Indonesia leads global sukuk issuance for women's empowerment and sustainable development

Indonesia continues to solidify its position as a global frontrunner in sustainable finance, building on its pioneering role as the world's first issuer of green sukuk in 2018. The nation is now a leading global issuer of orange bonds and sukuk, with ambitious targets to mobilize $10 billion by 2030. This initiative aims to empower 100 million women and bridge the funding gap for Sustainable Development Goals (SDGs), particularly focusing on Gender Equality and Women's Empowerment.

PT Permodalan Nasional Madani (PNM) has been instrumental, issuing $980 million in Orange Bonds that directly empower millions of women entrepreneurs. The Indonesian Hajj Financial Management Agency (BPKH), managing nearly 200 trillion rupiah ($12 billion USD) in assets with stable returns, plays a strategic role by integrating Orange Sukuk as a core pillar of its sustainable investment strategy. This complements its existing investments in green and blue sukuk.

Orange Sukuk is highlighted for its unique ability to address the intersection of social and environmental impact, areas often overlooked in traditional finance. For BPKH, these sukuk instruments, green, blue, and orange, are not merely investments but integral components of sustainable development contributing to SDGs, including poverty alleviation (SDG 1), gender equality (SDG 5), and decent work (SDG 8). This commitment has earned BPKH accolades, such as the ESG Now Awards 2025 for Sustainable Investment Initiative and ESG Warrior, underscoring its successful management of Hajj funds with a focus on safety, Sharia compliance, and broad impact.

The agency noted that financing provided to women across Indonesia exhibits a remarkably low non-performing financing (NPF) rate, demonstrating that women's economic empowerment is a financially sound and socially beneficial investment. The success of Orange Sukuk integration is seen as a vital step toward realizing the Sovereign Halal Fund (SHAF), a concept designed to consolidate non-state funds from various Islamic institutions. BPKH's transparent and accountable management of Hajj funds, consistently achieving unqualified audit opinions and ISO certifications, serves as a model for managing community wealth productively while adhering to prudent investment principles and the objectives of Sharia.