The Role of Sukuk as an Islamic Financial Instrument in  Promoting Sustainable Economic Growth in Indonesia

Yudhi Kurniawan Zahari

doi:10.61132/iceat.v3i1.265

Authors

Yudhi Kurniawan Zahari Universitas Ibnu Khadun

DOI:

https://doi.org/10.61132/iceat.v3i1.265

Keywords:

Financial Management Behavior, Institutional Factors, Sharia Mechanisms, Sukuk, Sustainable Development Goals (SDGs), Sustainable Economy

Abstract

Sukuk, as a Sharia-compliant financial instrument, has evolved into a strategic financing alternative that not only supports the stability of the Islamic financial system but also has the potential to accelerate the achievement of sustainable economic development in Indonesia. However, optimizing the role of sukuk still faces various challenges, such as the effectiveness of Sharia mechanisms, institutional quality, and the financial management practices of stakeholders. This study aims to analyze the impact of sukuk on Sharia mechanisms and economic growth, as well as to examine the role of institutional factors, financial management practices, sustainable economic development, and the achievement of the Sustainable Development Goals (SDGs) within the framework of Islamic finance development in Indonesia. This study employs a quantitative approach with an explanatory research design through the distribution of questionnaires to 210 respondents, consisting of regulators, academics, investors, practitioners from Sharia financial institutions, and sukuk industry players, selected using purposive sampling. Data analysis was conducted using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with the assistance of SmartPLS 4.0 software. The research results indicate that all hypotheses were accepted: sukuk have a positive and significant effect on Sharia mechanisms and economic growth; institutional factors influence Sharia mechanisms and financial management behavior; and financial management behavior was found to contribute to a sustainable economy and the achievement of the SDGs. These findings confirm that strengthening sukuk instruments, providing effective institutional support, and improving the quality of financial management practices can serve as key strategies for driving inclusive, resilient, and sustainable economic transformation in Indonesia.

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