Indonesia Conference Directory

The issuance of Law No. 1 of 2016 concerning Guarantees which became effective in 2019, provides greater market opportunities for the guarantee industry, including sharia guarantee companies. However, Islamic guarantee companies still face a number of challenges. Based on OJK statistics related to the Indonesian guarantee institution as of June 2018, there were 2 players in sharia private guarantees with total assets of Rp1.04 trillion. Assets of sharia guarantee companies contributed 5.72% to the total assets of the guarantee industry amounting to Rp18.12 trillion. Therefore, sharia guarantee companies have the opportunity to assist in the capital of micro, small and medium enterprises (MSMEs), whose number in Indonesia was 55,206,444 Units. Furthermore, SMEs was encouraged to take advantage of the existence of Law Number 1 of 2016 concerning Guarantees. Because MSMEs usually faced obstacles, both internal and external. The partnership between sharia guarantee companies and MSMEs was expected to help the national and national economy.