ROLE OF ISLAMIC FINANCE Muhammad Cholifihani Director of Di of - - PowerPoint PPT Presentation

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ROLE OF ISLAMIC FINANCE Muhammad Cholifihani Director of Di of - - PowerPoint PPT Presentation

Dec 07, 2022 355 likes •510 views

REPUBLIK INDONESIA 4 TH ANNUAL SYMPOSIUM ON ISLAMIC FINANCE SUSTAINABLE FINANCE FOR POVERTY ALLEVATION; THE ROLE OF ISLAMIC FINANCE Muhammad Cholifihani Director of Di of Fin inancial Ser ervic ices And State Owned ed Enter

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REPUBLIK INDONESIA

4TH ANNUAL SYMPOSIUM ON ISLAMIC FINANCE

“SUSTAINABLE FINANCE FOR POVERTY ALLEVATION; THE

ROLE OF ISLAMIC FINANCE”

Di Director of

  • f Fin

inancial Ser ervic ices And State Owned ed Enter erprises, Min inis istry ry of

  • f Nati

tional l De Developmen ent t Pla lanning (B (BAPPENAS) Kuala Lu Lumpur, , 11 Ja January 2018

Muhammad Cholifihani

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REPUBLIK INDONESIA

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INDONESIA’S NATIONAL DEVELOPMENT PLANNING

NATIONAL MEDIUM-TERM DEVELOPMENT PLAN 2015-2019

"The Realization of a Sovereign and Independent Indonesia with Personality based on Mutual Cooperation" Sustainable Environment Economic Growth Social Development Governance for Inclusive, Participative, and Transparent Development

Source: National Middle-Term Development Plan 2015-2019

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REPUBLIK INDONESIA

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INDONESIAN GOVERNMENT WORK PLAN 2019

Main Topic

Equitable Development for Quality Growth

Government Work Plan 2019

Priority Plan

  • Human development through

poverty alleviation

  • Reducing regional disparities
  • Strengthening economic

added value and creating jobs

  • Food energy security
  • Security and stability

Indonesia’s government plan has aligned with Sustainable Development Goals

Source: Government Work Plan , 2019 (processed)

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The signing of the Presidential Decree No.

  • .

59/2 59/2017 on SDGs implementation was an initial direction on SDGs, including:

  • 1. Optimizing the role of Ministry of

National Development Planning/Bappenas.

  • 2. Involving all stakeholders:
  • Government & Parliament,
  • Philanthrophy & Business,
  • Civil Society Organizations,
  • Academics & Expert.
  • 3. Institutional arrangement for SDGs.

PRESIDENTIAL DECREE ON SUSTAINABLE DEVELOPMENT GOALS

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INDONESIA’S COMMITMENT FOR SDGS

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Achieving all the targets of SDGs will require the role of

  • ther Ministries/Agencies and Media Organizations,

Philanthropy and Entrepreneurs as well as Academics and Experts to formulate action plans SDGs in national level. The formulating process has embraced the principle of inclusiveness by involving all parties and also emphasized the principles of partnership among stakeholders with trust, a partnership of equals, transparent, participatory, and accountable.

Source: Sustainable Development Goals –Bappenas 2018

Ministry of National Development Planning Indonesia plays as coordinator in formulating National Action Plan on SDGs / Rencana Aksi (Renaksi)

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SUSTAINABLE DEVELOPMENT GOALS (1)

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THE PILLARS OF SOCIAL DEVELOPMENT

THE PILLARS OF ECONOMIC DEVELOPMENT THE PILLAR OF ENVIRONMENTAL DEVELOPMENT THE PILLARS OF THE CONSTRUCTION OF LAW AND GOVERNANCE

Ind Indonesia ia is one of the leading countries in the Asia Pacific region who is struggling to take one step further in realizing these goals.

Source: Sustainable Development Goals – Bappenas 2018

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SUSTAINABLE DEVELOPMENT GOALS (2)

In accordance with National Long-Term Development Plan (RPJPN 2005-2025), the problem

  • f

poverty is captured within multidimensional framework

  • f

poverty, includes: i) The vulnerability and insecurity of society ii) The lack of fulfilment/fundamental rights of citizens and distinction of treatment on person

  • r groups in order to living a life in dignity.

Source: Sustainable Development Goals Bappenas

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ROLE OF ISLAMIC FINANCE FOR SDGs

  • Emphasiz

ize tangib ibil ilit ity of f fin financia ial l system

  • Su

Supports th the part rtnership ip and equit ity fin financin ing

  • St

Stim imula lates profit fit and lo loss ss sh sharin ing system

  • Ensures so

socia ial l resp sponsib ibil ilit ity and stabil ilit ity in investment Th The feature of f Isla Islamic ic fin finance can potentia iall lly reduce poverty, generate an in inequali lity and enhance the su sustain inabilit ility growth.

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ZAKAT FOR SUSTAINABLE DEVELOPMENT GOALS

Zakat has supported the construction of Micro Hydro Power Plant (PLTMH) to provide electricity for a total of 806 households from 4 villages in Jambi province, benefiting approximately 8,000 people.

Zakat Fund for Micro Hydro Power Plant (PLTMH) in Jambi 2519 Villages all over Indonesia have no access to electricity

Empowered Villages based on Zakat, Infaq & Sadaqah have been established and located in 1056 villages across Indonesia. The number beneficiaries in 2017 reached almost 2 million people. Empowered Village Program

Source: Ministry of Energy and Mineral Resource; United Nation Development Program

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Productive waqf land for VIP rooms, was a pilot project on productive waqf from grants. In less than 7 years, it has reached BEP (break event point). ISLAMIC HOSPITAL OF MALANG AGRICULTURE 1550 1550 Jab Jabon trees was planted on a waqf land of 2.5 ha in Bogor,

  • Indonesia. The benefits of the

harvest reaches Rp7 Rp750 mill illion per 6 years. Land waqf for rental flats building for low-income communities in Bojonegoro RENTAL FLATS FOR LOW-INCOME PEOPLE TOWER 165, JAKARTA A commercial building built over mortmain properties under waqf. The waqf money was collected by YWBNB, managed by PT. Graha 165. In 2015, YWBNB’s ownership of the company’s shares reached 26.766 shares, with a value of around Rp Rp31 bill billio ion. YWBNB (Yayasan Wakaf Bangun Nurani Bangsa) generally earns income from: 1) the waqf cash amount to Rp Rp 48 48 bill billio ion, which was distributed to purchase shares of PT. Graha 165, worth Rp31 billion and purchase all units on the 5th floor of the Tower 165 worth Rp 14,9 billion, 2) dividends which an average of Rp 0,7 billion.

WAQF FOR SUSTAINABLE DEVELOPMENT GOALS

Source: Ministry of Religion; Indonesian Waqf Board (processed)

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SU SUKUK DE DEVELOPMENT IN IN THE LA LAST 5 5 YEARS

  • Dou

Double trac rack ra rail il

  • Dou

Double le trac track ra rail il

  • Haj

Hajj Dor Dormit itor

  • rie

ies

  • Ra

Rail ilroa

  • ads
  • Road
  • ads and

and Bri Bridges

  • Infr

nfrastructure for for High Higher Edu Education and and Re Relig igio ious Aff Affair airs Off Offic ice 2013 2013

  • Ra

Rail ilroa

  • ads
  • Road
  • ads and

and Bri Bridges

  • Infr

nfrastructure for for High Higher Edu Educatio ion and and Re Relig igio ious Aff Affair airs Rp Rp 800 800 Bi Billi lion

  • n

2014 2014 Rp Rp 1,5 Tri Trillion 2015 2015 Rp Rp 7,1 Tri Trillio lion 2016 2016 Rp Rp 13,67 Tri Trillio ion 2017 2017 Rp Rp 16,77 Tri Trillio ion

  • Elevated & Double Trackrail
  • Roads, flyover/overpass/tunnel

& bridges

  • Flood control, lava,

management of urban drainage & coastal security, dams management & other water container building, raw water supply &management

  • Building, facilities & education

facilities

  • Revitalization & development of

Hajj Dormitory, construction/ rehab Center for Marriage & rituals of Hajj

Si Since 20 2013 13, Project Su Sukuk has as contrib ibuted for Su Sustain inable le De Development Go Goals ls

Source : Ministry of Finance (Processed)

SUKUK FOR SUSTAINABLE DEVELOPMENT GOALS

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SUSTAINABLE FINANCE FOR SUSTAINABLE DEVELOPMENT

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Source: On the Sustainable Development Goals and the Role of Islamic Finance, Mohieldin et al, 2015

IS ISLAMIC FINANCE

FIN INANCIAL STABILITY FIN INANCIAL IN INCLUSION SOCIAL IM IMPACT IN INFRA DEVELOPMENT

Isla Islamic ic fin finance takes an im important role le as s su sustain inable le fin inance to su support su sustain inable le develo lopment objec jectiv ives

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REPUBLIK INDONESIA

Thank You

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