The IsDB Group demonstrated its full committment to supporting the Government of Indonesia in achieveing the SDGs, by co-organising and participating in the Annual Islamic Finance Conference (AIFC) with the Government of Indonesia. The Annual Islamic Finance Conference (AIFC) is an important opportunity to showcase the Islamic Finance and Economic platforms that can achieve the SDGs through Impact Investing.
Islamic Finance and Impact Investing is one of the key pillars of the IsDB’s strategy to support the sustainable development of its member countries. As such, the Bank welcomes Indonesia’s adoption of Impact Investing as one of the main programs in its Sharia Economic and Financial Masterplan.
This year, His Excellency Dr. Bandar Hajjar, President of the IsDB was represented by the Director General of Country Relations and Services Dr. Walid Abdelwahab who delivered a keynote speech at the conference.
Dr. Walid Abdelwahab said: “Indonesia’s advancement and prioritization of Islamic Finance, including the recently launched National Islamic Finance Committee (KNKS) is indeed transformative. We, at the IsDB, are pleased to support Indonesia’s roadmap to have a larger share of Islamic Finance and Islamic Economy”. He further added that the “IsDB group supports the implementation of this Indonesia Islamic Economic Masterplan, through a collaborative approach, and in partnership with bilateral and multilateral development financing institutions, the private sector and civil society.”
Dr. Walid also highlighted the principles of Islamic Finance and Impact Investing are mutually compatible. He added that “blending the resources of Islamic Finance and Impact Investing can mobilize additional sources of finance for sustainable development, increase the social, environmental and financial impact of investments through increased coordination, and thereby accelerate progress towards the 2030 Agenda.”
The President of the Islamic Development Bank Group recently set out his vision for a new global development model, in which he explains that a strong financial services industry, led by Islamic Finance, is critical to unlock activities across value chains. HE Dr. Bandar Hajjar conveyed that with the numerous actions taken by the Government of Indonesia recently, and with a strong political will, he was confident the Islamic Finance industry will grow into a strong and sustainable sector, while still maintaining many of its unique products and services.
The IsDB is moving from being a development bank to a bank for developers, whereby the Bank aims to act as a catalyst for the development process, rather than simply providing financing for development projects. The Bank’s new roadmap under the “IsDB President’s Five Year Program” (P5P) focuses on delivery and adoption of a more dynamic, proactive and result-oriented approach. The IsDB’s new business model enables it to play the role of a catalyst, focusing resources on building inclusive value chains, fourth generation industrial transformation through Science, Technology and Innovation and green infrastructure, and building a global resilient network of developers through innovative Islamic finance products and services.