By: Ajeng Mufadillah
Support from economic and Islamic finance is needed for national development through financing and Islamic financial markets. When compared with previous years, the financing contribution and Islamic financial market has increased.
BI Deputy Governor, Erwin Rijanto, said that Islamic finance is not only sourced from syndicated financing of Islamic banking for infrastructure development and social financing of the Hajj fund for the benefit of the people, but also from State Sharia Securities and corporate Sukuk to finance government projects. While from the sharia financial market side, it is realized through sharia hedging and sharia repo transactions which are more actively carried out by Islamic banking.
According to Erwin, the development of the Islamic financial market is indicated, among others, by the increase in the total accumulation of Corporate Sukuk issuance which was previously recorded at Rp. 20.4 trillion in 2016, to Rp. 35.6 trillion in October 2018. While the average transaction in the Islamic money market in 2016 still Rp. 780 billion, but the average January-October 2018 has become Rp. 947 billion.
In addition, syndicated Islamic banking financing has been carried out in several projects, including the Rp 4 trillion electricity project, the Rp 1.3 trillion Pasuruan-Probolinggo toll road project, Pemalang-Batang valued at Rp 400 billion and the distribution of social benefits for the Hajj fund to SMEs worth approximately Rp 50 billion. According to Erwin, this can be realized thanks to the close efforts and cooperation between various parties involving Bank Indonesia, the Financial Services Authority, the Ministry of Finance, the Ministry of Religion and the Hajj Financial Management Agency, as well as sharia financial market players.
To support the financing and Islamic financial market, Bank Indonesia will launch Bank Indonesia Sukuk. This instrument, according to Erwin, aims to add alternative tradable Islamic money market instruments and can be a short-term solution for banking liquidity needs.
On a separate occasion, Rosmaya Hadi launched the Indonesian Creative Sharia Industry (IKRA). This is a holistic sharia business development platform in the fashion, food and beverage sector. Includes capacity development, branding, marketing to bring it together with buyers or global investors. So that Islamic business actors in congregation are able to compete and penetrate the global market.
Islamic economic development can develop rapidly, if the real sector develops well. Not only does it need to encourage Islamic banking, but it also encourages sharia-based activities.