LPDB Allocates Rp 600 Billion in Special Sharia Loans

INDUSTRY.co.id - Jakarta - The Institute for Managing Revolving Funds of Cooperatives and Micro, Small and Medium Enterprises (LPDB KUMKM) has been active in improving financial inclusion for MSMEs. One way to do this is to make sharia financial institutions as strategic partners in channeling revolving funds, especially in the region.

"This year, LPDB KUMKM has prepared a revolving fund of Rp 600 billion to be allocated to sharia financing from a total of Rp 1.5 trillion. Until the beginning of August it has been absorbed from Islamic financing of Rp 250 billion. The rest is targeted to be realized until the end of the year, "said Director of Islamic Finance LPDB KUMKM, Jaenal Aripin, Friday (18/08/2017).

He said the sharia financing growth is unusually high from 5, 10 and now nearly 20 percent. Therefore, the institution will continue to push for sharia pattern to grow rapidly. In addition to safe, he said, sharia-based KUMKM is very cautious in managing its business.

"We will speed up the Islamic finance industry in the region in order to utilize LPDB funds so that absorption can be optimal. We are optimistic, "he said

He added that the business nature of Sharia-based KUMKM is the sharing of mutual benefits, does not apply the system of interest, and prohibits the practice of usury in accordance with Islamic Shari'a.