News - 10 October 2018

Indonesia introduces Green Sukuk at IMF-World Bank Annual Meetings

Antara/ Veri Sanovri

Indonesia has introduced Green Sukuk, an Islamic bond used for financing environmentally friendly projects, at the ongoing International Monetary Fund-World Bank Annual Meetings in Nusa Dua, Bali.

Finance Minister Sri Mulyani Indrawati expressed confidence that the financing scheme, which is based on Islamic teachings, would have a significant role in contributing to sustainable development.

“Our challenge is how to carry out development that is in line with sustainable principles,” the minister said in a seminar titled “Green Finance for Sustainable Development" at Nusa Dua Hotel, Bali, on Tuesday. The seminar is part of the IMF-World Bank Annual Meetings, which run from Oct. 8 to 12.

Sri Mulyani, who was speaking at the seminar with World Bank vice president and treasurer Arunma Oteh, also discussed cooperation between governments and private companies to boost economic growth without sacrificing the environment.

She revealed that, in March, the Indonesian government issued Green Sukuk as an instrument to collect US$1.25 billion in funds to finance environmentally friendly projects.

Meanwhile, Oteh said she supported Sri Mulyani’s statement and stressed the Green Sukuk financing scheme was promising for green projects.

“The world is now focusing on projects that are based on sustainability. If governments have full commitment to protect the environment, many international investors would come to invest,” Oteh said, adding that, therefore, the emergence of Green Sukuk could be an alternative financing scheme for green projects. (bbn

Source: The Jakarta Post