Savings Sukuk and Retail Sukuk Are Both Profitable: What's the Difference?

Interest among the public in sharia-based investment instruments has continued to increase in recent years. One instrument that has garnered significant interest is the retail State Sukuk issued by the government through the Ministry of Finance (Kemenkeu). Among the various types of Sharia State Securities (SBSN), two products that are most familiar to the public are Retail Sukuk (SR) and Savings Sukuk (ST). These instruments are issued using a wakalah contract structure. In this scheme, investors grant authority to the government to manage the investment funds in assets or projects that form the basis of the sukuk issuance. The returns are paid monthly until maturity, and both principal and returns payments are guaranteed by the state through legislation. Although they share many similarities, Retail Sukuk and Savings Sukuk have several fundamental differences, ranging from investment tenors, types of returns, to the flexibility of fund withdrawals. The first difference lies in the investment period or tenor. According to the Ministry of Finance’s official website, Retail Sukuk generally has tenors of three years and five years. The next difference is in the type of coupon or return provided to investors. Retail Sukuk uses a fixed-rate return system. This means investors will receive the same coupon amount each month from the time of purchase until maturity.