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MODELLING RETAIL SUKUK IN INDONESIA
| Detail | |
|---|---|
| Author | NEVI DANILA |
| ID | 202.710.123 |
| Published Date | 15-08-2012 |
Abstract
Retail sukuk is developed by ministry for domestic investors in bond market to finance the budget. This paper will examine what factors that affect individual investors to buy retail sukuk. The importance of the study is that the government has a potential muslim investors' basis to finance the budget through domestic market; and the government does not need to have an exchange rate exposure relates to non domestic currency denominated sukuk. The result suggests that the proxy of shari'ah interest rate (mudarabah deposit) and foreign exchange rate, have an impact on sukuk's price. We may suggest that the investors consider a religious factor in making a decision to invest. In addition, regards to foreign exchange rate, we argue that investors might compare dollar to sukuk as an alternative investment. Overall, the government gains to expand its investors' basis to finance the budget.