Abstract
In Islamic finance, Sukuk instruments are similar to the bond market in conventional finance and are intended to increase long-term investment capital. However, according to Sharia, Sukuk means there is no uncertainty (Garar), interest (usury) and gambling (Maisir).This is also new in the financial market in Islamic Bank. The government uses Sukuk as an instrument for financing the state budget, and Sukuk financing has contributed to the development and financing of state projects. The amount of Sukuk issuance volume is influenced by external factors such as macroeconomic conditions and internal factors, namely prices and yields of Sukuk. The problem is whether inflation, exchange rates, Sukuk prices and returns affect the volume of Sukuk issuance. Therefore, this research aims to determine the effect of macroeconomic variables (inflation and exchange rates), Sukuk prices and Sukuk yields on the volume of Retail Sukuk issuance in Indonesia, using the Vector Error Correction Model (VECM) research model and the assistance of econometrics EViews 9. The data used in this study are time-series data from April 2015 to March 2018, with a research sample of Retail Sukuk with the latest maturity in March 2018, namely Retail Sukuk SR-007 series. The results of the study show that the inflation and price variables have a long-term significant influence on the volume of Retail Sukuk SR-007 issuance and only yield variables that do not influence both the long- and short-term, while the exchange rate variable has significant long- and short-term effects.
Highlights
Since the World Bank (2008) stated that Islamic finance has grown exponentially and outperformed conventional financial instruments, many varieties of Sukuk have been offered in Indonesia
The issue of the independent variable of this research discusses the increasing volume of Retail Sukuk issuance (SR) – where SR is a type of Sukuk issued by the state that can be purchased by any Indonesian citizen through a selling agent – that has a value of Rp 2.64 trillion (14%), where the yield given is 0.5% smaller and the number of investors is less than that of the SR-006
This study aimed to determine the effects of inflation, exchange rates, Sukuk prices and yields on the volume of Retail Sukuk SR-007 issuance
Summary
Since the World Bank (2008) stated that Islamic finance has grown exponentially and outperformed conventional financial instruments, many varieties of Sukuk have been offered in Indonesia. This issue of that Islamic finance has grown was later linked to the number of Indonesian Muslims, totalling 231 million but not yet growing rapidly (Pew Research, 2018). One of the impacts of government regulation is that the development of Islamic finance has reached a market share of 8.47% of Indonesia's total financial assets (Otoritas Jasa Keuangan, 2018). The issue of the independent variable of this research discusses the increasing volume of Retail Sukuk issuance (SR) – where SR is a type of Sukuk issued by the state that can be purchased by any Indonesian citizen through a selling agent – that has a value of Rp 2.64 trillion (14%), where the yield given is 0.5% smaller and the number of investors is less than that of the SR-006
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