An Exploratory Study of Sukuk Utilisation for Transportation Infrastructure Development in Indonesia

Abstract

Investment in infrastructure is one of the principa l drivers of the growth of the economy. For that r eason, the Indonesian government has proposed an investment bu dget in the railway and sea and air transport secto rs over the next 10 years. In order to overcome the burden of direc t outflows and for the future, a study was conducte d to lay down the framework of Shariah-compliant payments for the dev elopment of infrastructure in Indonesia in the tran sport sector. This paper aims to explore the opportunity and impl ementation of sukuk utilisation to develop transportation infrastructure. Secondary data study and interviews were selected for the basic research method. This study presents the practice of sukuk implementation in transportation projects. Six tra nsportation projects are also described to gain ins ight of the utilisation shariah-compliant financing sche me.