Corporate green Sukuk issuance for sustainable financing in Indonesia

  • Received August 26, 2022;
    Accepted October 3, 2022;
    Published October 7, 2022
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/ee.13(1).2022.04
  • Article Info
    Volume 13 2022, Issue #1, pp. 38-49
  • TO CITE АНОТАЦІЯ
  • Cited by
    7 articles
  • 874 Views
  • 518 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

Green Sukuk is a source of financing that supports the SDGs. Climate change, the growth of the Islamic finance industry, and the rise of socially responsible investing could make green Sukuk a vital tool for financing clean energy and sustainable infrastructure projects. Many studies have identified its potential and advantages. However, no companies have issued green corporate Sukuk in Indonesia yet. The purpose of this study is to determine the potential and main problems of issuing corporate green Sukuk in Indonesia, along with possible solutions and strategies. The research method used is the analytic network process (ANP). In this study, respondents are experts in the field of green Sukuk (involved experts were from academia, project actors, and regulators). The results of the study indicate that the first destination that has the potential to be financed with green corporate Sukuk is renewable energy. At the same time, the main problem is the lack of understanding from market participants. In terms of solutions, the incentive provided by the government is the best to encourage the issuance of green corporate Sukuk. Moreover, the first strategy is to issue green corporate Sukuk with ijarah contracts. From the research results, it is hoped that the Indonesian government can be more aggressive in providing incentives to green project actors.
view full abstract hide full abstract
    • Figure A1. ANP feedback: Network potential for issuing green corporate Sukuk in Indonesia
    • Table 1. Factors and criteria for issuance of corporate green Sukuk in Indonesia for sustainable financing
    • Table 2. Super decision processing results
    • Table 3. P-value of the rater agreement
    • Conceptualization
      Endri Endri, Amir Ma’ruf
    • Formal Analysis
      Endri Endri, Bella Tahya Hania
    • Funding acquisition
      Endri Endri, Bella Tahya Hania
    • Investigation
      Endri Endri, Bella Tahya Hania
    • Methodology
      Endri Endri, Bella Tahya Hania, Amir Ma’ruf
    • Supervision
      Endri Endri
    • Validation
      Endri Endri, Bella Tahya Hania
    • Writing – review & editing
      Endri Endri
    • Resources
      Bella Tahya Hania, Amir Ma’ruf
    • Software
      Bella Tahya Hania, Amir Ma’ruf
    • Visualization
      Bella Tahya Hania, Amir Ma’ruf
    • Writing – original draft
      Bella Tahya Hania, Amir Ma’ruf
    • Data curation
      Amir Ma’ruf
    • Project administration
      Amir Ma’ruf