President Jokowi Hopes Jakarta Can Be Center of International Sharia Economy

President Jokowi delivers his remarks at the gathering with stakeholders of sharia finance at State Palace, Jakarta, Friday (23/12). (Photo by: Public Relations Division: Jay)

President Joko ‘Jokowi’ Widodo said although Indonesia is currently one of the leading waqf (Islamic endowment)-based sukuk (Islamic bond) issuers in the world, the development of sharia economy in the country is still very low, which is less than 5 percent.

Development of sharia economy Malaysia, for example, is already above 30 percent and Indonesia is also still left behind from the United Kingdom and South Korea in the development of sharia economy.

For the record, as of 30 November 2016 the issuance of Indonesia’s sukuk in the international market has reached US$10.15 billion with outstanding worth US49.5 billion.

“Therefore, we will continue catching up with this,” President Jokowi said during a gathering with stakeholders of sharia finance in the 8^th commemoration of sukuk at the State Palace on Friday (23/12).

As a country with the largest Muslim population in the world, President Jokowi considers that Indonesian capital Jakarta can be made a center of international sharia finance in the world due to the market potentials and strength that Indonesia has.

Nevertheless, sharia economy, President Jokowi said, is not only about sharia finance, sharia banks, sharia insurance, but also sharia tourism, halal restaurants, and others.

“We should pay attention to the development of sharia economy because it will give a trigger to the country’s economic growth,” the President said, adding that the success of sukuk is not only about funds that have been collected but from the benefits that it brings.

According to him, in 2015 and 2016 Rp20.8 trillion from sukuk was to finance a number of beneficial projects for the people.

“Funds for the construction of railways, bridges, roads, infrastructures of Islamic universities, and other public facilities are taken from sukuk worth Rp20.8 trillion,” the President said.

On that occasion, President Jokowi extended gratitude and participation of all stakeholders for their participation in developing and promoting sukuk.

The President also hopes that in the future, they can continue cooperating with the Government to continue developing and promoting sukuk.

President Jokowi also believes that with the cooperation, sukuk will play a greater role to bring prosperity for the Indonesian people.

Also attending the gathering were Coordinating Minister for the Economy Darmin Nasution, Finance Minister Sri Mulyani Indrawati, Minister of Religious Affairs Lukman Hakim Saifuddin, Chairman of the Financial Services Authority (OJK) Muliaman Hadad, and Chairman of the Indonesian Ulema Council (MUI) KH. Ma’ruf Amin. (RMI/JAY/ES)  (EP/YM/Naster)