan said the involvement of Islamic financial institutions in financing programs that accelerate the development of national infrastructure needs to be encouraged.

“Because, its involvement is still limited, especially when it saw the potential for the development of Islamic financial industry which is now growing rapidly,” said Heri as quoted by Republika on Wednesday, October 2.

Based on the basis, Heri said the government provides guarantees of Islamic finance in accelerating the development of electricity infrastructure of PT. PLN (Persero). The policy takes effect from mid-September.

“This is in order to increase the participation of Islamic financial institutions in infrastructure financing,” he said.

The provisions for sharia financing guarantees for electricity infrastructure acceleration are outlined in the Minister of Finance Regulation.

Heri said the involvement of Islamic financial institutions for limited infrastructure financing was natural. Therefore, the size of industry that is still small and new to the layman in middle of Indonesian society.

But, Heri said the growth of Islamic financial industry will be faster. This projection is considering various government programs to support it, both in terms of banking or real sector.

“Participation of Islamic financial institutions is definitely increasing, especially in infrastructure financing,” he said. (T/Sj/P2)

Mi’raj News Agency (MINA)