Increasing its stake in the Islamic Development Bank (IsDB), the Indonesian government is now the third-largest shareholder in the organization after Saudi Arabia and Libya, according to a statement made public on Sunday.

The institution’s board of governors unanimously approved the proposal to increase the Indonesian government’s shares by the board of governors of the organization at the 48th Annual Session of IsDB, which was held in Jeddah, Saudi Arabia, on May 10–13, 2023.

Sri Mulyani Indrawati, the finance minister of Indonesia, said during the IsDB annual meeting, “I hope that by increasing the share, the cooperation between Indonesia and IsDB can improve and bring prosperity to all people.

She added that this move could provide various strategic and economic benefits for Indonesia, including increasing Indonesia’s bargaining position within IsDB and increasing IsDB’s financing potential to Indonesia by 3.5 to 4 times.

“By becoming the third-largest shareholder, Indonesia can assert its contribution to the international community by helping determine the direction of global development through its membership in IsDB as a multilateral development bank.”

Additionally, Indonesia can also actively and directly participate in the operation of IsDB to improve the welfare and help eradicate poverty in IsDB member countries, many of which are low-income Muslim countries.

Furthermore, Indonesia will be able to further encourage IsDB’s involvement in various development programs in the country, including in the Islamic economic and finance sector.

Indrawati stressed that Indonesia is committed to closely collaborate with IsDB to provide long-term positive benefits on Muslims and the international community.

As of December 2022, IsDB had provided US$6.3 billion in financial support for Indonesia, mostly in the agriculture, education, industry, and mining sectors. “Strengthening cooperation, especially in the face of various current global economic challenges, is the goal that will be realized in line with the increase of Indonesia’s role and share in IsDB,” she said.

The Islamic Development Bank is a multilateral development bank (MDB), working to improve the lives of those we serve by promoting social and economic development in Member countries and Muslim communities worldwide, delivering impact at scale. With 57 member countries across four continents, “IsDB is the only multilateral development bank that applies Sharia principles. The institution also promotes South-South cooperation as the majority of its members are developing countries.”

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