The article argues that Indonesia is using zakat and waqf as first-loss risk capital to help micro, small and medium enterprises (MSMEs), which make up more than 90% of firms in developing economies, build repayment records and become bankable. Under this model, social funds absorb early losses and pay for training, letting businesses later move to ordinary financing from Islamic banks. The approach is being embedded in a two-tier national and regional structure, with KNEKS and provincial committees, and joint guidelines that place Sharia economic targets in provincial development plans. Bank Indonesia's 3SP program links producers, financing and literacy efforts on the ground. The author says the aim is a more resilient domestic funding channel and a replicable model that boosts Indonesia's influence in the global Islamic economy.
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