Authors:
Septi Adi Jaelani Bachtiar
;
Handi Risza
and
Prima Naomi
Affiliation:
Magister Manajemen Faculty Economics and Business, Universitas Paramadina and Indonesia, Indonesia
Keyword(s):
Sukuk, Mudharabah, Ijarah, Risk, Return.
Abstract:
Sukuk’s value and the amount of Sukuk’s emissions in Indonesia continue to increase, although the options are still limited to Mudharabah and Ijarah contracts only. Sukuk’s issuers also prefer to issue Sukuk with an Ijarah agreement. There are several opinions as to why Sukuk Ijarah is more popular in Indonesia, one of which is its risk consideration of the agreement. In addition, a few previous studies have also mentioned that Mudharabah Sukuk has a better yield than that of Ijarah Sukuk, while other research has highlighted the relationship between the performance of Sukuk and its risk for both Ijarah and Mudharabah. This study aims to examine the difference between Ijarah and Mudharabah Sukuk in terms of their performance and risk using reasonable price data and a maturity period. The Sukuk’s return and risk is obtained by calculating the amount of Holding Period Yield (HPY), Yield to Maturity (YTM), Risk Adjusted Return (RAR), and the HPY deviation standar. We found that in ter
ms of return and risk, the Ijarah-based Sukuk differs significantly from the Mudharabah-based Sukuk. The Ijarah-based Sukuk shows higher return performance than Mudharabah-based Sukuk. In terms of risk, the Ijarah-based Sukuk also shows higher risk than the Mudharabah-based Sukuk.
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