Strategies for Utilizing Surat Berharga Syariah Negara in Financing Educational Infrastructure Construction Projects in Indonesia

Abstract

Indonesia's economic growth drives infrastructure development as outlined in National Medium-Term Development Plan 2020–2024. However, a funding gap of USD 164.5 million exists between infrastructure investment needs (USD 391.7 million) and State Budget allocations (USD 144.9 million). To narrow this gap, the government utilizes Surat Berharga Syariah Negara (SBSN) as an alternative financing source for construction projects. This research aims to identify factors influencing SBSN utilization, review its implementation and evaluation, and develop strategies for SBSN utilization. The research was conducted by using mixed-method approach with quantitative analysis using Internal Factor Evaluation (IFE), External Factor Evaluation (EFE), and SWOT matrices along with qualitative analysis through the interview with stakeholders involved in one of educational infrastructure construction project at a major university in Indonesia. SBSN primary strength is the guarantee of fund availability throughout the contract period, which ensures sustained financing during project execution. Conversely, its notable limitation is the funding restriction confined exclusively to asset acquisition expenditures, thereby limiting its applicability for other financial needs. However, the implementation of SBSN faces challenges, such as regulatory ambiguities, ineffective coordination in project monitoring and control, and insufficient understanding among involved human resources. Proposed strategies include enhancing monitoring and evaluation systems, clarifying regulations, and providing training and capacity building for relevant stakeholders to utilize SBSN in construction projects.