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Shariah Securities Crowdfunding Platform in Indonesia: An Appraisal Based on Regulatory Framework and Shariah Perspectives

In: Proceedings of the Conference on SDGs Transformation Through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023)

Author

Listed:
  • Akhmad Affandi Mahfudz

    (University of Darussalam Gontor)

  • Afife Rahma Ahsanti

    (University of Darussalam Gontor)

  • Helmy Fauzy Ahmad

    (University of Darussalam Gontor)

Abstract

This paper explores the practices of Shariah Security Crowdfunding (SCF) based on existing Indonesian regulation of POJK Number 57 of 2020 and examines its relevance to derive a Shariah point of view on its operation. This paper employs a qualitative approach by undertaking library research on the relevant pedigree of security crowdfunding platform practices in Indonesia based on current regulation and Fatwa (verdict) of DSN-MUI (National Shariah Board-Indonesian Religious Council). POJK 57 and Sharia-compliant principles were taken as a benchmark to measure and produce legal and Shariah perspectives for all parties involved in SCF practices. This study finds that the existing Indonesian regulation on SCF has fulfilled the principles of legal and Sharia aspects. However, some Shariah issues were found in some cases from the issuer’s perspective in the event of default cases, solution of early settlement, change of objects, and ownership that might wreak Shariah resolution to mitigate legal and Shariah disputes. Shariah’s resolution of these issues are formidable work by platform providers and is regarded as a novelty of this study. Therefore, this study implies significant policy direction by relevant regulators to mitigate legal and Shariah risks.

Suggested Citation

  • Akhmad Affandi Mahfudz & Afife Rahma Ahsanti & Helmy Fauzy Ahmad, 2023. "Shariah Securities Crowdfunding Platform in Indonesia: An Appraisal Based on Regulatory Framework and Shariah Perspectives," Advances in Economics, Business and Management Research, in: Imam Abrori & Indrian Supheni & Muhammad Mudhofar & Wahyuning Murniati & Nico Irawan & Arfan Ikhsan (ed.), Proceedings of the Conference on SDGs Transformation Through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023), pages 75-79, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-346-7_15
    DOI: 10.2991/978-94-6463-346-7_15
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    Cited by:

    1. Akhmad Affandi Mahfudz & Khoirul Umam & Syahrul Ihsan, 2026. "Developing productive strategies for Shariah‐compliant crowdfunding industry in Indonesia," Review of Financial Economics, John Wiley & Sons, vol. 44(1), January.

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