Time to mobilise zakat, retail sukuk for Indonesia’s COVID-hit MSMEs – KNEKS official
JAKARTA - An official of Indonesia’s National Committee for Islamic Economy and Finance (KNEKS) says that Islamic social finance instruments and domestic retail sukuk are more sustainable financial support alternatives for COVID-hit MSMEs than loans from multilaterals such as the Asian Development Bank.
Indonesia’s government last week announced a 405.1 trillion rupiah ($24.65 billion) financial package to support households and businesses affected by the coronavirus pandemic. It has not indicated that it will reach out to multilateral lenders for financing.
Dr. Sutan Emir Hidayat, KNEKS’ Director of Education and Research told Salaam Gateway that considering the important role micro and small enterprises play in the economy, the government should start a “massive effort” to collect and distribute Islamic social finance funds to help them through the pandemic.
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