THE ANALYSIS OF INDONESIA SOVEREIGN SUKUK IN TOURISM SECTOR: POSSIBILITIES AND CHALLENGES

Abstract

Purpose – The purpose of this study is to determine the feasibility of Indonesia Sovereign Sukuk to financed tourism development project and it’s possibilities and challenges. Design/ Methodology/ Approach – This study used a semi-structured interview with the representative from Directorate of Islamic Finance in Ministry of Finance of Indonesia as Sovereign Sukuk issuer and the head of Indonesian Tourism Association as a part of tourism. Then it will be analyzed through triangulation to make the interpretation. Findings – The result of this research is for this time being, Labuan Bajo tourism project is cannot be financed by sukuk since it is contrary with the regulation. However, it is could be possible if the regulation is changed. Research Limitation - This research focusing on Labuan Bajo area and the perspective of two institution.