sukuk for microfinance through linkage program: case study in indonesia
TRANSCRIPT
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7/21/2019 Sukuk for Microfinance through Linkage Program: Case Study in Indonesia
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THE 10thINTERNATIONAL CONFERENCE ON
ISLAMIC ECONOMICS AND FINANCE (ICIEF 10th)
Institutional Aspects of Economic, Monetary and Financial Reforms
23-24 March 2015, Khamad bin Khalifa University, Doha, Qatar
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Title:
SUKUK FOR MICROFINANCE THROUGH LINKAGE PROGRAM:
CASE STUDY IN INDONESIA
By:
Khairunnisa Musari
Lecturer at IAIN Jember
ABSTRACT
One of the thriving institutional concept in Islamic finance and economics is sukuk. With
regard to financing activities, sukuk is claimed to be a better financing alternative than debt
financing because of its elements of investment cooperation, sharing of risk, and engangement
of assets or the real project as its underlying issuance. The biggest challenge of sukuk today is
how sukuk can link financial sector with the real sector especially to utilize excess in the
economy. In Indonesia, sukuk has implemented as a microfinancing instrument for micro-
economic activity in real sector. This paper attemps to: (1) Introduce the sukuk as a local
wisdom of Association of Farmer Groups in Indonesia to finance the working capital forcocoa farmers; (2) Construct the scheme of sukuk for microfinancing as an Islamic financing
instrument through a linkage program between Islamic banks and Islamic Microfinancing
Institutions; (3)Propose an institutional arrangements for authority and policy makers to assist
a regulatory framework for the development of Islamic microfinance. Finally, this study
proves that sukuk can position as tool for managing the lack and excess of liquidity. Sukuk
has an ability to be a bridge linking financial sector and the real sector and encourages Islamic
banking to be more grounded and can substantially assist the needs of the community.
Keywords: Islamic bank, Islamic microfinance, microfinance institution, linkage program.
JEL Classification:G21, G23, 017
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