Sukuk model for islamic monetary instrument in Indonesia

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Indonesia has had some Islamic monetary instruments such as Bank Indonesia Islamic Certificate (SBIS), Bank Indonesia Islamic Facility (FASBIS), SBIS repurchase (repo), Government Sukuk (SBSN) repo. However, IILM (International Islamic Liquidity Management), as the global short term Sukuk (Islamic investment securities) issuer, has a unique Sukuk model which can become a reference model to further diversify the Islamic monetary instruments (central bank Sukuk) in the country. The paper attempts to propose a Sukuk model for the Islamic monetary instrument (central bank Sukuk) referring to the IILM Sukuk model. Particularly, it proposes not only the model (structure and cash flow) but also formulas accompanying the issuance of the proposed Sukuk referring to the IILM Sukuk structure and cash flow. This proposed central bank Sukuk for the Indonesian monetary authority could diversify the current Islamic monetary instruments and support the Islamic monetary operations as well. Taking into account the IILM Sukuk model has never been adopted in the Indonesian Islamic monetary instrument, this paper could be the first one proposing the a new model for the central bank Sukuk in the country.

Original languageEnglish
Pages (from-to)119-138
Number of pages20
JournalJournal of Economic Cooperation and Development
Issue number4
Publication statusPublished - 1 Jan 2019


  • Central bank
  • IILM
  • Sukuk

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