132
Chart 4.42: Investor Mix for LCY Government Bonds
Source: MOF
To further deepen the domestic investor base, the government has optimised the use of retail
sukuk as a source of financing since 2009. Retail sukuk, which remains significantly untapped
in most countries, increases financial inclusion and can serve as a tool in spreading awareness
on Islamic finance. As at end-June 2017, government retail sukuk accounted for approximately
11.5% of total sovereign sukuk issuance (as shown in Chart 4.43), and has been rising steadily.
Furthermore, the government launched a savings sukuk in 2016, to reach out to lower-income
investors; the sukuk was made available for sale for as low as IDR2.0 million-IDR5.0 million.
This initiative underlines the government’s commitment to product innovation in Islamic
finance and provides investment solutions to lower-income investors, a group which would
otherwise remain largely untapped.
Chart 4.43: Indonesian Retail Sukuk Issuance (2009-June 2017)
0.41
1.05
-
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
2009 2010 2011 2012 2013 2014 2015 2016 June 2017
S
Retail Sukuk Issuance Sovereign Sukuk Issuance
Source: MOF