OJK: We Have a Shot at Leading IDB's Sharia Infrastructure Bank  

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  • TEMPO.CO, Palangkaraya - Muliaman D. Hadad, board of commissioners' chairman of the Financial Services Authority (OJK), said Indonesia has the opportunity to lead the Islamic Infrastructure Investment Bank (IIIB) which will be established by the Islamic Development Bank (IDB). Indonesia is likely to be a strong candidate as a Muslim country with the largest population in the world.

    Hadad said the IDB is considering between Indonesia and Turkey to lead the bank. "But the IDB considers Indonesia as a strong candidate due to our market," he said in Palangkaraya, yesterday.

    The Finance Ministry has prepared an equity participation in the establishment of the sharia infrastructure bank. The decision is in line with Indonesia's target of becoming the axis of the global Islamic financial industry and the government's plan to push for higher infrastructure financing.

    In October last year, China initiated the formation of the Asian Infrastructure Investment Bank (AIIB) to finance infrastructure development in the region. Almost all Asian countries have become a member as of April 2015. The sharia infrastructure bank will serve as an alternative for financing in addition to the AIIB.