Evaluation of Sovereign Sukuk as a government financing instrument with stakeholder theory: a moving forward policy from Indonesia’s experience

Purpose - This study aims to examine the performance of government projects financed by the issuance of Indonesia Sovereign Sukuk (SBSN Project) from stakeholder theory perspective and propose policy recommendations to improve its effectiveness as a government financing instrument. Design/methodology/approach - The authors applied a qualitative interpretive approach in this study by conducting content analysis using stakeholder theory. Big data from official webinars about Indonesia Sovereign Sukuk issuance on the internet were used and coded by qualitative data analysis software. Findings - The results reveal the stakeholders’ concerns regarding the project implementation. The cluster analysis confirms that technical ministries are the instrumental stakeholders who have the authority and tools to achieve SBSN Project success. The authors propose inclusive policy recommendations for each stakeholder, such as establishing an SBSN Project Master Plan, presuming disincentive to use project extension facility and setting up a comprehensive approach to assist working units in technical ministries in project preparation, development and service delivery. From the perspective of sustainability, the Government of Indonesia should focus more on education to the local community as end-users, value creation to integrate SBSN Projects with other financing schemes and regulation to ensure the effectiveness of a reward–punishment mechanism. Practical implications - The findings of this study may be useful to the Government of Indonesia, especially the Ministry of Finance, in determining and establishing moving forward policies that are relevant and contribute significantly to the sustainability of the Sovereign Sukuk programme. Originality/value - This study is one of a few studies exploring Islamic public financing instruments, with its originality lying in the examination of the SBSN Project performance from an academic approach, specifically stakeholder theory. This study uses big data available from the public domain to formulate proposed actions to achieve a sustainable SBSN Project programme.