Indonesia will continue issue green Sukuk 2019
- Islamic Finance
- 3 months ago
Indonesian government is considering issuing Bond with Syariah basis for green project, or green sukuk, due to positive response from the market in 2018 when the government initially issuing the green sukuk. According to Sri Mulyani, Indonesia’s Minister of Finance, in one of the discussions in IMF-WBG annual meeting in Bali, investors are interested in green sukuk due to diversification of portfolio reason. She also added that she is optimistic about Indonesia’s chance on attracting investor to invest on its green sukuk. However, the government is yet to decide how much green sukuk that they are going to issue since they have not finalized the budget for 2019.
In Addition, Emma Sri Martini, President Director of PT Sarana Multi Infrastruktur (SMI), said that the company is interested in issuing green sukuk but they have not found the underlaying project that correspond investors’ desire. At the end they chose to issue green bond valued at IDR 500 billion.
Indonesia is listed as pioneer in green bond issuance in the Southeast Asia region through the issuance of US $ 3 billion in green sukuk in March 2018, which consists of global green sukuk worth US $ 1.25 billion and global regular sukuk worth US $ 1.75 billion. The market response to the issuance of green sukuk turned out to be positive.
Source : Warta Ekonomi and summarized by Jafril Khalil, PhD