MATEC Web Conf.
Volume 270, 2019The 2nd Conference for Civil Engineering Research Networks (ConCERN-2 2018)
|Number of page(s)||8|
|Section||Infrastructure Engineering and Management|
|Published online||22 February 2019|
Islamic financing for infrastructure projects and its implementation barriers
Department of Civil Engineering, Faculty of Engineering, Universitas Indonesia, Depok, Indonesia
2 School of Property, Construction and Project Management, RMIT University, Melbourne, Australia
3 School of Civil Engineering and Built Environment, Faculty of Science and Engineering, Queensland University of Technology, Brisbane, Australia
* Corresponding author: firstname.lastname@example.org
Research on Islamic project financing in infrastructure conducted predominantly in Islamic countries and developed countries showed its many benefits. This particular research focuses on Indonesia. As a developing country with a majority of Muslim population, it is reasonable to expect that Islamic project financing may also be a suitable option for financing alternatives in Indonesian infrastructure development. This paper aims to identify the barriers to implementing Islamic financing for infrastructure project development. A Delphi study was conducted to gather the views and opinions of an expert panel. The study found that the main barriers to implementing Islamic project financing are a lack of understanding of the Islamic project financing concept, a resistance to using Islamic finance, and investors’ behavior and characteristics, such as a profit-oriented mind-set and risk avoidance, which might affect the infrastructure stakeholders’ preference for using a sharia-compliant scheme.
© The Authors, published by EDP Sciences, 2019
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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