Case Studies on Islamic Finance for Asset Recycling – Indonesia

The issuance of Indonesia's US$ 1.25 billion five-year sukuk (in March 2018) is the world’s first sovereign green sukuk. That issuance is part of US$ 3 billion issuance that Indonesia managed to implement when it developed the sukuk within two months with the assistance of the World Bank. It was issued under the Indonesia's Green Bond and Green Sukuk Framework. The underlying sukuk assets in Indonesia's Sovereign Green Sukuk under this issuance consists of state owned assets including land and buildings (accounting for 51% of the asset pool) and project assets which are under construction or to be constructed (accounting for the remaining 49% of the asset pool).