JAKARTA: Indonesia is ramping up financing for new President Joko Widodo’s US$439 billion (RM1.52 trillion) development programme, planning an almost fivefold increase in sales of project sukuk.
The government is seeking to raise 7.14 trillion rupiah (RM196 billion) from notes that will fund construction ventures next year, compared with 1.5 trillion rupiah this year, said Suminto, Islamic financing director at the debt management office, here, recently.
That will help finance its estimated spending of about 5,519 trillion rupiah from next year to 2019 to build roads, railways and power plants.
Indonesia is diversifying its sukuk to help boost syariah-compliant banking assets as a share of the total from 4.7 per cent, less than a fifth of Malaysia’s. Bloomberg