JAKARTA The Board of Governors of Islamic Development Bank (Islamic Development Bank/IsDB) approved Indonesia to become the third shareholder in IsDB through a special capital increase mechanism (Special Capital Increase).
Minister of Finance (Menkeu) Sri Mulyani who was present at the IsDB Annual Session stated that Indonesia's contribution as shareholders gave the opportunity to place representatives on the Board of Directors permanently.
"This is proof that Indonesia is in line with the IsDB to improve the ability of member countries to withstand the impact of the crisis and help realize sustainable long-term development goals," he said in a press release from the Ministry of Finance today, Wednesday, May 17.
The Minister of Finance explained that this commitment further reinforces Indonesia's influence in the international arena after previously successfully leading the Group of 20 (G20) over the past year. The state treasurer conveyed a number of important achievements in Indonesia at the G20, such as strengthening the global health system, accelerating energy transitions, and digital transformation.
"In the field of strengthening the global health system, G20 leaders have supported the formation of a Pandemic Fund which aims to provide financing to middle and low income countries to strengthen capacity in prevention, preparedness, and response to the pandemic. Until May 2023, the Pandemic Fund has obtained a financial commitment of US$1.6 billion from 24 donors," he said.
On this occasion, the Minister of Finance also held a bilateral meeting with IsDB President Muhammad Al Jasser and expressed his appreciation for his support for the Special Capital Increase (SCI) Indonesia to IsDB.
It was stated that the two parties discussed IsDB's support for the food crisis and climate change issues, the issue of South-South Cooperation through mixed financing with PT SMI, as well as the procurement of supply chains for the needs of Hajj and Umrah.
Indonesia merupakan salah satu negara pendiri IsDB dan telah menjadi anggota sejak 12 Agustus 1974. Dalam sidang tahunan ini, Indonesia naik peringkat dari pemegang saham ke-12 menjadi pemegang saham terbesar IsDB ketiga, imbuh dia.
To note, since its establishment until 2022, Indonesia has also received financing benefits for Indonesia up to USD 6.3 billion to support Indonesia's priority development agenda in sectors such as agriculture, education, health, marine and fisheries, industry and mining, including structural reforms and capacity building of human resources.
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