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

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

Authors
Akhmad Affandi Mahfudz1, *, Afife Rahma Ahsanti1, Helmy Fauzy Ahmad1
1University of Darussalam Gontor, Ponorogo, Indonesia
*Corresponding author. Email: affandi@unida.gontor.ac.id
Corresponding Author
Akhmad Affandi Mahfudz
Available Online 11 January 2024.
DOI
10.2991/978-94-6463-346-7_15How to use a DOI?
Keywords
Securities Crowdfunding; Regulatory Framework; Shariah Perspectives; Shariah Disputes
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.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the Conference on SDGs Transformation through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
11 January 2024
ISBN
10.2991/978-94-6463-346-7_15
ISSN
2352-5428
DOI
10.2991/978-94-6463-346-7_15How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Akhmad Affandi Mahfudz
AU  - Afife Rahma Ahsanti
AU  - Helmy Fauzy Ahmad
PY  - 2024
DA  - 2024/01/11
TI  - Shariah Securities Crowdfunding Platform in Indonesia: An Appraisal Based on Regulatory Framework and Shariah Perspectives
BT  - Proceedings of the Conference on SDGs Transformation through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023)
PB  - Atlantis Press
SP  - 75
EP  - 79
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-346-7_15
DO  - 10.2991/978-94-6463-346-7_15
ID  - Mahfudz2024
ER  -