Blockchain-Based Property Sukuk Models for the Indonesian Market

The Indonesian property sector has experienced significant growth, with a remarkable 54% annual increase in property prices and a 9% rise in real estate companies' profits over the past decade, driven by rapid urbanisation and robust economic development. This growth underscores the need for innovative and transparent financing solutions. This study investigates the potential integration of blockchain technology into a sukuk model tailored for Indonesia's property market. Sukuk, which comply with Sharia principles, offer asset ownership opportunities and could significantly benefit from blockchain technology by enhancing ownership certainty, streamlining transactions, enabling real-time monitoring, and reducing both costs and associated risks. Despite the promising synergies, the application of blockchain in Indonesian sukuk remains largely unexplored. The research methodology involves qualitative interviews with industry experts and simulations to thoroughly examine the sukuk processes, identify potential challenges, and evaluate the benefits that blockchain can offer. Anticipated outcomes include greater market efficiency and enhanced transparency; however, challenges such as regulatory hurdles and issues related to technology adoption may arise. The study proposes a collaborative framework involving Islamic financial institutions, property developers, and blockchain experts to develop a robust and effective sukuk model. This research is pioneering in its approach and aims to provide transformative insights into how blockchain could revolutionize sukuk financing in Indonesia's rapidly expanding property sector.