Corporate green Sukuk issuance for sustainable financing in Indonesia

Abstract

Green Sukuk is a source of financing that supports the SDGs. Climate change, the growth of the Islamic finance industry, and the rise of socially responsible investing could make green Sukuk a vital tool for financing clean energy and sustainable infrastructure projects. Many studies have identified its potential and advantages. However, no companies have issued green corporate Sukuk in Indonesia yet. The purpose of this study is to determine the potential and main problems of issuing corporate green Sukuk in Indonesia, along with possible solutions and strategies. The research method used is the analytic network process (ANP). In this study, respondents are experts in the field of green Sukuk (involved experts were from academia, project actors, and regulators). The results of the study indicate that the first destination that has the potential to be financed with green corporate Sukuk is renewable energy. At the same time, the main problem is the lack of understanding from market participants. In terms of solutions, the incentive provided by the government is the best to encourage the issuance of green corporate Sukuk. Moreover, the first strategy is to issue green corporate Sukuk with ijarah contracts. From the research results, it is hoped that the Indonesian government can be more aggressive in providing incentives to green project actors.

The Effect of Dividends and Capital Gains on Underlying Assets in Green Sukuk

“…This research was conducted by Ahmadi with the title The Role of Company Policy in distributing dividends to investors in 2022. The difference between the previous research was discussing company policy in distributing dividends and the research carried out was regarding the underlying assets in dividends and capital gains obtained from managing retail sukuk (Endri et al, 2022).…”

“…There is an influence of investors to invest their funds in green sukuk products because of dividends and capital gains. There are several aspects seen by researchers on green sukuk products published by both private and state companies as follows (Endri et al, 2022;Munir et al, 2020;Grahesti et al, 2022): first look at the performance of income obtained during Five years whether between years has increased whether it has decreased, second looks at the company's ability to manage and distribute third party funds obtained From sukuk products properly and correctly, third, the existence of a profitsharing policy (dividend) affects investors to buy green sukuk products purchased by investors. The higher the dividend distribution, it will affect the sales of green sukuk products and have good value for the company (Endri et al, 2022).…”

The estimate of innovative development of construction industry in the Kazakhstan

“…To achieve the goal of this study, on the basis of a literary and technological review and generalizations of the results of the review, such studies as [4][5][6][7][8][9][10][11] in this paper, the specifics of the current situation in Kazakhstan in the context of industrial and innovative development of the production sectors of the national economy can be characterized by the following features:…”

Green Sukuk Development Strategy in Indonesia: ANP-SWOT Approach

“…It indicates that the proportion of green sukuk is still relatively small. Prior studies have comprehensively discussed green sukuk in several aspects (Abubakar & Handayani, 2020;Endri et al, 2022;Fitrah & Soemitra, 2022;Karina, 2019;Lestari, 2020;Munir et al, 2020;Siswantoro & Surya, 2021). Most of the prior studies emphasize the concept of green sukuk as sustainable financing and its challenges and opportunities.…”