Sukuk Negara as an Alternative for APBN Financing in Indonesia

Purpose: In supporting APBN financing, the government always prioritizes non-debt financing. However, the government also uses debt financing to meet the financing needs of the state budget. One of the alternative efforts that must be made by the Government is to develop Sharia-based SBN or what can be called Sukuk Negara. Method: This research uses a qualitative methodology. Result: Based on the results of research that has been conducted, it is known that State Sukuk have a major role in driving the growth of Islamic finance in Indonesia and can reduce the financing of the state budget deficit.


Introduction
The Ministry of Finance released Information on the 2021 State Budget with the theme Accelerating Economic Recovery and Strengthening Reform (Ministry of Finance, 2021). State revenue for 2021 will increase by IDR 43.7 trillion compared to 2020. Total state revenue for 2021 is IDR 1,743.6 trillion consisting of tax revenue, non-tax state revenue and grants. The state revenue obtained is used for state spending which consists of central government spending and transfers to regions and village funds. Total state spending in 2021 is IDR 2,750 trillion, an increase of IDR 10.8 trillion from 2020. Total state spending that is greater than income is referred to as a budget deficit in macroeconomics. The realization of central government spending in 2021 consists of realized K/L spending of IDR 1,190.81 trillion and non-K/L spending of IDR 809.89 trillion. The portion of K/L spending realization reached 59.52 percent, then followed by non-K/L spending realization of 40.48 percent of the total central government spending in 2021. If broken down according to the realization figures per each K/L, then ten K/L /L which has the highest expenditure realization figure for 2021 sequentially from the highest nominal is 1) the Ministry of Health of IDR 208.32 trillion, 2) the Ministry of Public Works and Public Housing of IDR 152.69 trillion, 3) the Ministry of Defense of IDR 125.89 trillion, 4) Ministry of Social Affairs in the amount of IDR 105.31 trillion, 5) Indonesian National Police in the amount of IDR 102.26 trillion, 6) Ministry of Finance in the amount of IDR 87.45 trillion including Palm Oil BLU Spending IDR 53.51 trillion), 7) Ministry of Education, Culture, Research and Technology in the amount of IDR 84.70 trillion, 8) Ministry of Religion in the amount of IDR 68.59 trillion, 9) Ministry of Transportation in the amount of IDR 33.69 trillion, and 10) Ministry of Communication and Informatics in the amount of IDR 23.41 trillion.The 2021 State Budget has a budget deficit of 5.7% of GDP (Gross Domestic Product). Over the past five years, budget deficits have continued to occur in the structure of the Indonesian state budget with an everincreasing ratio to GDP.  In line with the relaxation of the state budget deficit above 3 percent and the Government's commitment to continuing the policy of accelerating the handling of the impact of the Covid-19 pandemic and encouraging national economic recovery, the need for state budget financing for 2021 is still quite high. Realization of budget financing for 2021 reached IDR 871.73 trillion or 86.62 percent of the APBN target. Until mid-2021, the pandemic condition still showed no sign of ending. In fact, a delta variant was found with a faster transmission rate and high mortality rate, and has a very broad impact throughout the world. This delta variant causes an increase in daily cases in almost all countries in the world, so that several countries apply a lock down. Responding to these conditions, the Government of Indonesia implemented PPKM to control transmission by limiting community activities. This policy encourages an increase in government spending, so that extraordinary steps are needed to support this policy. Trilaksono, Komalasari, Tubarad, and Yuliansyah (2021) In supporting the Government's extraordinary steps, one of the steps taken by the Government is refocusing the budget to support the handling of Covid-19 and national economic recovery which is carried out through tightening, shifting and cutting the budget in 2021. Government spending is directed at supporting health management policies, protecting purchasing power society, as well as maintaining the resilience of the business world and national economic recovery when fiscal capacity is limited. Various government efforts to reduce the number of Covid-19 have resulted in a reduction in the number of cases of the delta variant in Indonesia in 2021.In supporting APBN financing, the government always prioritizes non-debt financing. However, considering the limitations of non-debt financing, the government also uses debt financing to meet the financing needs of the state budget. Debt financing in 2021 is carried out prudently to support the 2021 State Budget, aimed at accelerating the handling of Covid-19 and protecting the economy from the threat of a prolonged crisis.
One of the alternative efforts that should be carried out by the Government is to develop shariabased SBN. Given that the Islamic finance industry has increased rapidly in Indonesia as a result of public awareness of using sharia-based financial products. SBN instruments that comply with sharia principles are Surat Berharga Syariah Negara (SBSN) or Sukuk Negara, which consists of three types, namely Sukuk Negara Ritail(SR), Sukuk Negara Tabungan (ST), and Cash Waqh Linked Sukuk (CWLS) (Abitaha & Soelistyo, 2021

Sukuk Negara
The growth of Islamic finance in Indonesia is now increasing rapidly with a lot of support from the government, scholars andstakeholders.One form of government support for the Islamic finance industry is the launch of the Indonesian Sharia Economic Master Plan for 2019-2024. The vision of the Indonesian Islamic Economics Masterplan is to create an "Independent, Prosperous and Civilized Indonesia by Becoming the World's Leading Center for Islamic Economics". Based on this vision, there are four main priorities in developing the Islamic economy in Indonesia, namely: strengthening the halal value chain, strengthening the Islamic finance sector, strengthening micro, small and medium enterprises (MSMEs), and utilizing and strengthening the digital economy (Fauziah & Nurwahidin, 2020). One of the fastest growing Islamic financial instruments is sukuk. Sukuk in terminology is the plural form of the word "sakk"which means a certificate or proof of ownership. The National Sharia Council of the Indonesian Ulema Council (DSN-MUI) defines sukuk as longterm securities based on sharia principles issued by issuers to finance income for sukuk holders in the form of profit sharing, margin, or fees,as well as repaying the sukuk funds at maturity (Handayani & Surachman, 2017).  (Anam, 2018). In addition, the purpose of issuing State Sukuk is to encourage the development of the Islamic financial market in Indonesiabenchmarksin the Islamic financial market, and developing alternative investment instruments (Khatimah, 2017). Given that the majority of Indonesia's population is Muslim, it is necessary to have various types of sharia investment instruments that can be chosen by the public. The existence of State Sukuk is expected to be able to enlargemarket shareIslamic financial market in Indonesia.

Parties Involved in State Sukuk Issuance
The Directorate General of Sharia Financing of the Ministry of Finance states that in the issuance of State Sukuk there are several parties involved, namely: a. Obligor, namely the party responsible for the nominal payment and compensation of the issued State Sukuk. The obligor in issuing SBSN or State Sukuk is the Government. The government in this case is represented by the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance. DJPPR is responsible for issuing SBSN including managing payment of compensation and investment principal when due. b. Special Purpose Vehicles(SPV), namely a legal entity established specifically for the issuance of State Sukuk which has the function of being a sukuk issuer, as a Trustee representing the interests of investors, and beingcounterpartsThe government is in an asset transfer transaction. The SPV in issuing SBSN or State Sukuk is the SBSN Issuing Company. SPV has a dual role as a government representative in issuing SBSN and a trustee representing the interests of investors. c. Investors or sukuk holders have rights to compensation, margin and nominal value of the sukuk according to their respective contributions. d. Sharia Advisor,individuals whose knowledge is widely recognized in the field of Islamic economics and finance or someone who is part of the top institution in charge of fatwas. In Indonesia,sharia advisorrepresented by the DSN-MUI whose task is to provide sharia fatwas and opinions regarding the issuance of SBSN. e. Trustees/Trustee, a party representing the interests of State Sukuk holders. Law Number 9 of 2008 concerning SBSN states that the Trustee has the duty to enter into engagements with other parties for the benefit of SBSN holders, oversee SBSN assets for the benefit of SBSN holders, and represent other interests of SBSN holders related to engagements in the context of issuing SBSN.
Apart from these five parties added several other parties involved in the issuance of SBSN, namely: a. The Directorate General of Budget of the Ministry of Finance has a role in providing underlying assetsin the form of government projects as well as selecting State Property (BMN) to be used asunderlying assets. b. Government Ministries/Institutions whose role is to carry out managementunderlying assets whether in the form of BMN or government projects. c. Legal consultants tasked with conducting due diligence (due diligence)underlying asset, as well as assisting in the preparation of legal documents, and providing advice to the government regarding the issuance of SBSN.
Issuance of SBSN will run well if there is also good cooperation between the parties involved. Good cooperation between parties will allow the issuance of SBSN to be carried out in accordance with the goals set by the government. So that maintaining cooperation is something that must be jointly pursued so that the issuance of SBSN can run sustainably.

Underlying Assetsin State Sukuk Issuance
Underlying assetsare assets used as objects or basis for transactions in the issuance of sukuk. Assets used as the basis for issuing sukuk must have economic value and/or have cash receipts in the form of tangible or intangible goods, including projects that will be built or are being built. Underlying assetsis one of the crucial aspects that distinguishes between the issuance of State Sukuk and Government Securities (SUN). absenceunderlying assetsor object used as the basis for issuance, the securities issued will have the nature of a debt instrument (Khatimah, 2017 SBSN issued based on other contracts as long as they do not conflict with sharia principles e. SBSN issued based on a combination of two or more contracts. The first contract used in the issuance of State Sukuk is Ijarah. State Sukuk issued for the first time use a contractIjarah sale and lease backwith underlyingissuance or the object of issuance is State Property (BMN) in the form of land and buildings (Ramdhani, bin Masruhen, Ibrahim, Pramitha, & Lubis, 2022). Ijarah contracts are used in the issuance of state bonds because they are simple and easy to understand. Making it easier for potential investors to understand the flow of transactions in Sukuk Ijarah. Mudharabah Sukuk, namely State Sukuk issued based on a Mudharabah agreement or contract in which one party is the owner of capital (shahibul maal) which provides all the capital with the manager (mudharib), profits from the cooperation will be shared based on a pre-agreed ratio. Meanwhile, the losses incurred will be fully borne by the party who is the owner of the capital (Hendratni, Soemarsono, & Harsono, 2021 Musyarakah Sukuk, namely sukuk issued based on a musyarakah contract, in which two or more parties work together to combine capital used to build new projects, develop existing projects, or finance business activities. Profits and losses incurred will be shared according to the amount of each capital participation (Khatimah, 2017). Istishna' sukuk are sukuk issued based on an istishna contract in which the parties agree to buy and sell in order to finance an item/project. Regarding the price and time of delivery as well as the specifications of the goods/projects, it is determined in advance based on an agreement between the parties conducting the sale and purchase (Khatimah, 2017).

Research methods
This study uses a qualitative approach. A qualitative approach is used for several purposes, including to better understand every phenomenon that is not widely known by people and is used to examine something in depth.The analysis used was a literature study (literature research). Literature study is a comprehensive study conducted by studying various written documents that are relevant to the research theme. Literature study in this study uses several journals that are relevant to the research as well annual reportand related laws, such as the APBN report issued by the Ministry of Finance, the DSN MUI fatwa on State Sukuk and the Law on National Sharia Securities.

Reviewing State Budget Posture in Indonesia
One of the goals of the National Development which is continuously carried out by the government aims to provide people's welfare, including providing good infrastructure, education and health facilities for all groups, providing subsidies to disadvantaged groups and providing citizens with a sense of security and peace (Hendratni et al., 2021). All of these things require a large budget contained in the APBN structure. As the population increases, the government's burden in spending the State Budget for the welfare of the people also increases. State spending has increased significantly, if it is not matched by the same amount of income, then what will happen is a deficit in the state budget. In the future, the government should consider increasing the role of State Sukuk as a fiscal instrument in Indonesia. Not only as a debt financing instrument for the budget deficit, but also as state budget financing. Since 2012, the State Sukuk in the Project-Based Sukuk (PBS) series has been issued by the state (Hariyanto, 2017). PBS is the State Sukuk that usesunderlying assetsin the form of infrastructure projects that have been listed in the APBN. Referring to the realization of K/L spending for 2020-2021, the ministry that is closely related to the development of government physical projects is the Ministry of Public Works and Public Housing (Ministry of PUPR). In 2021, the Ministry of Public Works and Public Housing spent Rp. 155.9 trillion, an increase of Rp. 55.1 trillion compared to 2020. The increase in spending for the Ministry of PUPR was dominated by infrastructure development, including the construction of roads, dams and irrigation networks. If in the coming years the spending of the Ministry of PUPR can be changed to the scheme using PBS, then the PUPR Ministry's spending budget can be diverted to spending for other Ministries/Institutions (Ramadayanti, Mainata, & Pratiwi, 2017). Thus, there is optimization of the allocation of state revenues. State Sukuk as a relatively new Islamic financing instrument has a promising future as part of the fiscal sector in Indonesia. The existence of SBSN in fiscal policy is not a competitor that weakens the pre-existing Government Bonds. In fact, SBSN has further strengthened the government's ability to finance the budget deficit (Hariyanto, 2017). The government can focus on issuing SBSN for project financing in the State Budget, while SUN is optimized for general financing. The existence of SBSN gives the government many choices in determining a combination of financing instruments so that it can minimize or even eliminate debt costs.

Conclusion
The issuance of SBSN or State Sukuk has functioned optimally as one of the instruments used to finance the state budget deficit and government project development. SBSN issued by the government uses several contracts and types to expand the reach of investors and increase government project financing. The increase in the number of SBSN issued each year does not only function as an instrument for financing the state budget deficit, but also as a catalyst for Indonesia's economic growth. In addition to the benefits for the Indonesian economy, the issuance of SBSN also encourages the growth of the national Islamic finance industry and adds alternative Islamic investment instruments for the public.