Indonesia’s Shariah Venture Capital Scheme to Be a Source of Funding for MSMEs and Start-Ups

Speaking at the Shariah Venture Capital Webinar held in Indonesia on the 21st of October 2021, Ventje Rahardjo, Executive Director of the National Islamic Finance Committee (KNEKS) said the funding of Micro, Small and Medium Enterprises (MSMEs) and startups could be channelled through the non-bank financial industry of which, an option is the Shariah venture capital scheme.

Why it Matters?

Explaining further, Ventje said Islamic venture capital companies (PMVS) operate in accordance with Islamic laws, on equity financing, applying the principle of profit sharing, which differs from conventional companies. Suggesting that financing research and development of MSMEs and start-ups with the focus on Halal businesses would be a viable option for PMVS, Ventje co...