Sukuk Issuances via Crowdfunding Emerging in Indonesia; Pending Approval from the Financial Services Authority

From Sukuk issuance through Securities Crowdfunding (SCF) – an information technology-based crowdfunding service platform – in Indonesia is expected to be implemented in 2021, according to local media reports. Currently, issuances through SCF cannot be carried out in Indonesia due to constraints on the permit from Indonesia’s Financial Services Authority (OJK).

OJK Deputy Director of Shariah Capital Market, Arief Machfoed, indicated that to date no special Fatwa has been issued by the National Shariah Council regarding SCF. Arief stated that a Fatwa related to SCF is a necessity and will be used as a guide in applying Shariah principles to SCF.

Arief explained that in addition to the Fatwa; the OJK is drafting the SEOJK - ‘Guidelines for Determ...