Indonesia Issued IDR 1,810.02 Trillion in Shariah Sovereign Bonds Since 2008: Indonesia’s Finance Minister

The Government of Indonesia has issued Shariah sovereign bonds worth IDR 1,810.02 trillion (USD 124.49 billion) between 2008 and June 2021, according to Sri Mulyani Indrawati, Indonesia’s Finance Minister.

Why it Matters?

Shariah sovereign bonds continue to develop and now serve an increasingly important part in funding government budgets, contributing IDR 360 trillion in 2020 to state budget financing, up from IDR 4.7 trillion in 2008, during the early days of their issuance. Each year, Shariah sovereign bonds contribute 20-30% of government debt securities issuances. These instruments are considered to be very stable, and are trusted by both domestic and foreign investors. Shariah sovereign bonds have also contributed to strengthening the fina...