Indonesia Scales up Support for IsDB’s Mandate by Increasing Subscribed Share
12 May 2023 – The Board of Governors (BoG) of the Islamic Development Bank (IsDB, the Bank) approved the request of Indonesia to increase its subscription in the Capital Stock of IsDB. The request was approved as part of the proceedings of the 48th Annual Meeting of IsDB Board of Governors held in Jeddah, Kingdom of Saudi Arabia, under the patronage of The Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud.
The Special Capital Increase (SCI) allows Indonesia to gain a permanent seat on the Bank’s Board of Executive Directors (BED). The SCI would increase the number of permanent BED seat holders to 10. The SCI further expands the capital base of the Bank, supports the implementation of the Realigned Strategy 2023-2025 and beyond, and serves as a symbol of strong shareholder support.
IsDB and Indonesia have a longstanding historic relationship that continues to build upon the dynamic and exponentially growing cooperation between the larger IsDB Group and Indonesia that is currently driven by the recently launched 2022-2025 Member Country Partnership Strategy (MCPS), which is oriented towards providing solution-centric and programmatic developmental solutions, in full harmony with the National Development Plan, as encapsulated in the 2020-2024 Medium Term Strategy (RPJMN) and Vision 2045 of Indonesia. To date, IsDB Group’s total financing to Indonesia stands at around US$ 6.3 billion that spans various priority sectors of the country’s economy, in both the public and private sector.
Welcoming the approval, IsDB President H.E. Dr. Muhammad Al Jasser stated, “The Special Capital Increase strengthens the historic partnership between IsDB and the Republic of Indonesia for promoting sustainable socio-economic development, including the key areas of climate action and building food security and resilience in the Bank’s 57 Member Countries. This will enable us to work together ever so closely towards the sustainable development agenda around the world. This is a strong show of support of an important Member Country, and the Bank is very grateful to the Government of the Republic of Indonesia, especially the Minister of Finance of Indonesia and IsDB Governor, H.E. Dr. Sri Mulyani Indrawati for her leadership in this effort and reinforcing Indonesia’s support for IsDB.”
On the momentous occasion, H.E. Dr. Sri Mulyani Indrawati remarked, “We would like to express our sincere gratitude to the IsDB Board of Governors for approving our capital increase request. As the largest Muslim country and with our extensive experience in dealing with the global priority agenda, Indonesia is fully committed to working closely with IsDB to make a positive and long-lasting impact on the Muslim Ummah and the global community at large. The world, and Muslims in particular, need to rebuild better and stronger, and this partnership between Indonesia and IsDB will continue to build solidarity and coordinate efforts towards that purpose, insya Allah”.