BI Says Green Sukuk Indonesia Is The Largest In The World

Governor of Bank Indonesia (BI) Perry Warjiyo. (Photo: Doc. ANTARA)

JAKARTA - Bank Indonesia (BI) continues to innovate to maximize the development of Islamic financial market instruments in supporting global economic recovery to continue to be strengthened.

Governor of Bank Indonesia (BI) Perry Warjiyo said, Bank Indonesia continues to innovate to maximize the benefits of using sustainable market instruments in the form of green sukuk in the short-term Islamic financial market.

"Indonesia's success in becoming the publisher country of Green Sukuk with the greatest value in the world is highly appreciated by IsDB member countries," he explained in his statement, Tuesday, April 30.

This was conveyed in the 50th Annual Meeting of IsDB with the theme Accelerating Climate Finance through Green and Sustainability Sukuk which was attended by 57 IsDB member countries in Riyadh, Saudi Arabia.

On this occasion, Perry also emphasized 3 (three) key factors for Indonesia's success in developing and managing Sukuk.

Perry conveyed that the first factor is to get a commitment and build strong investment projects through the right partners, coordination of all stakeholders, and massive socialization.

Second, establish clear Green Sukuk strategies and frameworks that are complemented by political support, policies and regulations, as well as solid cooperation between countries through standard practices.

Third, issue sukuk to encourage monetary policy and develop the money market.

As part of the policy in supporting exchange rate stability, Bank Indonesia has also issued Sukuk Valas Bank Indonesia (SUVBI) as a pro-market monetary institution that can be an alternative to new instruments to manage the liquidity of Islamic financial actors.

"IsDB member countries view Bank Indonesia as successfully bridging the long-term financial market, especially environmental-based financial markets, with short-term financial markets," he explained.

According to Perry, this achievement is reflected in the issuance of Sukuk Bank Indonesia (SUKBI) which is currently the main instrument in deepening the financial market and managing Islamic monetary at Bank Indonesia.

"The use of green sukuk instruments as an underlying for the issuance of SUKBI is considered a matter that needs to be explored by various central banks of IsDB members and expanded their benefits in deepening the global Islamic financial market," he concluded.