Indonesia holds strong potential in the Sharia economy and halal industry. The development of Sharia-based micro, small, and medium enterprises (MSMEs) is underway to help them compete globally. The National Committee for Sharia Economy and Finance (KNEKS) has launched a program to connect Sharia startups with investors. A total of 20 startups have passed selection and curation based on the criteria of venture capital firms and relevant policymakers.

KNEKS Connects Sharia Startups with Investors

"We have two vision categories for determining which startups receive funding. First, the early-stage category, which may receive between IDR 400 million and IDR 5 billion. Then, the growth-stage category, which ranges between IDR 5 billion and IDR 50 billion," said Helma Agustiawan, Deputy Director of Sharia Business and Entrepreneurship, during the Halal Start-Up Demo Day 2025 in Jakarta.

Investment Range Involves Sharia-Compliant and Conventional VCs

Helma explained that the funding scheme involves collaboration with the Indonesian Venture Capital Association for Startups (Amvesindo) and several Sharia banks in the country.

"We invite our friends from Amvesindo. There are venture capital firms that are Sharia-compliant and non-Sharia. Among the Sharia ones, there are seven licensed by the Financial Services Authority (OJK), such as BTPN Ventura Syariah. Their model is a venture capital corporation (VCC), essentially capital," she said.

Government Collaboration Enhances Business Matching

The KNEKS approach includes startup incubation, funding, and capacity building. KNEKS also partners with the Ministry of Cooperatives and SMEs, the Ministry of Communication and Digital Affairs, the Ministry of Creative Economy, and Bank Indonesia.

"In this Sharia financing month, together with our friends from Bank Indonesia, we have a business matching platform for financing. MSMEs are often confused about where to apply for funding," she explained.

Funding Schemes Include Zakat, CSR, and Commercial Models

Startups have access to various funding schemes. These include zakat, people’s business credit (KUR), corporate social responsibility (CSR), semi-commercial, commercial, and even initial public offering (IPO) levels.

"MSMEs just need to enter their data, and the platform will match them. For example, what percentage is suitable for zakat, what fits the CSR scheme, and what qualifies as commercial," she said.

PHOTO: KNEKS

This article was created with AI assistance.