Proceedings of the 3rd International Conference on Economics, Business and Economic Education Science, ICE-BEES 2020, 22-23 July 2020, Semarang, Indonesia

Research Article

Evaluation of Implementing Sukuk for Infrastructure Financing in Indonesia Using the Analytic Network Process

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  • @INPROCEEDINGS{10.4108/eai.22-7-2020.2307872,
        author={Syifa  Fauziah and Nurwahidin  Nurwahidin and Nurul  Huda},
        title={Evaluation of Implementing Sukuk for Infrastructure Financing in Indonesia Using the Analytic Network Process},
        proceedings={Proceedings of the 3rd International Conference on Economics, Business and Economic Education Science, ICE-BEES 2020, 22-23 July 2020, Semarang, Indonesia},
        publisher={EAI},
        proceedings_a={ICE-BEES},
        year={2021},
        month={5},
        keywords={sukuk infrastructure financing islamic finance anp},
        doi={10.4108/eai.22-7-2020.2307872}
    }
    
  • Syifa Fauziah
    Nurwahidin Nurwahidin
    Nurul Huda
    Year: 2021
    Evaluation of Implementing Sukuk for Infrastructure Financing in Indonesia Using the Analytic Network Process
    ICE-BEES
    EAI
    DOI: 10.4108/eai.22-7-2020.2307872
Syifa Fauziah1,*, Nurwahidin Nurwahidin1, Nurul Huda2
  • 1: Universitas Indonesia, Indonesia
  • 2: Universitas YARSI, Indonesia
*Contact email: syifafauzi25@gmail.com

Abstract

The Indonesian government has used sukuk to finance infrastructure since 2013. However, the issuance of sukuk for infrastructure financing is still low compared to the total value of available underlying assets because of many problems and barriers. This study aims to identify priority problems, solutions and strategies in the implementation of sukuk for infrastructure financing from the obligor perspective. The research uses analytic network process method. The results show that the priority of the problem is the low maximum limit for the issuance of sukuk for infrastructure, market risk, the realization of sukuk issuance for infrastructure is still low, the low sukuk market share compared to bonds, monitoring and evaluation of the use of funds is not optimal. The priority of the solution is to push to complete the project on time so that the burden of costs does not increase, increase the maximum limit for issuance of sukuk, increase the issuance of sukuk for infrastructure investment, optimize monitoring and evaluation of the use of funds, open up broad opportunities for foreign investors. The priority strategies are Synergy, innovation, and the use of IT.