Indonesia has a huge opportunity to optimize the Islamic financial market
Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati spoke of the government having issued green Islamic bonds reaching US$3.5 billion during the period from 2018 to 2021 to finance efforts to tackle climate change.

"The issuance of this Sukuk (Islamic bonds) is intended to finance efforts to address the threat of climate change and uncertainty in the global market," Sri Mulyani stated at the AICIF 2021 event in Jakarta, Wednesday.

Sri Mulyani spoke of the government having issued green Islamic bonds amounting to US$700 million in the first semester of 2021.

The minister revealed that Indonesia had a huge opportunity to optimize the Islamic financial market.

Indonesia also becomes a major contributor to the issuance of Sukuk in the international market, with its market share reaching 23.11 percent of the total global issuance of US$23.65 billion.

The Indonesian government has finally moved quickly to seize this huge opportunity through developing more variants of Islamic bonds, such as cash waqf-linked Sukuk (CWLS), including green Sukuk.

"Indonesia has a huge opportunity to optimize the Islamic financial market," she noted.

In addition, Sri Mulyani stated that Indonesia had a sharia-based finance body Baitul Mal Wat Tanwil (BMT), reaching 4,500 BMT, aimed at helping communities, especially those in rural areas, to have access to microfinance.

"In assessing microfinance, the BMT can play a leading role for micro and small and medium enterprises, so that they can conduct economic activities after the pandemic," she explained.

Vice President Amin earlier encouraged the Islamic-based financial industry to promote a sustainable economy, with its swift growth in the global financial sector.

"Islamic finance is one of the fastest growing industries, where one of its pillars is trust and cooperation," Amin stated at the 5th International Conference on Law and Justice (ICLJ) themed "Sharia, Law and Sustainability in the New Normal" broadcast on Wednesday.

Amin deems trust and cooperation as the ethical foundation that has been the basic principle of human relations based on Islamic values.

The term sustainability refers to the business model, environment management, and state resilience that required sustainable efforts.

Sustainability is also related to the Sustainable Development Goals (SDGs) as an effort to eradicate global poverty, build a dignified life for all, encourage partnership, empower people, and ensure peace, Amin remarked.

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Translator: Astrid F, Azis Kurmala
Editor: Sri Haryati
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