The Islamic Research and Training Institute (IRTI) and the Financial Education and Training Agency (FETA) of the Indonesian Finance Ministry have jointly organized a training workshop on financing infrastructure projects through public-private partnerships (PPPs).
The workshop is part of IRTI's capacity building programs aimed to develop competence and capacity of executive staff working in financial institutions in IsDB member countries to appreciate the differences between conventional and Islamic principles in infrastructure financing.
The program, held in Jakarta from 22 to 24 October 2018, was organized to support Indonesian authorities to build capacity in the area of PPPs so that the government could better utilize the PPP model as a tool to fill the infrastructure financing gap by efficiently accessing more private capital and expertise.
Director General of FETA, Mr. Harry Mulya, inaugurated the workshop, saying it would help participants to acquire essential knowledge about the PPP model and its importance to infrastructure and services procurement.
Participants of the workshop were from the Ministry of Finance, Indonesian universities, and Islamic Economic Academy TAZKIA. They went through technical and hands-on sessions during the program, which also covered the basic aspects of PPPs, process cycle, and recent applications and challenges in the PPP framework.
Other areas covered in the workshop included types of investments permissible in Islamic finance, sources of funds and types of PPPs depending on the origin of funding, as well as profit sharing and profit-and-loss models in Islamic finance.
In a closing remark, Dr. Pandu Patriadi, FETA's head of planning and development, expressed appreciation to IRTI and IsDB for providing training services to the Indonesian Ministry of Finance, and called for deeper collaboration in the future.