Makara Journal of Technology

Volume 22 Number 1 Article 8

4-1-2018

An Exploratory Study of Sukuk Utilisation for Transportation

Infrastructure Development in Indonesia
Fiona Lamari
School of Civil Engineering and Built Environment, Science and Engineering Faculty, Queensland University
of Technology, Brisbane, 4000, Australia

Ayomi Dita Rarasati

Civil Engineering Department, Faculty of Engineering, Universitas Indonesia, Depok, 16424, Indonesia,
[email protected]

Meilia Evita
Civil Engineering Department, Faculty of Engineering, Universitas Indonesia, Depok, 16424, Indonesia

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Recommended Citation
Lamari, Fiona; Rarasati, Ayomi Dita; and Evita, Meilia (2018) "An Exploratory Study of Sukuk Utilisation for
Transportation Infrastructure Development in Indonesia," Makara Journal of Technology: Vol. 22 : No. 1 ,
Article 8.
DOI: 10.7454/mst.v22i1.3581
Available at: https://scholarhub.ui.ac.id/mjt/vol22/iss1/8

This Article is brought to you for free and open access by the Universitas Indonesia at UI Scholars Hub. It has been
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 Makara J. Technol. 22/1 (2018), 53-59
doi: 10.7454/mst.v22i1.3581

An Exploratory Study of Sukuk Utilisation for Transportation Infrastructure

Development in Indonesia

Fiona Lamari1, Ayomi Dita Rarasati2*, and Meilia Evita2

1. School of Civil Engineering and Built Environment, Science and Engineering Faculty,
Queensland University of Technology, Brisbane, 4000, Australia
2. Civil Engineering Department, Faculty of Engineering, Universitas Indonesia, Depok, 16424, Indonesia

*
e-mail: [email protected]

Abstract

Investment in infrastructure is one of the principal drivers of the growth of the economy. For that reason, the
Indonesian government has proposed an investment budget in the railway and sea and air transport sectors over the next
10 years. In order to overcome the burden of direct outflows and for the future, a study was conducted to lay down the
framework of Shariah-compliant payments for the development of infrastructure in Indonesia in the transport sector.
This paper aims to explore the opportunity and implementation of sukuk utilisation to develop transportation
infrastructure. Secondary data study and interviews were selected for the basic research method. This study presents the
practice of sukuk implementation in transportation projects. Six transportation projects are also described to gain insight
of the utilisation shariah-compliant financing scheme.

Abstrak

Studi Pemanfaatan Sukuk Untuk Pembangunan Infrastruktur Transportasi di Indonesia. Investasi dalam
infrastruktur adalah salah satu pendorong utama pertumbuhan ekonomi. Oleh karena itu, pemerintah Indonesia telah
mengusulkan anggaran investasi di sektor perkeretaapian dan transportasi laut dan udara selama 10 tahun ke depan.
Untuk mengatasi beban arus kas keluar dan untuk masa depan, sebuah penelitian dilakukan untuk meletakkan kerangka
pembiayaan berbasis syariah untuk pembangunan infrastruktur di Indonesia dalam sektor transportasi. Artikel ini
bertujuan untuk mengeksplorasi peluang dan implementasi pemanfaatan sukuk untuk mengembangkan infrastruktur
transportasi. Analisa data sekunder dan wawancara dipilih sebagai dasar metode penelitian. Penelitian ini menyajikan
praktik implementasi sukuk dalam proyek transportasi. Enam proyek transportasi juga dipaparkan untuk memberikan
wawasan tentang penggunaan skema pembiayaan berbasis syariah.

Keywords: project financing, shariah-compliant financing, sukuk, transportation infrastructure

1. Introduction pushing the government to dig out and exploit all the
available potential for the development of infrastructure,
Weakness in the development of infrastructure has particularly in the field of transportation. One
become a factor causing the backwardness of Indonesia alternative for paying for the infrastructure which has
in spurring the development of the economy on. The been developed is by using a system of shariah-
provision of good infrastructure is the foundation of the compliant payments. It was within the framework of
development of an advanced economy, and then developing sources of paying for the national budget
existence of adequate infrastructure plays a most vital and developing a Shariah-compliant money market that
role in the national economy. This is because the the House of Parliament (DPR) ratified Law No.19 of
advance and growth of the economy in a country is 2008 concerning National Shariah-compliant Financial
inseparable from the provision of such infrastructure as Instruments, of which Article 4 states “National
transportation, communications and the supply of Shariah-compliant Financial Instruments (SBSN) are
energy. The government has become increasingly aware issued for the purpose of funding the national budget
of these facts over recent years, and this has been including funding the development of projects”, and

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54 Lamari, et al.

Article 7 Paragraph (2) states “Within the framework of participation in the division of the assets of the SBSNs,
the issue of SBSN for the payment of projects, the either in Rupiah or in foreign currency. The returns on
Minister shall coordinate with the Minister responsible SBSNs/Sukuk Negara are in the form of compensation,
for the area of national development planning” [1]. This a division of profits, margins and capital gains. An
Law gives the government the authority to issue SBSN SBSN requires underlying assets as the basis for its
to cover the deficit in the National Budget and to pay issue, and requires a fatwa/Shariah opinion guaranteeing
for the construction of projects. The model of that the sukuk accord with Shariah principles [3]. A
fees/division of profits on which this system is based Shariah opinion is a declaration of accordance with
has been proved reliable in confronting the crisis which Shariah, issued by a responsible party with skills in the
occurred around the beginning of 2009. The Shariah field of Shariah law which declares that the sukuk being
system escaped the crisis because of the principles held issued are not contrary to the principles of Shariah law.
consistently, that is the refusal of speculation, gambling Every issuance of Sukuk Negara has received a Shariah
(uncertainty) and interest. Opinion from the National Shariah Council –
Indonesian Islamic Scholars Council (DSN-MUI). A
Investment in infrastructure is one of the principal fatwa is a legal determination issued by a party skilled
drivers of the growth of the economy. For that reason, in the field of Shariah law. The relevant fatwas of the
the Indonesian government has proposed an investment DSN-MUI in relation to the Sukuk Negara are:
budget of $US475 million in the railway and sea and air 1. Fatwa No.69/DSN-MUI/VI/2008 re SBSNs
transport sectors over the next 10 years. In order to 2. Fatwa No.70/DSN-MUI/VI/2008 re Method of
overcome the burden of direct outflows and for the Issuing SBSNs
future, a study was conducted to lay down the 3. Fatwa No.71/DSN-MUI/VI/2008 re Sale and Lease
framework of Shariah-compliant payments for the Back
development of infrastructure in Indonesia in the 4. Fatwa No.72/DSN-MUI/VI/2008 re SBSN Ijarah
transport sector. Schemes of Shariah-compliant Sale and Lease Back
payments have been extensively studied in Muslim 5. Fatwa No.72/DSN-MUI/VI/2008 re SBSN Ijarah
countries and in developed countries. Nevertheless, the Asset to be Leased
making of Shariah-compliant payments is relatively new
in Indonesia, and some study is still needed to examine Legal basis: Issue of SBSNs/Sukuk Negara
the effectiveness of such payments. It is therefore hoped The legal basis for the issue of SBSNs is Law Number
that this study will increase the sources of funds in 19 of 2008 concerning SBSNs, which establishes that
infrastructure projects in Indonesia. the central government has the authority to issue
SBSNs, which is executed by the Minister of Finance.
2. Methods Other regulations supporting the issue of SBSNs are
specified in the Government Regulation (PP) relating to
This paper aims to explore the opportunity and company issuers of SBSNs, and Regulation of the
implementation of sukuk utilisation to develop Minister of Finance (PMK) concerning the Issue of
transportation infrastructure. It is an exploratory study SBSNs on local and overseas markets and the handling
to obtain insight in sukuk as alternative financing for of SBSN assets.
infrastructure projects. The process starts from problem
discovery and definition of the need of additional Objectives of the Issue of SBSNs/Sukuk Negara
financing for infrastructure development and the The objectives of the issue of SBSNs are to fund the
opportunity of sukuk implementation as one of elements National Budget (APBN), including funding
in shariah-compliant financing. Secondary data study construction projects (such as infrastructure projects in
and interviews were selected for the basic research the sectors of energy, telecommunications,
method [2]. Secondary data study was collected from communications, agriculture, manufacturing industry
news and government policies about shariah-compliant and private housing). The reasons for the need for the
financing. Interviews were conducted with the issue of SBSNs are
government officers from Ministry of Transportation. 1. To extend the base of sources of funding for the
Data were analysed based on content analysis and national budget
results were presented in section 3 and 4. 2. To encourage the growth and development of a
Shariah-compliant money market in Indonesia
3. SBSNs in Infrastructure Projects 3. To strengthen and elevate the role of the financial
system based on Shariah law in the country
Understanding SBSNs/Sukuk Negara 4. To create benchmarks for Shariah-compliant
On the basis of Law No. 19 of 2008 and Government financial instruments in the market
Regulation No.56 of 2011, SBSNs or Sukuk Negara 5. Shariah-compliant domestic and international
(National Islamic Bonds) are national instruments finance
issued according to Shariah principles as proof of 6. To extend and diversify the investor base

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 Sukuk Utilisation for Transportation Infrastructure 55

7. To develop alternative investment instruments Provision and or existence of contributions towards

8. To fund the development of infrastructure projects activities whose nature is to dangerously (detrimentally/
9. To optimise the use of state property (BMN) mudharat) damage the moral or environmental character.

Characteristics of SBSNs/Sukuk Negara Series of SBSN

The characteristics of SBSNs/Sukuk Negara are: The following series of SBSNs have been issued in
1. SBSNs are issued by the government or special Indonesia:
purpose vehicles (SPVs) 1. Retail Sukuk Negara (SR) are Sukuk Negara sold
2. They accord with the principles of Shariah specifically to individual Indonesian citizen
3. They are tradable or non-tradable, according to the investors. This series was first issued in 2009. They
type of contract and terms and conditions are tradable with fixed compensation.
4. Fixed coupon or variable coupon 2. Sukuk valas (SNI) are Sukuk Negara issued on the
5. Payment of compensation/reward and the date international civil market, denominated in foreign
guaranteed by Law No.19 of 2008 and budget laws currencies.
6. Payment of compensation/reward is made per month 3. Sukuk Dana Haji Indonesia (SDHI) are Sukuk
or per semester Negara issued specifically for the placement of
7. Instruments will be sold at par, premium or discount, Muslim Pilgrimage funds in Sukuk Negara.
to investors in SBSNs, Shariah-compliant or 4. IFR Series Sukuk are Sukuk Negara issued on the
conventional investors, either individuals or domestic civil market, denominated in Rupiah. This
institutions series was first issued in 2009. They are tradable
8. Instruments will be issued denominated in Rupiah or with fixed compensation.
foreign currency and will be discharged in full at 5. Shariah-compliant Treasury Notes (SPN-S) are
maturity. Sukuk Negara issued for a tenor of less than one
year.
On the basis of Government Regulation No.56 of 2011, 6. Project Based Sukuk (PBS) are Sukuk Negara issued
the following types of project may be funded through using a project as the underlying asset.
the issue of SBSNs [4]:
1. Projects which, in whole or part, are proposed to be Underlying assets in issues of SBSNs
funded through the issue of SBSNs, either projects An underlying asset is an asset which has become the
now under way, or projects which will be subject or basis for the transaction in connection with
undertaken. the issue of a sukuk. The assets which form underlying
2. Projects that have received allocations in a national assets may be physical or non-physical, such as land,
budget whose source of funding originates purely in buildings, various kinds of construction project, together
Rupiah, either projects now under way, or projects with other non-physical assets such as services. The
which will be undertaken. issue of an SBSN requires the existence of an
underlying asset because an SBSN is basically an
The criteria for projects that accord with Shariah instrument reflecting partial ownership of the
principles according to the National Shariah Council asset/benefit/service which is the basis for the issue of
are: the SBSN. The existence of the underlying asset
1. Said projects possessing transparency embracing functions as a real transaction which is the basis for the
planning, execution and completion, and at least issue of the SBSN and is one of the principal aspects
taking in aspects of: which differentiate a bond from a sukuk. Without an
a. Utility of plans underlying asset, the certificates issued would be in the
b. Project construction plans from a cost-benefit nature of debt instruments, because there would be no
perspective (analysis of the benefits of the real transaction providing the basis for the issue of
project) sukuk. The assets which are able to be underlying assets
2. The utility of the Project is not intended to be for SBSNs are SBSN funding objects and State-owned
associated with: Assets (BMN) which possess an economic value, such
a. Provision and or existence of contributions as land and/or buildings, and other than land and/or
towards conventional (usurious/ribawi) financial buildings. Every time it issues an SBSN, the
services government establishes the underlying asset of the
b. Provision and or existence of contributions SBSN through a Decree of the Minister for Finance
towards activities which include any element of concerning the specification of a State-owned Asset
gambling (speculation/maysir) (BMN) as the asset of the SBSN.
c. Provision and or existence of contributions
towards the production, distribution, trade in According to Government Regulation No.25 of 2009
and/or supply of forbidden (haram) goods and concerning Income Tax on Shariah-based Activities, the
services taxation provisions for SBSNs are the same (mutatis

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56 Lamari, et al.

mutandis) as those for National Bonds (SUN). Thus the capital and the other party as the provider of labour and
tax levied on the compensation for long-term SBSNs is skills; the profits from the cooperation are divided
a final Income Tax (PPh) of 15% as regulated by according to a ratio decided on beforehand while any
Government Regulation No.16 of 2009 concerning losses are borne entirely by the provider of the capital
Income Tax on Interest on Bonds. On the other hand, except for losses caused by the provider of labour and
the tax levied on the compensation for short-term skills.
SBSNs is a final Income Tax (PPh) of 20% [5, 6].
3. Musyarakah SBSNs
Scheme for issue of SBSNs These SBSNs are issued on the basis of a musyarakah
According to Law No.19 of 2008, the SBSNs that may contract, that is, a cooperative contract among two or
be issued are [1]: more parties to group together capital, either in the form
of money or in other forms, for the purpose of obtaining
1. Ijarah SBSNs profits, which are divided according to a ratio decided
These SBSNs are issued on the basis of an Ijarah on beforehand, while any losses that arise are borne
contract,that is, a contract in which one party acting for jointly according to the amount of capital participation
itself or through a representative leases the right over an of each party.
asset to another party on the basis of a lease fee and for
a lease period which have been agreed. One Ijarah 4. Istisna SBSNs
scheme is a Sale & Lease Back Ijarah, which represents These SBSNs are issued on the basis of an istisna’
the sale of an asset, which is then leased back by the contract, that is, a contract to buy and sell the assets that
buyer to the seller. The contracts used are a buy/sell are the subject of purchase between parties, where the
contract and a lease contract which are executed specifications, method and date of surrender, and the
separately. The sale of the asset is basically only the price of the asset, are determined by agreement among
sale of the beneficial title, but is not accompanied by a the parties.
physical surrender and transfer of legal title. An outline
of the issue of a sale and lease back contract is 5. SBSNs issued on the basis of other contracts,
described in Figure 1. provided that they are not in conflict with Shariah
principles, and
2. Mudarabah SBSNs
These SBSNs are issued on the basis of a mudarabah 6. SBSNs issued on the basis of combinations of two or
contract, that is, a cooperative contract among two or more of these contractsa.
more parties, in which one party acts as the provider of

Sales of Asset Sukuk

(Beneficial Title) Issuance
Issuance and Coupon

MoF-GOI SPV Investors

(Obligor/ Proceeds (Issuer/ Proceeds
Payment

Originator) Trustee)
Lease of Asset
Secondary Market

Periodic Lease Payment

Paying Agent
Sukuk Redemption
Maturity Date

MoF-GOI SPV
(Obligor/ Sales of Asset (Issuer/ Sukuk Investors
Originator) Trustee)

Figure 1. Outline of Sale and Lease Back Contract [3]

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 Sukuk Utilisation for Transportation Infrastructure 57

4. Development of Infrastructure Projects The method of Shariah funding employed is an ijarah

in the Field of Transportation Based on scheme, using payments of around $US315 million or
around Rp3 trillion per aircraft, so that the total was
Shariah Law in Indonesia Rp6 trillion [8]. The ijarah scheme used for the Boeing
777-300ERs was marketed and sold by Boeing to
The development of infrastructure projects in the field Garuda; Garuda then sold the aircraft to Alafco with the
of transportation based on Shariah law began in promise that Garuda would lease the aircraft back from
Indonesia in 2012. The infrastructure project paid for by Alafco for a certain time (12 years) [9]. Schemes such
Shariah-compliant funding in 2012 was the construction as this are also known as sale and leaseback.
of Stage II of the Medan-Kualanamu-Tebing Tinggi toll
road, using sukuk. In 2013, two projects were paid for This was a pilot project for Shariah-compliant funding
by Shariah-compliant funding: the supply of two Boeing in the area of air transport. According to the President
777-300E aircraft by ijarah and the dual carriageway Director of Garuda Indonesia, the signing of the
Cirebon-Kroya railway by sukuk. In 2014, there were cooperation agreement and the import of the two Boeing
again two projects paid for by Shariah-compliant 777-300ERs was the first time Garuda had employed
funding: the construction of the double track Shariah-compliant methods and formed a guide to the
Manggarai-Cikarang road and the supply of trains by exploration of funding from diverse sources [9]. Apart
sukuk. In addition, a further project paid for by Shariah- from that, this was a first step for Garuda in obtaining
compliant funding is the construction and development funds from the Middle East by Shariah methods. The
of the Belawan container terminal by istisna; at present, Boeing 777-300ERs will service the Jakarta-Jeddah
this is still in the final stage of providing a contractor for route specifically for the umrah (lesser Pilgrimage). The
the civil works. The following depicts the transportation aircraft have a capacity of 314 passengers, configured
infrastructure projects based on Shariah in Indonesia. for eight in first class, 38 in business class and 268 in
economy class [9].
Construction of Stage II of the Medan-Kualanamu-
Tebing Tinggi toll road Project for the construction of dual track Cirebon-
The construction of Stage II of the Medan-Kualanamu- Kroya railway
Tebing Tinggi toll road made use of Shariah-compliant In 2013, the government issued Rp800 billion in project
bonds/sukuk. Stage II of the Medan-Kualanamu-Tebing backed sukuk SBSNs to pay for the project to dual track
Tinggi toll road extends for 60 km. The estimated cost Segment 1 of the Cirebon-Kroya railway [10].
of the project is Rp5.789 trillion. The project is a public- Nevertheless, the actual raising of funds for the project
private partnership (PPP). The government is via sukuk in 2013 only reached Rp777.8 billion. Under
responsible for Rp1.37 trillion of the funding. The funds the national budget for 2014, Segment II of the project
were provided through the 2012 Budget. The balance, to to construct the dual track for the Cirebon-Kroya
be provided by private investors, was Rp4.419 trillion railway will be Rp745 billion, which will be funded by
[7]. According to information from Bappenas, the sukuk [11].
physical start of the project was in September-October
2011. This project for the construction of a dual track on the
Cirebon-Kroya line is the first railway project to be paid
Sukuk based on government infrastructure projects was for with Shariah funds, and is a pilot project for the
a new form of funding for the government. The issue of sukuk to fund infrastructure. Debt is not
government had of course issued sukuk previously, but permitted in Shariah buying and selling. For that reason,
the underlying assets of the transactions were national the assets are the subject of the transaction. In this
assets. For example, the government used the Ministry project, the underlying asset forming the asset is the
of Finance building as the asset in a sale and lease back. dual track. The government as owner of the project will
In the funding of this project, the sukuk investors will receive rent from PT Kereta Api, and this rent will be
invest in a profit-sharing scheme for this project [7]. given to the investors as their profits.
Supply of two Boeing 777-300E aircraft According to the Deputy for Infrastructure in the
In 2013, Shariah funds were used to import two Boeing Ministry of Planning and National Development
777-300Es, to strengthen Indonesia’s fleet. The Shariah (Bappenas), funding through sukuk has several
concept for payment resulted from cooperation between advantages, namely the absence of currency risk, since
PT Garuda Indonesia (GIAA) and Alafco Aviation the loans are domestic, and that they are non-binding. In
Lease and Finance Company from Kuwait. Alafco has addition, the superiority of funding a project through
been in Shariah-compliant aircraft leasing since 2000, SBSN-PBS is amongst other things is that the source of
applying ethical investing and equity tied only to profits funding is the money market, so that the total cost can
using genuine assets or the cash flow resulting from be higher and the timing of the issue/provision of funds
them. is more flexible, which supports the continuity of

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58 Lamari, et al.

execution of the project. The conditions for billion. This project will be paid for by sukuk, and will
infrastructure projects to be paid through SBSNs are have the advantage of being a domestic borrowing, so
that the project is a priority activity under the National that is non-binding as is the case with overseas
Medium-term Development Plan (RPJMN), that it be borrowings, and the sukuk does not include interest, but
approved by Bappenas for the technical readiness and only administrative costs.
appropriateness of the execution of the project, and that
the execution of the project by its initiator follow the Construction and development of Belawan
requirements in this field in the national budget [12]. Container Terminal project
This project which will use Shariah funding in the field
The construction of the dual track Cirebon-Kroya line of sea transportation is a project to build and develop
will provide safe, fast and secure public transport more the Belawan Contain Terminal Phase 1, located on the
quickly, while the number of users of the railway should northeast coast of Sumatra and 27 km from Medan, the
increase, reducing congestion and the load on the roads. capital of North Sumatra. This project is intended to
The summary of the works in Stage I is the provision of increase the capacity of the Belawan Container
railway bridges, railway signalling and Terminal. The project will be carried out by the
telecommunications and construction management. In Directorate General of Sea Transportation (DGST)
Stage II, the tracks will be laid, railway bridges will be under the Ministry of Transportation (MOT). The scope
built, and railway signalling and telecommunications of the project includes civil engineering, equipment,
and construction management will be undertaken [11]. information systems and developing the schematic
conceptual framework for operating the container
Dual track Manggarai-Cikarang construction terminal, consultancy, personnel support and financial
project auditing. Civil engineering includes dredging, land
One project to be built with sukuk funding in 2014 is the reclamation and recovery, revetments, extending the
Manggarai-Cikarang dual track construction. The container wharves, site expansion, rain drainage system
objective of this project is to separate the long distance and service roads and utilities. Equipment includes
and commuter tracks. A further objective is to increase gantry cranes and transtainers, trailers, chassis and
traffic capacity between Jatinegara and Cikarang stackers. Consultancy includes evaluating the
stations. The construction project has been divided into environmental effects, detailed engineering design and
four packages, two of which, Packages A and B22, are management and supervision of the project. Personnel
to be funded with sukuk. Package A is the construction support includes skilled labour, training, startup
of the dual track between Manggarai and Jatinegara, and workshops and socialisation visits. The new container
package B22 is the construction of the dual track terminal port will have a container wharf 350 m long
between Jatinegara and Bekasi. The Secretary-General and 30 m wide. The seabed will be sufficient to
of the Ministry of Communications declared that the allow36,000 DWT container ships to manoeuvre. The
Manggarai-Jatinegara dual track would need Rp2.4 container yard will add 157,700 m2 of storage –
trillion and the Jatinegara-Bekasi dual track would need sufficient for 8,921 TEUs [14].
Rp1.46 trillion [11].
The construction and development of Phase 1 of the
This project has been delayed for 6 years, owing to Belawan Container Terminal will be funded by the
problems with compensation for land. According to the Islamic Development Bank (IDB) and PT Pelabuhan
head of the land section in the Bekasi municipal Indonesia 1. The istisna’a scheme of Shariah funding
administration, only around 76% of compensation has will be applied to paying for the project. A concession
been paid out so far because there are still a number of agreement will run with a state-owned enterprise during
residents who have not agreed to the size of the the operation and maintenance phase of the operation.
compensation for their land on the path of the railway. Income during operation and in the maintenance phase
This project also requires the freeing of 207 plots of will be used to return the funds invested.
land located in three Kelurahan in the municipality of
Bekasi. The Kelurahan are Aren Jaya, Bekasi Jaya and According to the Ministry of Transportation informant,
Duren Jaya. The railway will be built with the aim of the project is in the final stage of provision of the civil
each track being used for a different direction. This is to engineering contractor and the results of the assessment
avoid head on collisions and to increase traffic capacity were forwarded to the IDB in the 18 September 2014.
[13]. The project suffered delays resulting from the
processing of proposals for re-scoping the package of
Rolling stock provision project civil engineering. The re-scoping was agreed to by the
Another project to be funded by sukuk in 2014, in IDB, with Package I being funded by IDB loan;
addition to the Manggarai-Cikarang dual track, is the Packages II and III will be settled through Rupiah
provision of 55 economy class trains, consisting of 50 funding (PT PELINDO). In order to accelerate the start
K-3 AC (5 trainsets and 5 KMP-3 AC), valued at Rp217 on the physical work, the IDB proposed that the

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 Sukuk Utilisation for Transportation Infrastructure 59

executing agency immediately send in the draft contract [6] Tax Flash, Government Regulation No.16 of 2009
for review first by the IDB while awaiting the results of concerning Income Tax.
the evaluation of the civil engineering. In preparing the [7] N. Indrasti and H. Kartika, In: A.B. Amri (Ed.),
employment plan, the executing agency indicated that Sukuk Akan Membiayai Proyek Tol Medan-
the load would be extended to 2017 due to delay in Kualanamu, Kontan, 28 February 2012,
signing the contract. Nevertheless, this proposal must http://nasional.kontan.co.id/news/sukuk-akan-
await progress on the physical works during 2015. membiayai-proyek-tol-medan-kualanamu.
Progress on the project for 2014 is around 32% of the [8] Dibiayai Syariah, Garuda Datangkan Dua Unit
block finance has been paid, or around $US36 million. Boeing Senilai Rp6 T, Kabar bisnis, 22 April 2013,
The target for the total value of disbursement by the end http://www.kabarbisnis.com/read/2838450.
of 2014 was 58% or around $US66.81 million. Other [9] B. Supriyanto, Garuda Indonesia-Alafco Teken
components that had been completed were capacity Perjanjian Syariah Ijarah Rp3,58 Triliun, Lavinda,
building for communities, facilities and local 22 April 2013,
government as well as facilitation of activities. http://industri.bisnis.com/read/20130422/98/10175/
garuda-indonesia-alafco-teken-perjanjian-syariah-
5. Conclusion ijarah-rp358-triliun.
[10] I. Kelana, Pemerintah Akan Terbit Sukuk Proyek
This article has outlined how sukuk can be implemented Rp. 7,5 Trilyun, Republika, 22 August 2014,
in infrastructure financing, especially in Indonesia along http://www.republika.co.id/berita/ekonomi/syariah-
with the regulations and policies that support this ekonomi/15/03/04/koran/syariah-
implementation. The caution in utilising sukuk for koran/14/08/22/nap7ka12-pemerintah-akan-
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This study was supported by AIIRA Grant Program Ganda-Melalui-SBSN-PBS-60280.
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Makara J. Technol. 1 April 2018 | Vol. 22 | No.1