Indonesia has disbursed Rp333.6 billion (approximately US$18 million) in funding raised through Sovereign Sukuk, known locally as Government Sharia Securities (SBSN), to support a range of development projects in Bali and surrounding regions.
According to the Ministry of Finance, the funds were allocated to eight institutions and projects through May 2026, covering education, transportation, security, and public service infrastructure.
Head of the Bali Provincial Office of the Directorate General of Treasury (DJPb), Supendi, said beneficiaries include universities, national road projects, the Indonesian National Armed Forces (TNI), the National Police, and religious affairs offices.
Among the largest allocations, Udayana University received Rp100 billion for the procurement of office and laboratory equipment as well as the construction of laboratory facilities. A further Rp105 billion was directed toward the construction and rehabilitation of the Singaraja–Mengwitani national road, one of Bali’s key transport corridors.
Other projects financed through sukuk proceeds include a new police service center and equipment procurement for the Gianyar Police Department, housing facilities for personnel of the Bali Regional Police Mobile Brigade Unit, and housing and equipment projects for the 834th Infantry Battalion in East Nusa Tenggara.
The Bali Police School received funding for student accommodation and furniture procurement, while Ganesha University of Education (Undiksha) was allocated nearly Rp60 billion for educational equipment and laboratory development. The Bali office of the Ministry of Religious Affairs also received funding for equipment procurement and the construction of the Sukasada Religious Affairs Office.
The disbursement forms part of broader government spending in Bali. During the first five months of 2026, the central government realized Rp8.68 trillion in state expenditure in the province, representing 41.84 percent of the region’s allocated budget ceiling.
Indonesia is one of the world’s leading sovereign sukuk issuers and has relied on Islamic financing instruments for nearly two decades. Since launching its first sovereign sukuk in 2008, the country has raised hundreds of trillions of rupiah through domestic and international sukuk offerings.
Sukuk proceeds have become a major source of funding for infrastructure development across the country, supporting thousands of projects including roads, bridges, railways, airports, schools, universities, hospitals, and government facilities.
In recent years alone, Indonesia has continued to attract strong investor demand through multi-billion-dollar international sukuk issuances. The government raised US$2.35 billion through global and green sukuk offerings in 2024, followed by another US$2.2 billion issuance in 2025.
The country’s outstanding sovereign sukuk market is now valued at well over Rp1,000 trillion, making it one of the largest Islamic government securities markets in the world.
Indonesia’s extensive sukuk programme contrasts with the experience of the Maldives, where sovereign sukuk has played a much smaller but highly significant role in public financing.
Earlier this year, the Maldives successfully repaid its US$500 million sovereign sukuk that matured in April 2026, along with a final coupon payment of approximately US$24.7 million. The repayment removed one of the country’s largest external debt obligations and helped reduce concerns about a potential default.
Following the successful repayment, Fitch Ratings upgraded the Maldives’ Long-Term Foreign-Currency Issuer Default Rating from ‘CC’ to ‘CCC-’, citing the reduced risk of default and improved near-term financial outlook. The rating agency said the settlement of the sukuk had significantly lowered external financing risks facing the country.
While Indonesia routinely issues and refinances sovereign sukuk as part of its broader debt management strategy, the Maldives’ repayment was viewed as a major financial milestone due to the size of the obligation relative to the country’s economy and foreign currency reserves.
