Indonesia Officially Becomes the 3rd Largest Shareholder of Islamic Development Bank

[Indos]

RI Officially Becomes the 3rd Largest Shareholder of Islamic Development Bank​

Jakarta, CNN Indonesia –
Minister of Finance (Menkeu) Sri Mulyani revealed that Indonesia officially increased its share ownership in the Islamic Development Bank (IsDB) from the 12th position to the 3rd position.


The increase in Special Capital Increase (SCI) puts Indonesian shares in IsDB below Saudi Arabia and Libya with an increase of 8.43 percent.

"This post-SCI will be diluted for all shareholders, so that the final result of Indonesia's shareholding will be 7.94 percent. The IsDB Board of Governors has approved this SCI at the IsDB Annual Meetings on May 12, 2023," Sri Mulyani said through her Instagram account, Sunday (14/5).



According to her, IsDB is a multilateral development bank that has a comparative advantage.

IsDB is not only the only multilateral development bank that applies sharia principles, but the majority of its members are developing countries so that they can participate in promoting South-South Cooperation.

Sri Mulyani said that with this increase in shares, Indonesia will get various benefits, both strategically and economically.

"Starting from increasing Indonesia's bargaining position in the IsDB to increasing the IsDB's financing potential up to 3.5-4 times greater," she added.

In addition, Indonesia can also directly play an active role in the operationalization of the IsDB and contribute to improving welfare and poverty alleviation in IsDB member countries.

IsDB member countries are generally low-income Muslim communities.

On the other hand, Indonesia can also further encourage the role of the IsDB in various development activities in the country, including in the development of Islamic economy and finance.

As of December 2022, IsDB has provided financing support for Indonesia amounting to US$ 6.3 billion.

This assistance is particularly for sectors such as agriculture, education, industry and mining, through various instruments such as project financing, trade finance, and technical assistance.

www.cnnindonesia.com/ekonomi/20230514190257-78-949449/ri-resmi-jadi-pemegang-saham-terbesar-ke-3-islamic-development-bank#:~:text=RI%20Resmi%20Jadi%20P