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Jakarta Post

Ulema council, OJK to issue fatwa on sharia-based fintech lenders

Ulema council, OJK to issue fatwa on sharia-based fintech lenders Logo of the Indonesian Ulema Council (Courtesy of/the Indonesian Ulema Council)
News Desk
Jakarta   ●   Fri, February 2, 2018 2018-02-02 10:36 1189 2c798a31c212039f000dc5df9c39e96a 4 Business MUI-edict,OJK,fintech Free

The Indonesia Ulema Council's (MUI) sharia division and the Financial Services Authority (OJK) are preparing a fatwa to serve as a legal basis for the operation of sharia-based financial technology (fintech) lending institutions.

The MUI’s sharia division has reviewed a number of contract agreements that will serve as a reference for sharia-based fintech transactions before the fatwa is issued, said MUI sharia division member Adiwirman Karim in Jakarta on Thursday.

"Many non-Muslims are also interested in sharia-based fintech financing. So it has a very large potential market," Adiwarman said as reported by

Following the emergence of conventional fintech lenders, people have started eyeing the potential of the sharia-based fintech industry.

Four sharia-based fintech lending companies are in the process of registering with the OJK.

The planned fatwa follows the emergence of a new sharia-based product from peer-to-peer lending company PT Investree Radhika Jaya.

Since a trial run in November 2017, Investree has disbursed Rp 2.7 billion (US$189,000) in sharia-based financing.

Investree aims to disburse this year a total of Rp 1 trillion in financing, 20 percent of which is sharia-based. (kmt/bbn)