THE EFFECT OF MACROECONOMIC FACTORS ON THE NUMBER OF CORPORATE SUKUK OFFERS IN INDONESIA

Haerul Ependi,Hakiman Thamrin Hakiman Thamrin

doi:10.38035/dijefa.v1i4.532

Haerul Ependi, Hakiman Thamrin Hakiman Thamrin

Open Access

https://doi.org/10.38035/dijefa.v1i4.532

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Abstract

This study aims to analyze the effect of macroeconomics factors on corporate sukuk in Indonesia in the short and long term. The independent variable is Inflation, Economics Growth, Total Money Supply, Foreign Exchange Rate and Bank Indonesia (BI) Rate. Whereas the dependent variable is the number of sukuk corporations offered. The results of this study indicate that the Inflation, Economics Growth, Total money supply, and BI Rate have no significant effect on the number of corporate sukuk offered. While Foreign Exchange Rate has significant effect on the amount of corporate sukuk that offered. In the short term period, the total money supply has significant influence on the number of sukuk corporations offered while the rest have no significant effect

Highlights

The first successful Islamic bond issuance was the Government Investment Issues (GII) -formerly known as the Government Investment Certificate (GIC) - conducted by the Malaysian government in 1983
The chart in figure 2 describes that the Bank Indonesia (BI) Rate decrease from the 2014 - 2019
The results of the long-term Vector Error Correction Model (VECM) estimation test show that all macroeconomic variables have no significant effect on corporate sukuk supply in Indonesia

Summary

Introduction

The first successful Islamic bond issuance was the Government Investment Issues (GII) -formerly known as the Government Investment Certificate (GIC) - conducted by the Malaysian government in 1983. The first successful Islamic bond issuance was the Government Investment Issues (GII) -. Again the market for these securities did not develop due to slow innovation and the absence of support from Islamic financial institutions. In 2002, the issuance of world sukuk was recorded at 4.9 billion US dollars. The total developments that occurred until 2007 is US $ 71.5 billion, 14 times increase compared to 2002. There was a drastic decline in global global sukuk issuance which only recorded sales figures of US $ 14.1 billion in 2008. This year sukuk sales were reduced by 54 percent compared to sukuk sales in 2007

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