Inclusive Financing Support Crucial to Strengthen Halal Product SMEs
Jakarta — Indonesia’s Ministry of Micro, Small and Medium Enterprises (UMKM) has emphasised that inclusive financing support is crucial to strengthen SMEs specialising in halal products.
Sudaryono R Lamangkona, Senior Advisor to the UMKM Minister for Communications and Inter-Agency Relations, cited the growing interest among small business owners in Sharia-compliant financing to expand their halal product businesses.
“Inclusive financing support that aligns with Sharia principles is an important instrument for strengthening halal product SMEs,” Sudaryono said during a joint statement with the Halal Product Assurance Agency (BPJPH) in Jakarta on Friday.
To this end, Sudaryono stressed the importance of synergy among all stakeholders, including government, banking sector, and relevant industry associations, in supporting SME strengthening through Sharia financing.
“We must work together to build SMEs and drive national economic growth. I hope industry associations will continue to play an active role in educating and promoting the importance of Sharia financing and the strengthening of halal SMEs to the broader public,” he said.
Meanwhile, Mochamad Yut Penta, Director of Sharia National Consumer Bank (BSN), stated that Sharia banks are strategically positioned to strengthen halal product SMEs, particularly through providing equitable financing that adheres to Sharia principles.
“Sharia financing schemes provide more inclusive capital alternatives for SME operators, whilst promoting better business governance,” Penta said.
Additionally, he noted that Sharia banks can integrate financing with business mentoring programmes, ensuring SME operators not only gain access to capital but also benefit from capacity-building support and business sustainability improvements.
Furthermore, Penta said Sharia banks play a role in strengthening the halal ecosystem through collaboration with regulators, certification bodies, and other stakeholders.
“Financing support for halal certification processes, product development, and market expansion are important components in enhancing the competitiveness of halal product SMEs,” he said.