Diversification of Islamic Financial Instruments
60
Sukuk structure due to some reasons such as the requirement for underlying assets is
relatively varied which can be real assets, project based asset or services. In addition, the
Sukuk that is structured using ijarah or mudarabah contract can be traded in secondary
market and hence preferred by investors.
Table 27: Structure of Indonesian Sovereign Sukuk (SBSN/Surat Berharga Syariah Nasional)
Ijarah Sale and Lease
Back
Ijarah al-Khadamat Ijarah Asset to be
Leased
Classification on
AAOIFI Shariah
Standards 17
Certificates of
ownership in leased
assets (3/1)
Certificates of
ownership of described
future services (3/2/4)
Certificates of
ownership of assets
to be leased (3/1)
Underlying Asset State-Owned Assets Hajj Services Infrastructure
Projects
Coupon Fixed rate Fixed rate Fixed rate
Tradability Tradable Non- Tradable Tradable
Series of Sovereign
Sukuk
IFR, SNI, SR, SPN-S SDHI PBS, SR
Source: Indonesia Stock Exchange 2016
The Sukuk market in Indonesia is dominated by sovereign Sukuk. The corporate sector seems
to have little interest in the issue of Sukuk, perhaps due to the complexities in Sukuk issuance
and their risk preferences. There are two main factors that are possibly contributing to this
phenomenon, namely the limitation in liquidity as secondary market is not that developed in
Indonesian capital market, and the behaviour of investors that prefer to hold the Sukuk to
maturity (especially the long-term investor such as Takaful companies, pension funds, and
others).
This phenomenon should be noted by the Indonesian authority in Islamic capital market, to
solve the problem of liquidity and secondary market trading to attract the corporate sectors to
issue Sukuk and hence the supply of the Sukuk in the market can be increasing.
It seems that in doing diversification of Shariah contracts (‘aqd), the Sukuk issuers are very
concerned with the preference of the investors. So far, Sukuk based on Ijarah and Mudarabah
are preferred by Indonesian investors. Nevertheless, moving forward various types of
contracts based on Murabahah, Salam, Istisna’, Musharakah, Wakalah bi al-Istihmar, and others
can be used in structuring Sukuk as in other jurisdictions to attract investors (including
international investors) without relying too much on Ijarah or Mudarabah as in the present
scenario. In addition, the Sukuk structure such as in the form of perpetual Sukuk, exchangeable
and convertible Sukuk which can be found in other jurisdictions, are also not common in
Indonesian Islamic capital market. Those structures could be considered to diversify
Indonesian Sukuk market.
40 Ijarah Al-Khadamat is a contract used in Sukuk using services as underlying asset. In this case, the underlying asset is Hajj
services. In this regard, Sukuk is categorized as certificates of ownership of describe future services as can be referred to
AAOIFI Sharia Standards Nomor 17 (3/2/4).
41 Ijarah Asset to be Leased (ijarah Milkiyyah al-Maujudat Al-Mau’ud Bisti’jariha) is defined as a contract whereby the ijarah
object has been specified and some of its objects are already in existence when the contract is signed, but the delivery of
total ijarah object will be done in the future as agreed as can be referred to AAOIFI Scxhariah Standards Nomor 17 (3/1).