The Concept of Rwa Bhineda on Investment Interest in Green Sukuk by Considering Environmental Awareness

Abstract

Green sukuk is a sharia-based financial instrument used by the government to finance
green projects. The number of green sukuk investors has continuously increased since
the beginning of the green sukuk issuance, in 2019. This is inseparable from the
attractive profit sharing and very low risk. In the Hindu concept, the term Rwa
Bhineda is known, which emphasises the existence of two things that are
contradictory but always side by side, as is the case with profit sharing and risk in
green sukuk. This research aims to examine the effect of profit sharing and risk
partially on investment interest in green sukuk and examine the moderating effect of
environmental awareness. The population used is all green sukuk investors with a
sample size of 100 green sukuk investors. The data collection method uses a
questionnaire. The data analysis technique used is Structural Equation Modeling with
Partial Least Squares (SEM PLS). The results showed that profit sharing and
environmental awareness has a positive and significant effect on green sukuk
investment interest, risk has no effect on investment interest, environmental
awareness weakens the effect of profit sharing on investment interest in green sukuk
with negative direction but environmental awareness is not able to moderate the
effect of risk on investment interest in green sukuk. This research combines the
concept of sharia in Islam and the concept of rwa bhineda in Hinduism, making it
interesting to do research.