The Ministry of Finance of Indonesia is a driving force behind the country’s rapid growth and innovation in Islamic finance, positioning Indonesia as one of the world’s leading markets in this sector. The Ministry is responsible for policy development, regulatory oversight, and the issuance of Shariah-compliant financial instruments that support both national development and the expansion of the Islamic financial industry.

A cornerstone of the Ministry’s Islamic finance strategy is the regular issuance of government sukuk (Islamic bonds), which serve as key funding tools for state budgets and infrastructure projects. These sukuk are offered in various forms, including retail sukuk, savings sukuk, and waqf-linked sukuk, making Shariah-compliant investment accessible to both institutional and retail investors. Notably, Indonesia was the first country to issue green sukuk to finance environmentally sustainable projects, and it has also pioneered Cash Waqf Linked Sukuk to support social programs and community empowerment.

The Ministry has played a central role in developing robust legal and regulatory frameworks for Islamic finance in collaboration with the National Sharia Board (DSN), the Financial Services Authority (OJK), and other stakeholders. This includes the drafting of the country’s first sukuk legislation and the integration of Shariah principles into mainstream fiscal policy, ensuring that public financial management aligns with Islamic economic values and supports inclusive, sustainable growth.

Through these efforts, Indonesia’s Islamic finance sector has seen double-digit growth, with sharia-compliant financing expected to expand by 10–12% in 2024. The Ministry’s initiatives have also contributed to Indonesia’s top global ranking in the Islamic economy and have deepened financial inclusion by offering a wide range of Shariah-compliant products and digital financial services.

In summary, the Ministry of Finance of Indonesia is a regional and global leader in Islamic finance, leveraging innovative sukuk structures, strong regulatory frameworks, and a commitment to sustainable development to foster a vibrant and inclusive Shariah-compliant financial ecosystem.