Indonesia's BPKH launches Orange Sukuk to fund Sovereign Halal Fund

Indonesia has become the world’s leading issuer of orange bonds and orange sukuk, aiming to mobilise up to US$10 billion by 2030. The initiative, driven by PT Permodalan Nasional Madani’s US$980 million orange bonds, is integrated by the Badan Pengelola Keuangan Haji (BPKH) as a core pillar of sustainable finance alongside green and blue sukuk. BPKH, which manages nearly Rp200 trillion in assets with a stable 7 % return, targets the empowerment of 100 million women and the financing of millions of women‑owned micro‑enterprises, supporting Sustainable Development Goals on poverty eradication, gender equality and decent work. Funding to women entrepreneurs has reached roughly Rp3 trillion with an exceptionally low non‑performing loan rate of 0.005 %. The orange sukuk framework underpins the proposed Sovereign Halal Fund (SHAF), a consolidated non‑budget pool that would bring together BPKH, Badan Wakaf Indonesia and Baznas, potentially amounting to several thousand trillion rupiah. BPKH’s sustainable‑investment approach earned it the ESG Now Awards 2025 for Sustainable Investment Initiative and ESG Warrior.