REPUBLIKA.CO.ID, JAKARTA -- Deputy Minister of Finance (Wamenkeu) of RI II Thomas Djiwandono highlighted the increasing importance of the role of sharia finance in the face of global economic uncertainty. He pointed out that the world economy is projected to grow at a stagnant rate of only 2.6 percent in 2024 and is expected to increase slightly to 2.7 percent in 2025-2026. This is a challenge for developing countries, especially those affected by geopolitical fragmentation, inequality, and climate change.
According to Thomas, sharia finance offers a relevant solution to deal with the situation. With its principles of justice, equality, and good governance, sharia finance has the potential to help create global economic stability. Moreover, the system based on Islamic teachings rejects exploitative practices, such as usury.
“Sharia finance supports social welfare and promotes inclusive and equitable development,” Thomas said at an event titled “Islamic Public Finance Role and Optimization” in Jakarta, recently.
Indonesia, as the world's largest Muslim-majority country, has made significant progress to integrate Sharia finance into its fiscal policy. Thomas also noted the great achievement of RI in 2018 as the first country to issue Green Sukuk.
“Indonesia demonstrated its commitment to sustainable development through the issuance of the Green Sukuk, an important step in supporting the global green agenda,” he said.
In addition, Indonesia has introduced innovative instruments such as Cash Waqf Linked Sukuk. It directs public as well as private contributions in financing social infrastructure projects.
In order to achieve its ambition to become a high-income country by 2045, Indonesia needs strong support from the sharia public finance sector. RI also supports interstate collaborations and partnerships with international institutions, such as the Islamic Development Bank (IDB), which are instrumental in advancing global sharia finance.
By continuing to strengthen the sharia financial sector and maintain economic stability, Indonesia is expected to be able to achieve its vision of becoming one of the world's major economic powers. RI is not only economically prosperous, but also fair and inclusive for all its citizens.
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