HASBLE Card : Innovation on Company Funding Using Shari’ah Venture Capital toward Halal Industry in Indonesia

Abstract

The growth of the Muslim population in the world is the main driver of growth for global halal products. In Indonesia, Law No.33 of 2014 on the Guarantee of halal products provides significant opportunities for the development of innovative products given the potential of huge Indonesian Muslim population. In the process, requirements to use halal certification in trade as mandated by the national law brings about a dilemma to the halal industry players as well as micro, small, and medium enterprises (SMEs). The problem of capital and funding are the key issues. Stakeholders are faced with the problems of production and sustainability, procurement of equipment and materials production, marketing, and internal reinforcement. This qualitative paper offers a review of the literature. The purpose of this paper is to understand how the model of innovative funding through Shair’ah venture capital firms spur the growth and development of the halal industry. Halal Sustainable (HASBLE) card is an innovative model of mudharabah and musyarakah transaction, which are realized in a sustainable funding by Shair’ah venture capital firms to halal industry players. The allocation of the profit-sharing is based on the contract by setting some parts aside in the card as productive deposit. These deposits will be managed as a productive stimulus funds for the maintenance of halal certification, training and business assistance, and the balance of HASBLE card itself. HASBLE card is innovative model that has sustainable funding agreement involving several stakeholders in order to improve productivity, growth, and the existence of halal products in the global trade arena.