Indonesia Invites Islamic Development Bank (IsDB) To Develop Global Corporate Sukuk Market

Minister of Finance Sri Mulyani. (Photo: Islamic Development Bank Youtube screenshot)

JAKARTA - The government through the Minister of Finance (Minister of Finance) Sri Mulyani said that the Islamic Development Bank (IsDB) has a strategic role to be able to realize a more massive issuance of corporate sukuk globally.

"I really appreciate if the Islamic Development Bank does not only focus on sukuk that are already classified as established as those issued by the government, but also improvise cooperation to release corporate sukuk," he said during the Launching Ceremony of the 2022-2025 IsDB Group MCPS agenda. for Indonesia, Tuesday, 19 July.

According to the Minister of Finance, this is very possible considering that Indonesia has successfully released global sukuk issued by the government.

"Corporate Sukuk have a very large potential and are currently still quite limited in issuance," he said.

The Minister of Finance added that the basic principle of issuing corporate sukuk must still refer to a measurable sustainable finance scheme.

“Sukuk must be able to promote the principle of efficiency and and in a credible manner. So, the instrument is not only lower in terms of cost but also must be effective for financing needs. This is an area that I see has the opportunity to be developed by Indonesia,” he said.

Citing the June 2022 edition of the State Budget realization report, it was stated that the government had issued green sukuk five times since its debut in 2018. The 2022 green sukuk issuance was recorded as the largest green sukuk globally, amounting to 1.5 billion US dollars.

"This publication proves the government's dedication and long-term commitment to green and sustainable financing, as part of efforts to fight climate change," reads the minutes of the state budget as quoted by the editorial today.

Furthermore, in May 2022 there will be two series of government retail SBN offered to the public, namely Retail Sukuk Waqf (SWR003) which has been open since April and Saving Bonds Retail (SBR) series 011.

Retail SBN is claimed to be present as a choice of safe investment instruments for the community as well as to accommodate the community's contribution to Indonesia's development.