Journal of Economics, Finance and Management Studies ISSN (print): 2644-0490, ISSN (online): 2644-0504 Volume 6 Issue 2 February 2023 Article DOI: 10.47191/jefms/v6-i2-03, Impact Factor: 6.274 Page No. 574-579 JEFMS, Volume 06 Issue 02 February 2023 www.ijefm.co.in Page 574 The Effect of Inflation Rate and the Indonesian Sharia Stock Index (ISSI) on the Growth of Corporate Sukuk in Indonesia (2016-2021 Period) Mahrus Sholeh 1 , Vivin Maharani Ekowati 2 1,2 Master of Sharia Economics, UIN Maulana Malik Ibrahim Malang, Indonesia ABSTRACT: Long-term securities that are based on sharia principles are also called corporate tribes. This corporate sukuk is issued by issuers to sharia bondholders who then oblige the issuer to pay income to sharia bondholders in the form of profit sharing or margin and repay the bond funds when the time is due. One of the factors that can affect the growth of sukuk are macroeconomic variables, namely inflation and the Islamic stock index (ISSI). This study aims to determine how the influence of inflation and the Indonesian Islamic stock index (ISSI) on the growth of corporate sukuk in Indonesia partially or simultaneously. The type of research used is descriptive research. Then the data used in this study is secondary data obtained from the documentation of the financial services authority (OJK). Data analysis in this study used multiple linear regression using SPSS. The results of this study show that the inflation rate and the Islamic stock index (ISSI) simultaneously affect the growth of corporate sukuk. Partially the inflation rate has a significant effect on the growth of corporate sukuk, and the Indonesian Sharia Stock Index Variable (ISSI) has an insignificant effect on the growth of corporate sukuk. KEYWORDS: Inflation, Indonesia Sharia Stock Index (ISSI), Corporate Sukuk. I. INTRODUCTION Indonesia has a Muslim-majority population with a massive market for developing the Islamic finance industry, especially sukuk. So that if a company issues sukuk, the company has a broader market potential because it has the opportunity to get Muslim and non-Muslim investors. With a large number of sukuk issued by the company, the company can increase productivity and expand its business which has an impact on increasing company income and the prosperity of the wider community. Therefore, economic growth will increase, and the market for the Islamic financial industry will be even more significant due to the increased issuance of sukuk (Pujiningsih & Dahruji, 2021) . In Indonesia, sukuk is overgrowing. It was started by PT Indosat Tbk, which issued the sukuk for the first time in 2002 with an Ijarah contract and from this issuance (Hasanah, 2019), PT Indosat Tbk obtained Rp. 175 Billion. In addition, the issuance of sukuk was also followed by other companies such as PT Adhi Karya, PLN and others. 9.9 11.9 15.7 21.3 29.83 30.35 16.66 20.43 26.39 36.12 48.24 55.15 0 100 2015 2016 2017 2018 2019 2020 Chart Title Outstanding Value (IDR Trillion) Accummulated Issuance Value (IDR Trillion) Poly. (Outstanding Value (IDR Trillion)) Figure 1.Growth of Corporate Sukuk Year Period 2016-2021 Source: OJK, 2021