The government, through the Finance Ministry, recently offered retail sukuk (sharia-compliant debt paper) to the public to raise funds to help plug a gap in the state budget.
The issuance of government sukuk, which was started in 2008, not only allows the government to have more financing options to solve budgeting problems, but also gives an opportunity for Indonesian people to participate in development projects.
Sukuk are often referred to as “Islamic bonds” and are widely known in the global market. From 2008 to 2017, the Indonesian government issued retail sukuk to tap into the country’s growing middle class.
The retail sukuk has received a positive response from individual investors since it was first introduced in the country. With a competitive rate of return, the issuance of the retail sukuk has been always oversubscribed.
In 2017, Indonesian re...