Central bank (Bank Indonesia/BI) plans to issue short-term Sharia bond as a new monetary instrument and to support Islamic financial markets. Several central banks abroad like Malaysia, Bahrain, and Jordan already utilize these instruments for monetary instrument.
Currently, the central bank already own such as are BI Syariah Certificates, Bank Indonesia Syariah Facilities (FASBIS), reverse sharia repo, and Sharia bond repo.
The Sharia bond’ maturity will be two weeks, one month, three months, six months, nine months, and 12 months. Bank Indonesia is still waiting for the regulation legalization, before releasing the instrument.
