AN OVERVIEW OF SUKUK DEVELOPMENT IN INDONESIAN MARKETS: INSIGHTS FROM LITERATURE

Abstract

This paper aims to analyze the progression of sukuk as a sharia-compliant investment instrument in Indonesia through a longitudinal literature review. By analyzing four academic studies published between the post-COVID-19 period and recent years, this research identifies key changes in the function, utilization, and strategic role of sukuk within the national islamic capital market. The findings indicate that sukuk served as a resilient financing tool during the COVID-19 crisis, particularly through the issuance of retail sukuk, savings sukuk, and waqf-based sukuk, which successfully supported government funding needs and enhanced public participation. In the subsequent recovery phase, the role of sukuk expanded through Sovereign Sukuk (SBSN), contributing significantly to infrastructure development, including roads, bridges, educational facilities, and public services.

The literature also shows a shift toward using sukuk to finance research and development infrastructure, demonstrating the government’s commitment to strengthening national innovation capacity. Additionally, forecasting studies predict a continuous upward trend in sukuk investment until 2030, reflecting growing investor confidence and increasing awareness of Sharia-based financial instruments. Overall, sukuk has emerged as a strategic tool that supports economic growth, infrastructure expansion, and progress toward the Sustainable Development Goals (SDGs) in Indonesia.