Delving into Sukuk and Crypto: Tradition vs New Technology
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Delving into Sukuk and Crypto: Tradition vs New Technology

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Delving into Sukuk and Crypto: Tradition vs New Technology

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Until now, there have been various types of investment instruments offered with various benefits, one of which is sukuk. Basically, sukuk, or what is often referred to as “sharia bonds,” is a financial instrument that has received a lot of attention in the world of global investment.

This investment instrument has its origins in the principles of Islamic sharia, which prohibit usury (interest) and transactions that contain elements of speculation or uncertainty.

Sukuk have several advantages that make them important in the investment context, including that they are formed in accordance with the principles of Islamic sharia, so they are attractive to Muslim investors who want to invest in a way that is in accordance with their beliefs.

In addition, investing in sukuk can help investors diversify their portfolios because sukuk can represent various economic sectors, including real estate, infrastructure, energy, and others.

It should be noted that the link between sukuk and the crypto ecosystem is becoming increasingly important with the development of blockchain technology and crypto assets. So, how does sukuk relate to the crypto ecosystem?

So, to understand more about what sukuk are, the types and benefits, whether crypto and sukuk can be combined, and whether it is possible to use crypto in sukuk, see the full review below.

What are Sukuk?

Apa Itu Sukuk?

Basically, a sukuk is a certificate of ownership that gives the holder the right of ownership over a certain asset or project that conforms to sharia principles. In this case, the sukuk holders share the risks and profits associated with the asset or project.

Among the fundamental principles on which sukuk are based is the prohibition of usury. That is, sukuk do not generate income in the form of interest but are based on the sharing of risks and profits between the issuer and the holder of the sukuk.

In a sukuk, the holder shares in the profits generated from the project or assets backed by the sukuk.

Another principle is that sukuk must be backed by substantial assets that have real value. For example, a sukuk can be backed by assets such as real estate, infrastructure, or business projects that have the potential to generate income.

Then, sukuk transactions must avoid elements of speculation or excessive uncertainty. That is, investment in sukuk must be based on reasonable projections of income and risk.

Another fundamental principle is the prohibition of haram activities. This means that sukuk cannot be used to support or finance activities that are prohibited by Islamic principles. For example, sukuk may not be used to support the alcohol industry, gambling, or weapons production.

It should be noted that sukuk has a number of important reasons for being an attractive investment instrument, one of which is that it enables Muslim investors to invest in a manner that complies with Islamic sharia principles.

This is, of course, important for those who want to ensure that their investments do not involve usury. Apart from that, sukuk can also help investors diversify their portfolios. Because sukuk can be backed by different types of assets, they allow investors to reduce risk by spreading their investment across different sectors of the economy.

On the other hand, many sukuk offer attractive fixed-income payments to investors seeking regular income, making them a good alternative to investing in stocks, which can be more volatile.

Sukuk are often used to support important infrastructure projects such as roads, airports, power plants, and others. By investing in sukuk, investors also play a role in economic and social development.

Apart from that, the sukuk market is spread across various countries, including countries with developing economies. It allows investors to geographically diversify their portfolios.

Types of Sukuk and Their Benefits

Sukuk are Islamic financial instruments that have different types and characteristics. The two types of sukuk that will be discussed below are retail sukuk and savings sukuk, along with their characteristics and advantages.

Basically, these two types of sukuk play an important role in facilitating investments that comply with sharia principles and provide a variety of options for investors with varying levels of capital and investment preferences. The following is an explanation regarding retail sukuk and savings sukuk, namely:

1. Retail Sukuk

Retail sukuk, also known as retail government sukuk, is a sharia investment product offered by the government to the Indonesian people as an investment instrument that is safe, easy, affordable, and provides profits.

Through this one instrument, the government offers direct opportunities for the community to support Indonesia’s development. Investors will later receive a fixed amount of interest and be paid monthly. The characteristics of retail sukuk are as follows:

  • For the people/Indonesian citizens (WNI)
  • Investments are managed using Sharia principles.
  • Orders start at IDR 1 million.
  • The retail sukuk tenor is 3 years.
  • The benefits are still paid monthly.
  • Retail sukuk can be traded on the secondary market among local investors.

Meanwhile, some of the advantages of investing in this one sukuk are:

  • The state guarantees the principal in return.
  • Can be traded in the secondary market among local investors.
  • The rate of return is competitive, even higher than the average deposit interest rate
  • from state-owned enterprises (BUMN) banks.
  • Investors can invest in this investment instrument for only IDR 1 million.
  • The rate of return is fixed, namely 5.47% per year.
  • Investing in this sukuk means helping finance the country’s development.
  • The reward is paid monthly.
  • Investing in retail sukuk means having access to investments that comply with sharia principles.

2. Savings Sukuk

Savings sukuk are a type of government securities (SBN) for Indonesian citizens that are managed using sharia principles. This type of sukuk is like bank savings or deposits but has far more advantages. Some of the characteristics of savings sukuk are:

  • Investment management is in line with Sharia principles.
  • Orders start at IDR 1 million.
  • The rewards are floating, with minimal rewards.
  • Tenor of 2 years.
  • Early redemption facilities are available.
  • Not for sale or transfer.

Savings sukuk have a number of advantages, including:

  • Principal and compensation are guaranteed by the state.
  • Early redemption without any redemption fee from the government.
  • The reward rate is competitive, even higher than the average deposit interest rate from state-owned banks.
  • Easy access to electronic system (online) transactions
  • The returns float in accordance with the development of the BI 7-Day Reverse Repo
  • Rate, with a guaranteed minimum return (floor).
  • Investing in this sukuk means being directly involved in the country’s development.
  • Its products are in line with Sharia principles.
  • The reward is paid monthly.

Can Sukuk and Crypto Be Together?

Sukuk and blockchain technology have the potential to come together in several ways that could benefit both markets. The potential for this merger creates new opportunities in the Islamic financial market and presents various benefits.

Here are some potential combinations of Sukuk and blockchain technology that you need to know, namely:

1. Sukuk Tokenization

One of the main ways in which Sukuk and blockchain can come together is through Sukuk tokenization. Sukuk tokenization is the process of converting conventional Sukuk ownership into a blockchain-based digital token. This token represents ownership of the asset or project supported by the Sukuk.


Global Access: Sukuk Tokenization enables Sukuk investment by individuals and institutional investors around the world without having to go through traditional financial infrastructure.

Liquidity and Transparency : By being traded on the blockchain platform, Sukuk tokens can increase market liquidity and transparency. Investments can be traded more easily and quickly.

Low Costs: Blockchain infrastructure can reduce administrative and intermediary costs in the process of issuing and trading sukuk.

2. Blockchain-Based Sukuk Issuance

Blockchain-based direct issuance of Sukuk is another step that could integrate blockchain technology with Islamic financial instruments. In this case, Sukuk is issued as a smart contract on the blockchain network.


Transparency and Security: Sukuk transactions are monitored and recorded in a decentralized ledger, increasing transparency and security.

Automated Sharia Compliance: Smart contracts can be programmed to ensure that Sukuk transactions always comply with sharia principles. This reduces the risk of non-compliance.

3. Project-Based Crypto and Sukuk Integration

Project-based sukuk are instruments that are supported by real projects, such as infrastructure or renewable energy.

The integration of blockchain technology could allow Sukuk holders to access more direct benefits from the project via digital tokens, for example, sharing profits from project revenues tracked via the blockchain.


Faster Income : Sukuk holders can receive income faster and more transparently because the income is recorded directly on the blockchain.

Measurable Income : The use of blockchain allows for more accurate monitoring and tracking of the performance of Sukuk-backed projects. This gives the Sukuk holder greater visibility on their investment.

Possible Use of Crypto in Sukuk

Kemungkinan Penggunaan Kripto dalam Sukuk

The use of crypto in Sukuk is an interesting idea by nature, but it also has challenges that need attention.

The reason is, this has the potential to increase market efficiency and accessibility but also requires careful adjustments and problem solving to meet sharia requirements and minimize risks.

Some of the possible uses of crypto in sukuk are as follows:

  • Payment of Interest or Dividends: Crypto can be used to pay interest or dividends on sukuk to sukuk holders. This can be done through crypto tokens which represent ownership of the sukuk. When interest or dividend payments are due, the sukuk holder will receive crypto tokens in return.
  • Transparency and Efficiency: The use of cryptography can increase transparency and efficiency in the payment of interest or dividends. Transactions in the blockchain can be automatically recorded and made visible to all interested parties.
  • Global Access: Crypto is a digital asset that is accessible to individuals around the world. This allows international investors to participate in the sukuk market without geographical barriers.

Meanwhile, the advantages of using crypto in sukuk include:

  • Small Transaction Fees: The use of crypto can reduce administrative costs associated with the payment of interest or dividends on sukuk. This includes transfer fees, currency conversion fees, and intermediary fees.
  • Transaction Speed: Cryptographic transactions can be processed more quickly than traditional methods, allowing for more timely interest or dividend payments.
  • Transparency and Security: Blockchain technology provides a high level of transparency and security in tracking and recording transactions. This can increase the confidence of the sukuk holders.

On the other hand, here are some of the challenges of using crypto in sukuk, namely:

  • Sharia Compliance: One of the main challenges is ensuring that the use of cryptocurrencies in Sukuk complies with Islamic principles. This involves provisions on what is considered a sharia-compliant digital currency and how to manage crypto tokens in accordance with sharia principles.
  • Crypto Volatility: The value of cryptocurrencies like Bitcoin or Ethereum tends to be very volatile. It can be challenging to establish a fixed rate of interest or dividends on crypto assets.
  • Regulation: Regulations regarding crypto differ in different countries, and some governments are still trying to regulate it. These regulatory differences could become an obstacle to the use of crypto in Sukuk, especially if the authorities do not recognize crypto as a valid asset.
  • Market Acceptance: Market acceptance of the use of crypto in Sukuk is also a consideration. Some investors may feel uncomfortable with digital currencies and prefer traditional assets.


In conclusion, sukuk and the crypto ecosystem have the potential to come together in several ways that could benefit both markets. This potential merger creates new opportunities in the Islamic financial market and presents various benefits.

Examples of some of the potential or opportunities from this relationship include sukuk tokenization, blockchain-based sukuk issuance, and project-based crypto and sukuk integration.

Basically, it is important to keep abreast of developments in these two areas because the interaction between sukuk and the crypto ecosystem can bring significant changes to the Islamic financial market.

By keeping up with the latest news and developments in these two areas, individuals and entities can make better investment decisions and take appropriate steps as markets change.

Are You Interested in Crypto Investments?

So, now you understand what sukuk are, the types and benefits, whether crypto and sukuk can be combined, and whether it is possible to use crypto in sukuk.

Next, if you are interested in investing in crypto, it’s a good idea to know that the crypto market is very volatile. This means that the price can fluctuate quickly and greatly in a short period of time.

Therefore, it is important to use an official and trusted crypto investment platform to maintain the security of investments made, one of which is INDODAX.

At INDODAX, you can invest in crypto easily and from the palm of your hand via a smartphone application.

You also need to know that currently at INDODAX there is a new feature called Staking or EARN. With this feature, you can lock the crypto assets you own and get rewards from this activity. The concept itself is similar to a savings deposit that earns interest.

Well, what are you waiting for? Come on, start investing in crypto now at INDODAX!


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