IsDB chief in Jakarta: A US$2.56 billion plan with a missing climate pillar

Dr. Muhammad Al Jasser, chairman of the Islamic Development Bank (IsDB), recently visited Jakarta to unveil a significant five-year development plan. This plan, valued at approximately US$2.56 billion, aims to fund essential infrastructure projects in Indonesia, a nation heavily impacted by climate change. However, the absence of a dedicated climate pillar in the plan raises concerns about its effectiveness in addressing environmental challenges.

During his visit from October 7 to 10, 2026, Al Jasser emphasized the importance of Islamic finance in supporting development initiatives across Muslim-majority countries. The IsDB, which operates under Islamic finance principles, focuses on projects that align with the needs of its member countries. The partnership strategy for 2026 to 2030 was officially launched by Indonesia's Finance Minister Suahasil Nazara on October 8, highlighting the collaborative efforts between the bank and the Indonesian government.

The lack of a climate component in such a substantial financial plan could hinder Indonesia's ability to combat climate change effectively. Stakeholders are now calling for the integration of sustainable practices to ensure that the development initiatives are both economically viable and environmentally responsible.