The opportunity for implementing islamic project financing to the Indonesian infrastructure development

Ayomi Dita Rarasati, Bambang Trigunarsyah, Eric Too

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

5 Citations (Scopus)

Abstract

Purpose - This chapter discusses the opportunity of Islamic project financing implementation for public infrastructure development in Indonesia. Design/methodology/approach - This chapter, firstly, reviewed existing literature on Islamic finance to explore the applicability of Islamic financing in infrastructure development. Interviews were conducted as the first stage of Delphi method approach. This was then followed by reviewing Indonesia's government policies and regulations in infrastructure industry and Islamic financing. Findings - This chapter enlightens the implementation of Islamic financing on infrastructure project financing in Indonesia. The findings indicate that the government policies and regulations on both infrastructure investment and Islamic financing support the implementation of Islamic project financing, whereas, an improvement is still needed in order to overarch infrastructure business and Islamic financing investment. Research - Financing framework development for Indonesia infrastructure projects. Limitations/implications - The result reported comprises the preliminary study of Islamic project paper written based on published research papers and interviews. Furthermore, the data collected for the study are limited to the case of Indonesian infrastructure projects. Practical implication - Islamic financing in Indonesia infrastructure projects development has not been optimally implemented. Therefore, this chapter serves as a catalyst to explore alternative financial scheme such as Islamic financing for infrastructure development. Originality/value - This chapter highlights possibilities and obstacles in applying Islamic scheme to infrastructure project financing. This provides a framework to analyse the steps to implement Islamic financing successfully in infrastructure development.

Original languageEnglish
Title of host publicationThe Developing Role of Islamic Banking and Finance
Subtitle of host publicationFrom Local to Global Perspectives
PublisherEmerald Group Publishing Ltd.
Pages103-116
Number of pages14
ISBN (Print)9781783508174
DOIs
Publication statusPublished - 1 Jan 2014

Publication series

NameContemporary Studies in Economic and Financial Analysis
Volume95
ISSN (Print)1569-3759

Keywords

  • Indonesia
  • Investment
  • Islamic project financing
  • Public infrastructure

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