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Sukuk in Indonesia: A Legal Review (continued..)
Ijarah Bond
• Sukuk Ijarah
Besides Mudarabah bond, Sukuk Ijarah
has been globally used. Sukuk Ijarah is
different from Ijarah bond as it is known
in Indonesia. This matter will be further
described hereunder.
One of the examples of Sukuk Ijarah is
the issuance of Qatar Global Sukuk by
the Qatar government to build a medical
center known as Hamad Medical City. The
government of Qatar, together with Qatar
International Islamic Bank and HSBC,
fi rst established a joint venture company
(joint venture special purpose vehicle/SPV
company), which then purchased some
plots from the Qatar government.
The SPV company sold the right to use
the land to the investors by issuing Sukuk.
The money from the sale was used to build
Hamad Medical City. The land was leased
to the government of Qatar, which is obliged
to pay the leasing fee (Ujrah). Ujrah was
then distributed by the SPV company to
holders of Qatar Global Sukuk.
In the issuance of Qatar Global Sukuk as
mentioned above, the following contracts
were involved:
1. Contract of Ijarah (lease) between
the Qatar government and the
SPV company as representative
of holders of the Qatar Global
Sukuk;
2. Contract of al-bay’ (sale purchase)
between the Qatar government
and the SPV company as
representatives of holders of
Qatar Global Sukuk;
3. Contract of Wakalah between
holders of Qatar Global Sukuk
and the SPV company.
Since at the end of the Sukuk period,
land ownership will further be transferred
to the Qatar government, the contract of
Ijarah being made shall be the contract of
Ijarah muntahiya bi at-tamlik (Ijarah with
option to buy the ownership at the end of
the Ijarah period). In this matter, the land
utilized for Hamad Medical City is not used
as a guarantee to Sukuk holders since
within the period of Sukuk, the land is
actually under the ownership of the Sukuk
holders through the SPV company, and the
ownership will only be further transferred
at the end of the Sukuk period after the
option to own is exercised by the Qatar
government.
“The mechanism used in
Qatar Global Sukuk will
certainly be impossible if
applied in Indonesia”
• Ijarah Bond in Indonesia
The mechanism used in Qatar Global
Sukuk will certainly be impossible if
applied in Indonesia. Following the sale by
the Qatari government, the landowner is
actually the holder of Qatar Global Sukuk.
The holders of these Sukuk jointly become
the landowners in accordance with the
portion of Sukuk held.
continued....
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