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Jakarta Post

Islamic finance and alliance for SDGs

PREMIUM
Jakarta   /   Fri, July 26, 2019   /  01:08 pm
Islamic finance and alliance for SDGs Indonesia Waqf Board (BWI) foreign division chief Muhammad Luthfi (center) talking about waqf (Islamic endowments) during a press conference held at the Fourth Indonesia Sharia Economic Festival 2017 in Surabaya, East Java. (JP/Arief Suhardiman)

As the world faces a gap of trillions of dollars in Sustainable Development Goals (SDGs)-financing, policymakers have been seeking to develop and combine new financing mechanisms that can help achieve the goals. As one country that strongly supports the 2030 Development Agenda, Indonesia has been actively developing innovative finance for the SDGs and its emerging economy offers the perfect landscape for the alliance of two powerful instruments: Islamic finance and impact investing. Impact investing is generally defined as investments made into companies, organizations and funds with the intention to generate positive social and environmental impact, on top of financial return. Its emphasis on bringing positive impact is in a similar vein as some of the sharia principle values of Islamic finance; life and wealth. The other key shared principle is to pursue the inclusion of the p...

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