DOMINANCE OF MARKET SHARE OF SUKUK IN INDONESIA

Indonesia is one of the issuers of sukuk in the world with various series that have been issued, this sukuk aims to help finance the state budget for various sectors for sustainable development programs. This study uses a qualitative research method using a phenomenological approach. The results show that the government is still dominated by sukuk because most of the financing of sukuk in Indonesia are government projects in various sectors, in their issuance in collaboration with conventional and sharia banking, securities companies that become AB Bursa. Sukuk series issued by the government such as Islamic Fixed Rate (IFR), greensukuk, Indonesian hajj fund sukuk (SDHI), savings sukuk, retail sukuk, sharia state treasury bills (SPNS), project based sukuk (PBS).


Introduction
In Islam, this endeavor is obligatory because it is an effort to make our lives better in all fields, including investment. Investment as a form of our efforts as humans to make economic life better because the assets we have must have zakat so that our assets are not consumed by zakat as in the letter At Taubah: 103 "Take zakat from some of their assets, with that zakat you clean. and sanctify them " (Ministry of Religion of the Republic of Indonesia, 2015) . Investment is a form of implementing the use of assets for productive activities, the more productive, the greater the zakat, but the wheels of the economy will be better (Hidayat, 2011). In simple terms, zakat can still be paid as a cleansing of our assets which can be taken from the investment profits we get.
In Islam, all aspects of life are regulated in the Qur'an and Hadith, including investments in accordance with the sharia. There are several things that are not allowed in investment activities, namely maisir, gharar, usury, batil, bay'i ma'dium, ihtikar, taghrir, ghabn, talaqqi al-rukban, ghishsh, tanajush / najsh, dharar, rishwah, immorality and zalim (DSN-MUI., 2019). In addition, investment must be professional, starting from the type of business, the person or entity that manages it so that the investment can provide benefits for both (Putra, 2018). There are many types of investment that can be channeled for the development of our assets, many types of investment in the Islamic capital market, namely Islamic stocks, sukuk, Islamic mutual funds, Islamic exchange traded funds (ETF), sharia asset-backed securities (EBA), sharia real estate investment funds (DIRE) (IDX Islamic, n.d.).
Sukuk investment in Indonesia is starting to be of interest to the public at large because it does not require large capital, the same as other types of investment in the Islamic capital market, sukuk is a type of securitization of assets in accordance with Islamic principles in the Islamic capital market (IDX Islamic, n.d.). Indonesia is a large country with a very large population so that Indonesia is a very potential market for various types of world investment, many world investors are interested in investing their capital.
Sukuk are starting to be of interest to the public in Indonesia with a very encouraging development, there are many sharia effects that can be used as an alternative investment in the Islamic capital market and sukuk are an alternative investment in Indonesia. However, the existence of sukuk is still dominated by the Government in its issuance in accordance with Law number 19 of 2008 concerning sukuk (Bank Indonesia, 2018) which is intended for government-owned infrastructure where the sukuk is a development financing that involves community participation.
In this study we will focus on the sukuk or state sharia-based letter (SBSN) in Indonesia, This research focuses on the development of sukuk issued by the Indonesian government and the extent of the government's dominance in issuing these sukuk and how the impact is generated by the issuance of government sukuk, the implementation of sukuk financing for infrastructure development in Indonesia and the development of the sukuk itself for development in Indonesia. If in the previous research only explained some types of sukuk, for example only savings sukuk or retail sukuk, but in this study it explains all types of sukuk issued by the government both to domestic investors and investors abroad with various types of sukuk, so it can be seen how the government dominates in issuing sukuk.

Method
This study uses a qualitative research method with a phenomenological approach, which significant statements, structural and textual descriptions, data sources are carried out by interviews, using documents, observation and art by trying to explain rationally, using assumptions and supporting data related to it . with this research (Creswell & Clark, 2017). This study uses a qualitative research method with a phenomenological approach, data sources used are data from various agencies such as the roadmap for the Indonesian Islamic capital market, the internet, books on the Islamic capital market, especially about sukuk in general, statistical data so that it describes important statements and is able to describe. the development that occurred was the development of sukuk in Indonesia. Interviews in this study use a virtual system such as in the Islamic capital market webinars such as the head of the Islamic capital market division, members of the national sharia board (DSN). Observations were made by looking at the number and types of sukuk in Indonesia that were getting better, especially among stock investors who were starting to be interested in increasing their investment in sukuk through several groups on social media such as WhatsApp, Instagram, Telegram and others.

Results And Discussion
Government policy to develop the Islamic financial market in Indonesia, the Government seeks to launch a sharia-based investment and financing instrument, namely State Sharia Securities (SBSN) or known as State Sukuk. The SBSN Law is a breath of fresh air for both the Government and market players in their efforts to develop domestic financial markets. So far, sukuk has developed conducive to economic development and stimulates investment development and has a positive effect on economic growth (Smaoui & Khawaja, 2017).
The community is already familiar with investment activities, especially investments in the Islamic capital market, sukuk is one of the investment alternatives where Indonesia is not the first country to issue sukuk but Malaysia, which was issued in 2019 in the form of corporate sukuk, while the country's first issuing sukuk is country. Bahrain in 2001, meanwhile in Indonesia, the first to publish was PT. Indosat Tbk in the form of corporate sukuk in 2002 (Aminy, 2018).
The issuance of Indonesian sukuk is not only intended for the domestic market but for the international market as well as in 2009 the government issued Indonesian State Sukuk (SNI) or also known as Indonesian global sukuk, when the SNI 25 series sukuk in 2015 was issued sukuk on the international market this shows that the sukuk can be accepted by the international community, here is the distribution (Hariyanto, 2015).  (Hariyanto, 2015) The journey of issuing sukuk in Indonesia is not the first time in the world, but since its inaugural issuance to date it has in extraordinary developments, here is the journey of state sukuk from 2008 to 2016 (Finance., n.d.)starting from the issuance of Law No. 19 year 2008 concerning State Sharia Securities or SBSN.  Issuing sukuk ijarah, mudharabah respectively 1. 2011 Issued 1 sukuk mudharabah 2012 The value of the sukuk ijarah is Rp. 57.09 trillion 2014 The increase in value in 2014 was 75.54 trillion Source: (Ardi, 2018) Since the issuance of state sharia securities (SBSN) for the first time in 2008 it has experienced a tremendous increase even in 2014 it experienced excess demand which in lowering the profit sharing that must be given to investors, sukuk in Indonesia is intended for development financing, government project financing can help the Indonesian economy besides sukuk as an alternative to halal investment for Muslims (Indriasari, 2018), sukuk as a new form of investment in Indonesia with a lot of interest from domestic investors which is marked by the value of sukuk which continues to increase from year to year.
The purpose of issuing state sharia securities (SBSN) is to finance the state revenue and expenditure budget and to build government projects based on sharia principles using ijarah, mudharabah, musyarakah, istisna 'contracts issued directly by the government or through SBSN issuing companies in accordance with the provisions; has assets in the form of land and buildings (President of the Republic of Indonesia, 2008). The projects to be launched in the 2020 fiscal year are 728 projects spread across 34 provinces, as follows (Finance., n.d.): 1. A total of 30 transportation infrastructure projects at the Ministry of Transportation with a value of Rp.6.90 trillion; 2. A total of 171 road and bridge infrastructure projects at the Directorate General of Highways at the PUPR Ministry with a financing value of Rp.10.60 trillion; 3. A total of 66 infrastructure projects for flood and lahar control, management of dams and reservoirs, as well as management of main urban drainage at the Directorate General of Natural Resources at the Ministry of PUPR with a financing value of Rp.4.50 trillion; 4. A total of 10 haj embarkation projects and 40 integrated haj service center projects at the Directorate General of PHU of the Ministry of Religion, valued at Rp.460 billion; 5. A total of 6 constructions of PTKIN building facilities and facilities and 136 madrasas at the Directorate General of Islamic Education at the Ministry of Religion, valued at IDR 2.09 trillion; 6. A total of 228 construction and rehabilitation projects for marriage halls and Hajj rituals at the Directorate General of Islamic Community Guidance at the Ministry of Religion, valued at IDR 356.25 billion; 7. There are 6 conservation center development projects, 1 state forestry secondary school construction project and 2 laboratory construction at the Ministry of LHK worth IDR 237.41 billion; 8. A total of 24 higher education building construction projects at the Ministry of Research, Technology and Higher Education worth Rp1.49 trillion; 9. A total of 1 laboratory development project in BSN is worth IDR 70 billion; 10. A total of 4 laboratory development projects at LIPI worth IDR 500 billion; and 11. There is a total of 1 peseta component testing laboratory project at LAPAN valued at IDR 125 billion. Sukuk must have clear underlying or assets, project-based sukuk are commonly used for developing countries with assets that can contribute 62% with the support of 19% of assets from global sukuk then based on the criteria for the return type of sukuk based on assets 98% from global suskuk with supporting assets. of 2% (Sillah, 2018). In the issuance of sukuk, there are several things that can affect it, such as company profits and then always adhering to sharia rules for the type of sukuk mudharabah issuance , other factors are the sukuk yield as well as the inflation rate and the age of the sukuk issuing company (Utami, Trinugroho, & Sergi, 2019).
Countries that issue sukuk will provide returns to the public as investors if the GDP (Gross Domestic Product) of a country is high which is marked by high tax revenues, the government can pay higher returns on the sukuk and vice versa, however, it must be noted that the quality of the sukuk issued is not only the quantity only takes into account the adaptation of the sukuk sharia law that is being traded (Hendri, 2018). Based on the estimation results from Distributed Lag (ARDL) in the long term that there is an exchange rate that has a significant effect on SBSN while inflation and interest rates do not have a significant effect on SBSN so that SBSN is a safe investment in accordance with sharia principles (Juaris, Masbar, & Seftarita, 2018 Islamic Fixed Rate or IFR is issued by the government with a term of more than 1 year through auction, private placement , closed secondary market, then investors will get a return every 6 months in rupiah currency (Ministry of Finance, 2016). Since 2008 and 2009 when it was published for the first time in the domestic market by means of bookbuilding (ordering for a certain period by way of auction) but after 2011 Islamic Fixed Rate (IFT) was no longer published then a series of Project Based Sukuk (PBS) was issued instead. with a system similar to that of IRT (Nopijantoro, 2018). There are several developments that occurred in the development of national securities, especially in the State Sharia Securities from 2014 to 2018 (Bank Indonesia, 2018) as follows:

Retail Sukuk (SR)
State Sharia Securities or SBSN issued by the government by means of bookbuilding , this series began to be issued in 2009 under the names SR-01 to SR-11 in 2019, where they can be traded with fixed yields. The issuance of this retail sukuk uses the Ijarah Sale and Lease Back contract using state-owned goods (BMN) as the underlying, then the use of another contract is Ijarah Asset to be Leased using state-owned goods and projects ordered by the government as the underlying (Yaya & Sofiyana, 2018). Following are some of the developments in retail sukuk in Indonesia.

Global Sukuk or Indonesian State Sukuk (SNI)
Issued by the government using the bookbuilding method in the form of foreign currency, namely USD issued in 2009 with a tradable nature and will get fixed returns. Based on research from Rahman (Rahman, Duasa, Kassim, & Zainudin, 2017), sukuk published by the Government of Indonesia, Turkey, Malaysia, the United Arab Emirates, Bahrain using panel data from 2006 to 2013 show that only the inflation rate is able to influence the yield of the country's sukuk. Other factors that influence the development of sukuk are structural, financial and institutional factors, as well as the state's macroeconomic condition in the period 2001 to 2013 in 13 countries (Smaoui & Khawaja, 2017). Sukuk financing by the government is mostly for infrastructure financing with procedures starting from project preparation, proposal, feasibility assessment, fiscal considerations, approval and rejection, allocation of funds, preparation for project implementation then funding for state sukuk, while the financing structure is divided into project financing and project underlying (Fauziah, Syifa, & Nurwahidin, 2020).
When the global sukuk was first issued in 2009, it was already in demand by world investors and even experienced an excess of demand, the yields given were also much greater than that of the country sukuk issued domestically, the difference is approximately 3-5% , this is one of the reasons factors of increasing demand for global sukuk, according to Eri Haryanto as an employee of the Directorate General of Financing and Risk Management of the Ministry of Finance of the Republic of Indonesia (Hariyanto, 2017) with the development of world investors, namely: 3. Both of them use sharia principles with the wakalah contract also having underlying assets in the form of State Property; land and buildings by 51% and government projects by 49% which is the largest sukuk issuance in Asia.
In general, sukuk is in demand by world investors, especially for non-Muslim investors, this is because in Islam it focuses on openness or transparency so that no one is harmed, is careful not to carry out speculative activities, by sharing existing risks and the main thing. is not making investments that contain usury, there is a clear underlying condition and Indonesia is an international sovereign sukuk issuing country with a total of US $ 16.15 billion (Directorate of Sharia Financing, 2018)

Indonesian Hajj Fund Sukuk (ADHI);
The contract used by ijarah al khadamat is non-tradable in nature which is a private placement which is a follow-up to the cooperation with the Ministry of Finance and the Ministry of Religion in 2009 in accordance with the DSN-MUI fatwa no.118 / DSN-MUI / 2009 with the underlying form of haj services (lodging, food and transportation). The Indonesian Hajj Fund Sukuk (SDHI) is very effective in financing because it can handle half of the service needs and costs of Indonesian Hajj which are marked by an increase in the quality of Hajj such as improvements to lodging or lodging, consumption and transportation used by Indonesian pilgrims (Sianipar, 2019

Sharia State Treasury Bills (SPNS)
Is a short-term sukuk (tenor 6 months) with the aim of assisting the management of the state treasury and the development of the Islamic money market. Sharia State Treasury Bills (SPNS) are state sukuk that are traded through auctions and private placements using the rupiah currency with a term or tenor of 1 year with a discount in the form of a discount (Djppr, 2019). In fact, the government sharia bonds or sukuk as a whole have a lower risk and better performance than conventional state bonds, the focus of the instruments studied from 2008 to 2016, such as the average interest rate of Bank Indonesia, yield to maturity, current yield, global bond rating (Ulumuddin, 2016).
The state sukuk with the SPNS series (Sharia State Treasury Bills) has conducted an auction on April 7, 2020 in an effort to meet the 2020 APBN budgeting target, the auction will be announced on the same day where the auction is regulated in   (DSN-MUI, 2010). Following are the terms and conditions of the Project Based Sukuk (PBS) which aims to finance the 2020 State Budget, the auction is conducted openly which can submit bids at auction but purchases through auction participants who have received approval from the Ministry of Finance of the Republic of Indonesia (djppr, 2020). Issued in 2016 as part of the retail rate, aimed at domestic investors with a minimum purchase of 2 million, using a fixed yield system that is paid every month (tenor 2 years). Savings sukuk with series ST-001 on 22 August -2 September 2016 with a 2-year tenor with a yield of 6.9% per year that cannot be traded on the secondary market ( non-tradable ), this savings sukuk aims to finance the state budget (djppr) (Ministry of Finance, 2018). Savings sukuk have almost the same objectives in broad outline for the types of State Sharia Securities or SBSN, namely to help finance the state budget by building infrastructure development, education, health and also helping the government in limiting the arrival of foreign investors (Hastuti, 2018).

Green Sukuk (GT)
The issuance of sukuk in all series issued by the government has the same objectives, namely to help finance the state budget and government projects, according to Suherman (Suherman, 2019) in his research that green bonds are the development of green sukuk in the country and show a positive increase until 2029, the number of enthusiasts from domestic investors towards this type of sukuk besides that demand from foreign investors is also very good for the state sukuk market. The following is the development of green sukuk for the year based on the green sukuk report in March 2020 where the Government of Indonesia has issued green sukuk during the period February 2018 and 2019 with the number of the Indonesian Government having issued two global sovereign green sukuk Twice in a row in 2018 amounting to US $ 1, 25 billion and US $ 750 million with a total amount of US $ 2 billion, here are the developments of green sukuk in Indonesia (Ministry of Finance, 2020). 3. Allocation based on activity In 2018 adaptation was 17% and mitigation was 83%, while in 2019 adaptation was 11% and mitigation was 89%. 4. Geographical spread of the 2019 green sukuk project North Sumatra, West Sumatra, North Sumatra, Jakarta, West Java, Central Java, East Java

Conclusion
The state sharia securities or SBSN issued by the Government of Indonesia have gone through a very long journey starting from 2004. Domestic investors are more familiar with the term sukuk, the purpose of issuing various series of sukuk is to help finance the APBN through various government projects. SBSN or sukuk with various series including Islamic Fixed Rate (IFR) sukuk, retail sukuk, green sukuk, savings sukuk, Indonesian hajj fund sukuk (SDHI), Project Based Sukuk (PBS), Sharia State Treasury (SPNS). Sukuk financing is allocated mostly for government projects throughout Indonesia, so it is clear that the dominance of its financing is allocated for infrastructure activities such as building roads, bridges, hospitals, educational facilities at various levels.