The opportunity for implementing Islamic project financing to the Indonesian infrastructure development

Rarasati, Ayomi Dita and Trigunarsyah, Bambang and Too, Eric (2013) The opportunity for implementing Islamic project financing to the Indonesian infrastructure development. In: International Islamic Finance Conference (IIFC 2013): Islamic Finance in a Changing World, 14-16 Apr 2013, Abu Dhabi, United Arab Emirates.

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Purpose – The purpose of this paper is to explore the opportunity of Islamic project financing implementation for public infrastructure development in Indonesia.

Design/methodology/approach – This paper, firstly, reviewed existing literature on Islamic finance to explore the applicability of Islamic financing in infrastructure development. This is followed by reviewing Indonesia's government policies and regulations in infrastructure industry and Islamic financing.

Findings – Government policies and regulations support the implementation of Islamic project financing in infrastructure. However, the current regulations do not cover Islamic project financing scheme and instruments for infrastructure project. Therefore, there is a need to improve those policies and regulations to bridge the gap of infrastructure business and Islamic financing.

Research limitations/implications – The result reported comprises the preliminary study of Islamic project financing framework development for Indonesia infrastructure projects.

Practical implication – Islamic financing in Indonesia infrastructure projects development has not been optimally implemented. Therefore this paper serves as a catalyst to explore alternative financial scheme such as Islamic financing for infrastructure development.

Originality/value – This paper highlights possibilities and obstacles in applying Islamic scheme to infrastructure project financing. This provides a framework to analyse the steps to implement Islamic financing successfully in infrastructure development.

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Item Type: Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)
Refereed: Yes
Item Status: Live Archive
Additional Information: Published version deposited in accordance with the copyright policy of the publisher.
Faculty / Department / School: Historic - Faculty of Business and Law - School of Management and Marketing
Date Deposited: 12 Jun 2013 06:01
Last Modified: 01 Aug 2017 01:07
Uncontrolled Keywords: Islamic project financing; Indonesia; public infrastructure; investment
Fields of Research : 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150201 Finance
09 Engineering > 0905 Civil Engineering > 090505 Infrastructure Engineering and Asset Management
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150307 Innovation and Technology Management
Socio-Economic Objective: E Expanding Knowledge > 97 Expanding Knowledge > 970115 Expanding Knowledge in Commerce, Management, Tourism and Services

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