A delegation from the Islamic Development Bank Institute (IsDBI) (www.IsDBInstitute.org) held separate meetings with four major public institutions in Indonesia to strengthen partnerships in various areas of mutual interest.

The meetings with the Financial Services Authority (OJK), PT Sarana Multi Infrastructure, Bank Indonesia, and Nusantara Capital City Authority, were part of the Institute’s series of engagements in Indonesia that included participation in the 10^th Indonesia Sharia Economic Festival (ISEF) held in Jakarta from 25-29 October 2023.

The IsDBI team comprised Dr. Sami Al-Suwailem, the Acting Director General, and Dr. Hylmun Izhar, a Senior Economist.

OJK Chairman, Mr. Mahendra Siregar, hosted the IsDBI team on 24 October 2023 at the OJK headquarters for discussions focusing on the Islamic finance ecosystem.

The meeting highlighted IsDBI’s Sukuk Development Program (SDP), which aims to enhance the role of sukuk in supporting development in IsDB Member Countries. The program focuses on three main components, namely Sukuk Enhancement Fund (SEF), Sovereign Finance Corporation (SFC), and Cash Waqf Linked Sukuk (CWLS).

Boosting Development Financing

At PT Sarana Multi Infrastructure (SMI) headquarters in Jakarta, the President Director, Mr. Edwin Syahruzad, welcomed the IsDBI team on 24 October 2023 to discuss development financing using Islamic instruments.

The SMI, a ‘special mission vehicle’ under the Indonesian Ministry of Finance, is engaged in development and infrastructure financing. Among other functions, it serves as the activator in fostering social, economic, and environmental growth in Indonesia through various financial development services.

Dr. Sami Al-Suwailem expressed the Institute’s commitment to working with PT SMI to enhance its capacity to mobilize resources and support local governments. This includes providing technical assistance to strengthen PT SMI's capacity, expertise, and knowledge in Islamic finance and Shariah-compliant financing instruments.

Digital Platform for Social Finance

On the sidelines of the ISEF on Wednesday, 25 October 2023, the team had a meeting with H.E. Dr. Perry Warjiyo, Governor of Bank Indonesia, to explore potential areas of collaboration.

Dr. Warjiyo proposed the development of a nationwide Integrated Digital Platform for ZISWAF (Zakat, Infaq, and Awqaf) for inclusive and sustainable development for Indonesia. It was agreed that teams from the two institutions would work closely to prepare an action plan to realize this goal.

Indonesia’s New Capital City

On 27 October 2023, Dr. Bambang Susantono, Chairman of IKN, welcomed the IsDBI team to the Nusantara Capital City Authority (Otorita Ibu Kota Nusantara, IKN), the agency responsible for the future capital of Indonesia.

Dr. Susantono expressed Nusantara’s ambitions to be a sustainable forest city and smart city that would deliver enhanced productivity and quality of life. He said IsDBI has a considerable role to play as a partner to IKN in building Nusantara as a livable and lovable city.

Dr. Sami Al-Suwailem reaffirmed the Institute’s keenness to contribute to realizing IKN’s goals, which align with the IsDBI commitment to addressing development challenges in IsDB member countries.

He highlighted the importance of tapping into social finance and mainstreaming it with capital markets to mobilize resources for the Nusantara project. To this end, a potential launch of awqaf-linked strategic initiative and series of workshops on sukuk, e-commerce and SMEs, and awqaf were identified as the next steps.