As a source of government financing, the Indonesian government’s retail Sukuk is still not as popular as conventional government bonds. The Indonesian government has issued serial retail Sukuks with the code SR to get funds from retail investors, especially those concerned with Sharia values. Sharia financial literacy is expected to determine the success of this Sukuk. This study fills the gap of previous research on financial literacy by investigating the Sharia financial literacy in investment decisions. This study investigates the descriptive analysis of Sharia financial literacy in Indonesia and its relationship with the prospect of retail Sukuk issued by the Indonesian government. This study surveys 120 prospective investors who have already had an investment in financial securities by investigating their Sharia financial literacy and their intention to buy the Indonesian government Sukuk in the future. This study finds that the Sharia financial literacy of the respondents are relatively low. This low literacy negatively affects their interest in investing in the Indonesian government retail Sukuk. This study also finds that financial knowledge and financial education have a positive relationship with the intention to buy retail Sukuk.
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