The Evolution And Impact Of Sukuk In Indonesia: A Systematic Literature Review And Future Research Agenda

Sukuk, or Islamic bonds, have emerged as a significant financial instrument in Indonesia, the world's most populous Muslim country. This systematic literature review aims to analyze the evolution and impact of sukuk in Indonesia from 2012 to 2024. Using the PRISMA methodology, 25 relevant studies were identified and analyzed. The review results show a rapid growth in sukuk issuance, driven by government support and increasing demand for sharia-compliant financial instruments. Four main themes emerge from the analysis: (1) sukuk as an alternative financing tool for infrastructure development, (2) factors affecting sukuk ratings and yields, (3) comparison between sukuk and conventional bonds, and (4) challenges in developing the sukuk market. The findings show the potential of sukuk in supporting sustainable economic growth in Indonesia, especially through innovations such as green sukuk and Sukuk Waqf. However, challenges such as lack of market understanding and the need for a stronger regulatory framework remain. The review also identifies gaps in the literature and proposes a future research agenda, including long-term impact studies, cross-country comparative analysis, and exploration of fintech applications in sukuk issuance and trading. This research provides valuable insights for policymakers, industry practitioners, and academics interested in the development of the sukuk market in Indonesia and its potential for economic development