Impact of Macroeconomics on Corporate Sukuk Yield in Indonesia

Abstract

This research aims to investigate the impact of macroeconomics variables on corporate sukuk yield in Indonesia. The method used is the VECM (Vector Error Correlation Model). The samples in this study were the entire company which issued the sukuk period from January 2014 to December 2018. The results of this research show that on the long-run variable BI Rate, IPI, World Oil Price (Brent and WTI), and exchange rate are significant effect on gross yield. Investors and corporations are expected to see macroeconomic conditions as a matter of consideration in funding and investment decision making. The government is expected to be able to control macroeconomic conditions especially a significant variable on the yield because it can affect the investment climate in the capital market especially in the investment related to Sukuk.