CONSTRAINTS AND STRATEGIES OF ISSUING MUNICIPAL SUKUK IN INDONESIA
DOI:
https://doi.org/10.31958/imara.v6i1.5658Keywords:
Islamic municipal bonds, strategy, constraint, ANP.Abstract
The purpose of this paper is to analyze the potential of Islamic municipal bonds in Indonesia focused on its constraint and strategy using Analytic Network Process (ANP). Methodology proceeded by literature research to construct a model and in-depth interview with practitioners and regulators both on government and sharia perspective to fully understand and develop an appropriate ANP Network. The experts are divided into two categories as direct relation and non-direct relation experts. The constraints are divided into five nodes, they are political risk, trust between stakeholders, lack of sharia knowledge, law constraint and risk of municipal loan. While the strategies contain of building trust, sharia education, comprehensive law basis, market strategy, and strategy of product innovation. Islamic municipal bonds may be developed by implementing comprehensive law basis as primary strategy to provide the need of law basis as main constraint. Both main constraint and strategy are agreed by all experts except BPK which is more concern in risk of municipal loan.References
Angeline N (2013). Feasibility Analysis of Municipal Bond Issuance with SWOT Analysis and Debt Service Coverage Ratio (DSCR): Case Study of Jakarta Provincial Government. Undergraduate Dissertation. Faculty of Economy. University of Indonesia
Ayub, M. (2007). Understanding Islamic Finance. England: John Wiley & Sonds Ltd
Aziz IJ (2003). Analytic Network Process with Feedback Influence: A New Approach to Impact Study. Paper for Seminar Organized by Department of Urban and Regional Planning, University of Illinois at Urbana Campaign.
Endri (2009). Permasalahan Pengembangan Sukuk Korporasi di Indonesia Menggunakan Metode Analytical Network Process (ANP). Jurnal Keuangan dan Perbankan, 13: 359 – 372
Frank J. Fabozzi. (2004). Bond Markets, Analysis and Strategies. Fifth Edition. International Edition. Person Prentice Hall.
Gunawan (2013). Influence Factors of Local Governments Readiness; case study in Special Region of Yogyakarta to issue Municipal Bonds. Thesis, Department of accounting science. Gadjah Mada University.
Indriani A (29 may 2013). Citing Internet source URL http://www.bppk.depkeu.go.id/webpkn/attachments/782_Kenapa%20Obligasi%20Daerah%20Menarik%20Untuk%20Diterbitkan%20-%20Agni%20-%20OK.pdf
Naveed M. (26 July 2014) Citing Internet source URL https://www.sukuk.com/education/important-differences-sukuk-traditional-bonds-2207/
Nazara S. (2016). Fiscal Policy for Infrastructure Development and Financial Inclusion: The Experience of Indonesia. 1st Annual Islamic Finance Conference. Ministry of Finance, Directorate Fiscal Policy, Republic of Indonesia.
Perry VF and Rehman SS (2011). Globalization of Islamic Finance: Myth or Reality?. International Journal of Humanities and Social Sciece. 19 (1): 107-119.
Saaty, TL (2009). Theory and Applications of The Analytic Network Process: Decision Making with Benefits, Opportunities, Costs, and Risks. University of Pittsburgh
Sanjay B, Krishna G, Ashok T. Zilong W (2013). Constraints and Prospects of Financing via Municipal Bonds In India (an Analysis with Case Studies). Working Paper. CPR-INC-INF-2012-CPP-35037
Shodiq M (2 December 2014) Citing Internet source URL http://www.thejakartapost.com/news/2014/12/02/municipal-bond-an-alternative-boosting-infrastructure.html.
Stimpfle, A. (2011). Islamic Finance made in Germany: The 2004 Sukuk Issue by the State of Saxony-Anhalt. IE Business School, Madrid
Tasdemir M (2015). Municipal Sukuk Potential Infrastructure Funding. in OJK International Conference on Islamic Finance. Report by the World Bank Global Islamic Finance Development Center.
[Kemendagri] Ministry of Home Affairs (2 may 2016) Citing Internet source URL http://keuda.kemendagri.go.id/datin/index/1/2014.
[Kemenkeu] Ministry of Finance. (1 september 2016) Citing Internet source URL http://www.kemenkeu.go.id/sukuktabungan
Ayub, M. (2007). Understanding Islamic Finance. England: John Wiley & Sonds Ltd
Aziz IJ (2003). Analytic Network Process with Feedback Influence: A New Approach to Impact Study. Paper for Seminar Organized by Department of Urban and Regional Planning, University of Illinois at Urbana Campaign.
Endri (2009). Permasalahan Pengembangan Sukuk Korporasi di Indonesia Menggunakan Metode Analytical Network Process (ANP). Jurnal Keuangan dan Perbankan, 13: 359 – 372
Frank J. Fabozzi. (2004). Bond Markets, Analysis and Strategies. Fifth Edition. International Edition. Person Prentice Hall.
Gunawan (2013). Influence Factors of Local Governments Readiness; case study in Special Region of Yogyakarta to issue Municipal Bonds. Thesis, Department of accounting science. Gadjah Mada University.
Indriani A (29 may 2013). Citing Internet source URL http://www.bppk.depkeu.go.id/webpkn/attachments/782_Kenapa%20Obligasi%20Daerah%20Menarik%20Untuk%20Diterbitkan%20-%20Agni%20-%20OK.pdf
Naveed M. (26 July 2014) Citing Internet source URL https://www.sukuk.com/education/important-differences-sukuk-traditional-bonds-2207/
Nazara S. (2016). Fiscal Policy for Infrastructure Development and Financial Inclusion: The Experience of Indonesia. 1st Annual Islamic Finance Conference. Ministry of Finance, Directorate Fiscal Policy, Republic of Indonesia.
Perry VF and Rehman SS (2011). Globalization of Islamic Finance: Myth or Reality?. International Journal of Humanities and Social Sciece. 19 (1): 107-119.
Saaty, TL (2009). Theory and Applications of The Analytic Network Process: Decision Making with Benefits, Opportunities, Costs, and Risks. University of Pittsburgh
Sanjay B, Krishna G, Ashok T. Zilong W (2013). Constraints and Prospects of Financing via Municipal Bonds In India (an Analysis with Case Studies). Working Paper. CPR-INC-INF-2012-CPP-35037
Shodiq M (2 December 2014) Citing Internet source URL http://www.thejakartapost.com/news/2014/12/02/municipal-bond-an-alternative-boosting-infrastructure.html.
Stimpfle, A. (2011). Islamic Finance made in Germany: The 2004 Sukuk Issue by the State of Saxony-Anhalt. IE Business School, Madrid
Tasdemir M (2015). Municipal Sukuk Potential Infrastructure Funding. in OJK International Conference on Islamic Finance. Report by the World Bank Global Islamic Finance Development Center.
[Kemendagri] Ministry of Home Affairs (2 may 2016) Citing Internet source URL http://keuda.kemendagri.go.id/datin/index/1/2014.
[Kemenkeu] Ministry of Finance. (1 september 2016) Citing Internet source URL http://www.kemenkeu.go.id/sukuktabungan
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Published
2022-06-15
How to Cite
Hamzah, M. M., Baga, L. M., & Saptono, I. T. (2022). CONSTRAINTS AND STRATEGIES OF ISSUING MUNICIPAL SUKUK IN INDONESIA. Imara: Jurnal Riset Ekonomi Islam, 6(1), 26–38. https://doi.org/10.31958/imara.v6i1.5658
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