Correlation of State Sharia and Sovereign Debt Securities Issuance to Sustainable Development
Yudha Prawira
Department of Economic and Social Agriculture, University of Brawijaya
Abstract
Issuance of Indonesian Government Securities (SBN) is increasing every year. The issuance of SBN is expected to spur economic growth so that Indonesia can reach the SDGs. Indonesian securities consists of Islamic (SBSN) and conventional (SUN) bonds. Quite a number of studies have analyzed the differences between sukuk and conventional bonds from results, performance and reliability perspective, but there are still few studies that analyze their correlation with sustainable development. In this paper, each SBSN and SUN are analyzed with one of SDGs indicator, constant GDP per capita. Then compared which one has a stronger correlation. The analytical method used is the Pearson correlation test. Secondary data was obtained from literature studies and processed with SPSS 25 software. The finding is: each SBSN and SUN had strong and significant correlation, but SUN correlation is stronger than SBSN on Indonesia constant GDP per capita. SBSN issuance needs to be improved considering its potential is still very large in Indonesia.
Keywords: Sukuk, bonds, Pearson correlation test, Sustainable Development Goals
Topic: Sukuk