Indonesia’s Komite Nasional Ekonomi dan Keuangan Syariah (KNEKS), or the National Committee for Islamic Economy and Finance, has amped up its support for the country’s MSME and Halal sector with its latest issuance of guidelines for Shariah crowdfunding.
KNEKS partnered with the Financial Services Authority, or Otoritas Jasa Keuangan (OJK), the Ministry of Cooperatives and SMEs, the Halal Product Assurance Agency and the Ministry of Health to launch the Shariah Securities Crowdfunding Literacy Module.
The guidelines are a concrete step towards accelerating Indonesia’s MSME Halal industry by strengthening its capital and increasing its competitiveness, KNEKS said, and are a direct result of a plenary meeting with KNEKS’s partners led by Vice President Ma’ruf Amin.
“There has been a breakthrough in strengthening MSME capital through the issuance of Sukuk and shares via Shariah securities crowdfunding (SCF). To date, there are two SCF operators licensed by the OJK as facilitators for MSMEs to issue Sukuk and Shariah shares, namely Shafiq and Bizhare,” KNEKS said.
To date, there are six MSMEs that have issued Sukuk Mudarabah papers with a total Sukuk volume of IDR8.83 billion (US$615,275). The MSMEs have been fully funded with IDR4.49 billion (US$312,864), the rest, amounting to IDR4.34 billion (US$302,412), is currently being processed.
Through the Shariah SCF initiative, MSMEs have the opportunity to issue Sukuk and/or shares with a nominal value of up to IRR10 billion (US$696,801), a more accessible alternative to issuing on the Indonesia Stock Exchange, whose nominal value is substantially higher.
“The launch of the Shariah SCF literacy module and videographic is expected to be widely used by both practitioners and academics in encouraging MSMEs to issue shares and Sukuk, as well as attract potential investors to support MSME capital,” KNEKS said.