JAKARTA - Minister of Finance (Menkeu) Sri Mulyani said the government succeeded in issuing sharia financing instruments (debt) in the form of green sukuk in June last year with a fund raising value of US$3 billion or equivalent to Rp43.5 trillion.
In his explanation, the Minister of Finance stated that the financial instrument has a tenor of 30 years with a very competitive yield of 3.55 percent per year.
"The achievement achieved with the issuance of sukuk is certainly an achievement to continue to build and manage sharia-based and environmentally-based debt instruments in a prudent manner," he said in a virtual dialogue on The Future of Islamic Capital Market held by KNEKS on Thursday, July 15.
The Minister of Finance added that in issuing a financing instrument this time, he said that RI had made its own history, namely that the 30-year principal repayment period was one of the longest in the world.
In addition, the former IMF boss revealed that foreign interest in Indonesian securities was very high. This can be seen from the composition of global ownership of green sukuk in this issuance, which is dominated by investors from overseas residential.
"This sukuk has also succeeded in attracting many global investors, this is evidenced by the value of their investment reaching 57 percent of our total issuance," he said.
To note, green sukuk or green sukuk are the first sharia State Securities (SBN) in the world that puts forward the concept of financing programs for environmentally friendly projects.
The move to release environmental and sharia-based debt instruments is in line with the commitment to reduce greenhouse gas emissions as mandated by the Paris Agreement in 2016 which was ratified by Indonesia.
Based on the APBN Kita report released by the Ministry of Finance, until the end of May 2021, the government's debt was recorded at Rp. 6,418.15 trillion. This figure increased by Rp1,159.58 trillion compared to the same period the previous year of Rp5,258.57 trillion.
"The issuance of green sukuk shows the enormous potential and collaboration of the public sector and the private sector, especially in financing development and in order to address global emission issues," closed the Minister of Finance Sri Mulyani.
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