Indonesia's infrastructure projects built with sukuk funds would increase in the next year. The reason the use of the funds was not simply expect blessing, but also a part of the Government's strategy for managing financing and infrastructure development.
The Ministry of Finance (Kemenkeu) said the issuance of Islamic Based Government Securities (SBSN) next year range from Rp 118.5 trillion – Rp 135.42 trillion. That amount equals 14%-16% of the total issuance of SBN (Government Securities) next year Rp 846.4 trillion. This year, the realization of issuance both SBSN rupiah and foreign currency denomination reached Rp 81.13 trillion.
The goal of increased issuance of SBSN not only to patch the deficits on the Indonesian Budget 2018 of 2.19% against Gross Domestic Product (GDP), but the Government also wanted to multiply projects funded by SBSN.
Director of the Directorate General of Sharia Financing and Risk Management Kemenkeu Suminto explains, SBSN will fund 587 projects in 2018. The project spread across 34 provinces with a budget value of Rp 22.53 trillion.
The great potential market
The value of the project next year up compared this year's that only Rp 16.76 trillion, consisting of 590 projects. "The number of Ministries/Government Agencies (K/L) who proposed the project rises to 7 K/L," said Suminto in Forum of Policy the Leadership Echelon 1 Unit K/L of Financing Infrastructure Projects Through SBSN in Jakarta, Friday (22/12).
In this year, the initiator of the project-based sukuk are just the Ministry of Transportation (Kemhub), the Ministry of Public Works and Housing (PUPR), as well as Ministry of Religious Affairs (Kemnag).
The project consists of 15 railways infrastructure projects in Directorate General of Railways worth Rp 7.54 trillion; 88 infrastructure projects of roads and bridges in the Directorate-General of Bina Marga Ministry PUPR worth Rp 4.69 trillion; 188 infrastructure projects of flood control, lava, and management of dams.
Then, the main urban drainage management project at the Directorate General of Water Resources Ministry PUPR worth Rp 2.73 trillion. Financing of eleven projects Hajj embarkation in Ditjen Hajj and Umrah Management Kemnag worth Rp 424 billion, 32 project development facility and facilities of the College of Islamic Religious buildings in Islamic Education Ditjen Kemnag worth Rp 1.05 trillion, and 256 projects the construction and rehabilitation of Marriage Hall and Hajj Rituals in the Islamic Community Guidance Ditjen Kemnag worth of Rp 315 billion.
The Director General of Risk and Financing Management Kemenkeu, Alfirman asserted, issuance SBSN is an alternative funding source for the Indonesian Budget. The Government will continue to enlarge SBSN issuance in order to divide the risks, while simultaneously supporting the development of syariah-based financial industry. The potential market of SBSN in Indonesia is very large, because there are funds of the Hajj more than Rp 100 trillion that must be invested in order not eroded by inflation.
Source: Kontan
