Indonesia Scales up Support for IsDB’s Mandate by Increasing Subscribed Share

Jeddah, Kingdom of Saudi Arabia, 12 May 2023 – The Board of Governors (BoG) of the Islamic Development Bank (IsDB) has approved Indonesia’s request to increase its contribution to the subscribed capital of the Bank. The request was approved as part of the proceedings of the 48th Annual Meeting of the 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 will eventually increase the number of permanent BED seat holders to ten. This is the 6th SCI approved by the IsDB Board of Governors since the Bank commenced operations in 1975. The SCI further expands the capital base of the Bank entailing a wide array of advantages including the enhancement of the institution’s implementation capacity towards its fit-for-purpose Realigned Strategy 2023-2025 as it serves as a symbol of strong shareholder support.

Welcoming the approval, IsDB President and Group Chairman, 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 toward the sustainable development agenda around the world. This is a strong show of support by 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 occasion, H.E. Dr. Sri Mulyani Indrawati, Finance Minister and IsDB Governor for Indonesia stated: "As the country with the largest Muslim population in the world and with a great wealth of experience in dealing with global priority agenda, Indonesia is 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 the Muslims in particular need to rebuild better and stronger, and this partnership between Indonesia and IsDB will continue to build solidarity towards that purpose, Inshallah."

IsDB and Indonesia have a longstanding historic relationship that continues to build upon the dynamic and exponentially growing cooperation between a larger IsDB Group and Indonesia that is currently driven by the recently launched 2022-2025 Member Country Partnership Strategy (MCPS) 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 which spans various priority sectors of the country’s economy, in both public and private sectors.