Scholarship / Career Plan - Sukuk for Infrastructure Development - CHEVENING ESSAY [3]

Dear all, please give some advices on my essay below, thank you:

UK government program in Indonesia

I am now working as an investment banker who helps corporates to earn money from capital market, where it offers some financing alternatives to fund projects either developed by government or private sector. I would like to explore more relationship between infrastructure development and its financing sources from Islamic capital market products such as sukuk. Sukuk features are particularly well-suited to finance infrastructure projects since they have long-term concessions and periodically generate cash flow derived from specific asset. However, sukuk still has low contribution to fund infrastructure projects, only 4% of infrastructure investment target for 2015 to 2019 period, though Indonesia has potential fund such as Hajj fund, waqf and zakat to finance the projects. Sukuk now is globally accepted and has great chance to be utilized, the fund not only comes from domestic and Middle East countries but also from Europe and USA. I believe that UK as the acknowledged hub for Islamic finance among Europe, Middle East and Asia could shape a good cooperation which will benefits each party, especially UK and Indonesia, to maximize their own resources.

My future research and working plan will also be related with UK government program in Indonesia which has been developed by The Cross-Government Prosperity Fund. One of five types of intervention that have been identified is "investment in infrastructure and human capital" that I am eager to be a part of the execution team. In 2017, UK was recorded as top 10 investor countries in Indonesia. The amount of investment realization, both from UK or other countries, continuously raising as well as the increasing of Indonesia's ranking of The Ease of Doing Business (72 of 190) and Human Capital Index (87 of 157). Still, the complicated procedure and low quality of human resources become the main problem caused some potential funds, such as Hajj fund, hard to participate in sukuk issuance. Such a guarantee scheme from government may need to be taken since these are public fund that will be used for Hajj prayer. In addition, a good talent especially in Islamic capital markets may help the government to set a proper procedure for Hajj fund and other Islamic potential fund to be placed in sukuk for infrastructure projects. The UK has been providing Islamic financial services for over 30 years and put efforts to escalate interrelation with Indonesia as one of key Islamic financial markets to help achieve the UK's commercial and foreign policy aims.

After having Master degree, I would like to continue my career as an investment banker in Indonesia and take the Islamic capital markets professional certificate to help the Indonesia government make a right and simple procedure for potential fund to be effectively used in sukuk. As the Chevening alumnus, I will also support the UK's aims to improve investment value focusing on infrastructure development opportunity in Indonesia.