Vice President Ma'ruf Amin: Sharia Financing Can Be Implemented In The Sustainable Energy Transition Program

Indonesian Vice President Ma'ruf Amin. (Photo: Doc. Antara)

JAKARTA - Indonesian Vice President Ma'ruf Amin assessed that the sharia financing mechanism could be applied to finance various sustainable energy transition programs.

"Sharia financing scheme can be a very appropriate source of financing for various sustainable energy transition programs," said the Vice President in his remarks while attending the 2024 Sharia Economic Forum (NUSHAF) online monitored in Jakarta, quoted from Antara, Tuesday, July 30.

The vice president said that Islamic economics and finance are also believed to be able to take a significant role in supporting a sustainable inclusive economic transformation.

"This is reflected in the integration of Islamic economic principles in the RPJPN (national long-term development plan) and RPJMN (national medium-term development plan) as the main program in the policy direction of developing productivity-based economic transformation," said the Vice President.

He revealed that maintaining a natural balance and reasonable use of natural resources (SDA) and ensuring environmental sustainability are principles of the Islamic economy.

According to the Vice President, this is in line with various sustainable economic policies, especially the energy transition to a low-carbon economy.

"Various examples of Islamic finance and green financing adhere to the same principle, namely risk division and encouraging sustainability and innovation," said the Vice President.

In the future, said the Vice President, the contribution of the sharia economy to reducing carbon emissions will be further strengthened by making the green economy one of the main pillars in the Islamic economic master plan 2025-2029.

"These various steps are believed to strengthen the position and role of the Islamic economy and finance as an important pillar of national economic development in order to realize the vision of Indonesia Gold 2045, namely the Archipelago State as Sovereign, Advanced, and Sustainable," said the Vice President.