Corporate Sukuk Strengthening Strategy in Indonesia

This study examines strategies for strengthening corporate sukuk in Indonesia by analyzing the relationship between corporate governance, corporate sustainability, and default risk mitigation. The rapid growth of the corporate sukuk market in Indonesia reflects increasing investor interest in Islamic financial instruments; however, challenges related to governance quality, sustainability disclosure, and financial risk management remain significant. Therefore, this research aims to identify the main constraints and formulate strategic priorities to enhance the sustainability and resilience of corporate sukuk. This study employed a qualitative approach combined with the Analytic Network Process (ANP) method. Data were collected through literature studies, Focus Group Discussions (FGDs), in-depth interviews, and pairwise comparison questionnaires involving experts, academics, regulators, and practitioners in the field of Islamic finance. The findings indicate that default risk is the most dominant criterion affecting corporate sukuk sustainability, followed by corporate governance and corporate social sustainability. Information transparency emerged as the primary governance challenge, while strengthening board structure and composition became the most effective governance strategy. In terms of sustainability, the development of a sustainable economic framework was identified as the top strategic priority. Furthermore, optimizing capital structure and strengthening cash flow projections are essential strategies for mitigating default risk. Overall, integrated governance, sustainability, and financial risk management strategies can strengthen investor confidence and improve the long-term stability of corporate sukuk in Indonesia.