Diversification of Islamic Financial Instruments
58
Despite the headway made in issuing Sukuk, the size of Indonesia’s corporate Sukuk market is
relatively small compared with the sovereign Sukuk. Outstanding corporate Sukuk reached
IDR11.748 billion at end-2016. The following table presents corporate Sukuk outstanding at
end-2016.
Table 24: Total Corporate Sukuk Issuance and Corporate Sukuk Outstanding 2002 -2016
Year Sukuk Issuance Sukuk Outstanding
Total Value
(in IDR Billion)
Number of
Sukuk Issuance
Total Value
(in IDR Billion)
Number of
Sukuk
Outstanding
2002 175 1 175 1
2003 740 6 740 6
2004 1,424.00 13 1,394.00 13
2005 2,009.00 16 1,979.40 16
2006 2,282.00 17 2,179.40 17
2007 3,174.00 21 3,029.40 20
2008 5,498.00 29 4,958.40 24
2009 7,015.00 43 5,621.40 30
2010 7,815.00 47 6,121.00 32
2011 7,915.40 48 5,876.00 31
2012 9,790.40 54 6,883.00 32
2013 11,994.40 64 7,553 36
2014 12,956.40 71 7,105 35
2015 16,114.00 87 9,902 47
2016 20,425.40 100 11,748 52
Source: OJK Islamic Capital Market Statistic January 2017
Sovereign Sukuk, however, only commenced in 2008, after the enactment of Indonesian Act No
19 (year 2008) on National Shariah Securities Law (Undang-Undang Surat Berharga Syariah
Negara/SBSN). This allowed the government to issue Islamic securities (Sukuk) as a new
source of funding for financing the government’s budget deficit. The sovereign Sukuk is not
only for financing the government budget deficit ( general financing), but also for project
financing of infrastructure building. In addition, the sovereign Sukuk in Indonesia is also used
as liquidity management instrument for Islamic finance industry and investors in Islamic
finance.
Currently, Indonesian Sukuk market is dominated by sovereign Sukuk. Total sovereign Sukuk
issuance in 2016 has reached 48 issuances with value IDR 565.74 billion, and Sukuk
outstanding about IDR 413.84 billlion with CAGR about 32.20% in the last five years. The
following table summarizes the issuance of Indonesian sovereign Sukuk in all its forms since
2009 – 2014.