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Jakarta, 25 October, 2021 – The United Nations Development Program (UNDP), the International Islamic University of Indonesia (UIII), and the Islamic Development Bank (IsDB) today launched the Center of Excellence in Islamic Finance for Sustainable Development Goals (SDGs). The launch was made during the sidelines of the 8th Indonesia Sharia Economic Festival (ISEF), organized by the Indonesian Central Bank, Bank Indonesia.
The Center of Excellence, located in UIII in Depok, West Java, will conduct advanced research on scaling up initiatives and exploring new opportunities for the practical application of Islamic finance for the SDGs in various fields.
The event, entitled Decade of Action: Leveraging the Stability and Availability of Islamic Finance for SDGs was attended by Mr. Anies Rasyid Baswedan, Governor of Jakarta, along with Mr. Doddy Zulverdi from Bank Indonesia, Mr. Wempi Saputra from the Ministry of Finance), Mr. Chaider S Bamualim from the UIII, and UNDP Indonesia Resident Representative Mr. Norimasa Shimomura. Mr. Sami Al-Suwailem from the IsDB Institute was also present for the high-level discussion.
“This launch is timely, as we are entering the most important phase of our collective global effort to achieve the SDGs by commencing the Decade of Action. Despite the approaching deadline for achieving the SDGs targets, there have been setbacks to progress due to the pandemic. Therefore, it is hoped that the Center of Excellence in Islamic Finance can contribute to our collective effort in accelerating the SDGs and recoup some of the setbacks,” Mr. Baswedan said during opening remarks.
“Islamic financial industry has demonstrated a stronger resilience based on the experience of the previous global financial crisis. Scholars view Islamic financing as offering lower systemic risk and sustainable financing system that could be more robust and resilient than the commercial financing system,” said Mr. Zulverdi.
“There are striking commonalities between the concept of Islamic finance, and the SDGs, with their shared emphasis on alleviating poverty and hunger and reducing inequality through wealth redistribution,” noted Mr. Shimomura during the high-level discussion.
The high-level discussion was closed by Professor Dian Masyita, Dean of the Faculty of Economics and Business UIII, who noted that Islamic financial instruments complement each other and are inclusive. In the context of achieving the SDGs, Islamic finance can contribute optimally to provide social and environmental impact.
A series of pre-launch events took place, including discussions with stakeholders (represented by the government, private sector, associations, nongovernmental organizations, religious organizations, and academia) and a public seminar on Islamic finance which discussed the relationship between zakat, waqf, microfinance, sukuk, and fintech to achieve the SDGs in Indonesia.
Indonesia, as a country with the largest Muslim population in the world, has the potential to become a global leader for Islamic finance. In 2017’s global halal market totaling USD 2.1 trillion, Indonesia was placed first for the most consumers of the halal industry globally, to which it contributes 10 percent. In addition, the Islamic Finance Development Report 2020 and the Global Islamic Economy Indicator 2020/2021 place Indonesia in second and fourth respectively.
The Center of Excellence will conduct activities such as; (1) developing joint initiatives to channel Islamic finance instruments towards achieving the SDGs; (2) contributing Islamic finance insights on programs and outreach mechanisms; (3) providing support on communications strategies for Islamic finance on SDGs and financial inclusion; (4) training, workshops and conferences to boost the awareness of Islamic finance and SDGs.
For more information, contact:
UNDP Indonesia Communication Specialist, Tomi Soetjipto, suryo.tomi@undp.org
UNDP Indonesia Islamic Finance Specialist, Greget Kalla Buana, greget.buana@undp.org
UNDP is the leading United Nations organization working to end the injustices of poverty, inequality, and climate change. Working with an extensive network of experts and partners in 170 countries, we help countries build integrated and sustainable solutions for people and the planet.
The International Islamic University of Indonesia (UIII) is a new educational institution established under the mandate of Presidential Regulation Number 57 of 2016 concerning the Establishment of UIII as an international standard higher education institution, becoming the leading Islamic higher education model in Islamic studies, social sciences, humanities, and technology. UIII has various research centers with special expertise to address strategic problems and challenges. UIII holds the status of PTN BH (State Higher Education Legal Entity) along with 12 other well-known universities.
The Islamic Development Bank (IsDB) is a multilateral development bank (MDB), working to improve people's lives by promoting social and economic development in Member States and Muslim communities around the world, having an impact on a large scale.
