TOWARDS SHARIA COMPLIANT MARKET SOUNDING PRACTICES IN PUBLIC-PRIVATE PARTNERSHIPS: EVIDENCE FROM INDONESIA
DOI:
https://doi.org/10.21837/pm.v24i44.2275Keywords:
Investor, Market sounding, Public-private partnership, Sharia PPP, TransparencyAbstract
This study examines whether Sharia principles emphasising transparency and full disclosure can be operationalised within market sounding practices in Public-Private Partnership (PPP) schemes. The study adopts a qualitative research design based on semi-structured interviews with 21 expert stakeholders from government institutions, financial organisations, private investors, advisory bodies, and Sharia authorities. Data were analysed using thematic analysis to identify recurring patterns and to develop a conceptual framework. The findings reveal a strong convergence among stakeholders that transparency and full disclosure are fundamental requirements under Sharia and are consistent with principles of good governance in PPPs. However, practical limitations, including limited project readiness, institutional capacity constraints, and the need to preserve competitive innovation, restrict the feasibility of full disclosure at early stages. The study is limited to the Indonesian context and expert perspectives. Future research may incorporate comparative studies across jurisdictions and quantitative validation of impacts on investor participation. This study contributes to the emerging discourse on Sharia PPPs by proposing market sounding based on transparency and full disclosure as a foundational mechanism bridging Sharia principles and conventional PPP practices.
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