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Sukuk is a highly appealing alternative instrument of conventional bond in the capital market over the last one decade. To a certain extent, the market players assume sukuk as the same as bond. However, sukuk representing undivided shares in the ownership of underlying asset, whereas bond is a type of debt instrument. In this paper, we contribute to the on going discussion on whether Islamic bonds (sukuk) are different from conventional bonds. We investigate the impact of global economic uncertainty factors including interest rate, exchange rate, oil price, and gold price on local currency sovereign conventional bonds and sukuk indices on Indonesia capital market using daily data over the sample period August 10, 2009 until December 31, 2018 by applying the ordinary least squares (OLS) regression method. Our main objective is to examine the time-varying correlations between global economic uncertainty factors including interest rate, exchange rate, oil price, and gold price on local currency sovereign conventional bonds and sukuk indices and examines how the impact of global economic uncertainty factors including interest rate, exchange rate, oil price, and gold price differs between on local currency sovereign conventional bonds and sukuk indices.