Indonesia’s advancement of Islamic Finance is transformative: IsDB

Jakarta (ANTARA) – Indonesia’s advancement and prioritization of Islamic Finance, including the recently launched National Islamic Finance Committee, locally called KNKS, is transformative, Islamic Development Bank (IsDB) official noted in a statement received by Antara here, Thursday.

“We, at the IsDB, are pleased to support Indonesia’s roadmap to have a larger share of Islamic Finance and Islamic Economy,” Director General of Country Relations and Services Dr. Walid Abdelwahab remarked at the Annual Islamic Finance Conference (AIFC) being held in Surabaya, East Java, on July 24-25, 2019.

Abdelwahab further added that the IsDB group supports the implementation of this Indonesia Islamic Economic Master plan, through a collaborative approach, and in partnership with bilateral and multilateral development financing institutions, the private sector, and civil society.

Abdelwahab, representing IsDB’s President Dr. Bandar Hajjar at the conference, also highlighted that the principles of Islamic Finance and Impact Investing are mutually compatible.

“Blending the resources of Islamic Finance and Impact Investing can mobilize additional sources of finance for sustainable development and increase the social, environmental, and financial impact of investments through enhanced coordination, thereby, accelerating progress towards realizing the 2030 Agenda,” he pointed out.

The IsDB president recently outlined his vision for a new global development model, in which he highlighted the importance of a strong financial services industry, led by Islamic Finance, to unlock activities across value chains.

Hajjar reiterated that through the Indonesian government’s numerous actions taken recently, coupled with a strong political will, he was confident of the Islamic Finance industry recording growth and evolving into a strong and sustainable sector while continuing to maintain several of its unique products and services.

The IsDB is transitioning from being a development bank to a bank for developers, wherein the bank aims to serve as a catalyst for the development process, rather than simply provide financing for development projects.

The bank’s new roadmap under the “IsDB President’s Five Year Program” (P5P) focuses on delivery and adoption of a more dynamic, proactive, and result-oriented approach.

The IsDB’s new business model facilitates it to play the role of a catalyst, focusing resources on building inclusive value chains, fourth-generation industrial transformation through Science, Technology and Innovation and green infrastructure, and building a global resilient network of developers through innovative Islamic finance products and services.

Reporter: Bambang Purwanto

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