Corporate Sukuk Issuance Lags Far Behind Conventional Bonds

Based on the Report on the Development of the Sharia Capital Market released by the Financial Services Authority (OJK), the issuance of corporate sukuk in Indonesia has reached Rp 24.28 trillion with a total of 120 sukuk. However, considering the total of 748 securities issued, corporate sukuk only contributes 16.04%. This figure is significantly lower than the issuance of conventional bonds, which reached 83.96% or 628 bonds.

This low figure is due to the issuance of sukuk being considered more complex in terms of requirements compared to conventional bonds. To issue sukuk, issuers must have an underlying asset and a Sharia Expert Team (SET). Furthermore, many issuers still believe that sukuk are illiquid.

Therefore, the Director of the OJK's Sharia Capital Market, Fadilah Kartikasasih, stated that the OJK will encourage sukuk offerings to increase the liquidity of corporate sukuk in the market. The OJK is also encouraging the government and other institutions to increase the issuance of Sharia-based sukuk.

(Read Databoks: [Inilah Kupon Sukuk Ritel Sejak 2009](https://databoks.katadata.co.id/datapublish/2019/03/05/inilah-kupon-sukuk-ritel-sejak-2009))