Characteristics of Sharia Crowdfunding as an Alternative to Financing the Development of the National Capital City

This research started from the construction of the new National Capital City of the Nusantara which has not yet been completed and requires a very large budget. In this regard, a financing model is needed that can be used as an alternative financing for the development of the new National Capital City. The aim of this research is to find the characteristics of sharia crowdfunding as an alternative financing in the process of building the new National Capital City. The research method used is a normative juridical research method with a statutory and a conceptual approach. The results of this research show that there are several characteristics of sharia crowdfunding as an alternative financing for the development of the New National Capital, namely: it is only intended for halal projects and products so that it complies with sharia principles and is free from interest rates; there is fairness in the distribution of profit and loss margins using a profit-sharing system; and supervised by the Sharia Supervisory Board.

Introduction

The center of government of the Republic of Indonesia, which was previously in Jakarta, will be moved to the Nusantara, East Kalimantan . The transfer process was officially carried out after the ratification of Law Number 3 of 2022 concerning the National Capital[20]. Construction of the National Capital of the Nusantara will begin in March 2022 and then the National Capital will be moved in stages from 2024 to 2045[20]. This of course requires large funding sources, which are estimated at IDR 466 trillion[33]. In this regard, the government plans to source financing for the development of the National Capital to come from the State Revenue and Expenditure Budget (APBN) and other financing sources. According to Sidik Pramono as Head of the National Capital Communication Team, one of the sources of financing for National Capital development could be through crowdfunding.

Crowdfunding is a financing scheme with the concept of collecting funds via the internet in the form of a crowdfunding platform[18]. The ease of investment and raising funds through crowdfunding has a positive impact on the economy and development. It is proven that the funds collected through crowdfunding based on the Financial Services Authority (OJK) report have reached IDR 413.19 billion in 2021 and experienced an increase of 22.75% until June 2022, namely IDR 507.20 billion[3]. This amount will increase at the end of 2022 to IDR 721.84 billion[8].

In sharia finance and business, there is sharia crowdfunding which is an investment mechanism in the form of sharia-based crowdfunding that funds halal projects and products by paying attention to sharia principles[17]. Sharia crowdfunding, which is based on the principle of helping each other for good, has the potential to be a financial innovation in the sharia financial industry[18]. The development of sharia crowdfunding in Indonesia as a country with a majority Muslim population has a great opportunity to become an alternative financing for various sectors.

In connection with the explanation above, the existence of sharia crowdfunding is an innovation in sharia finance that has the potential to be used as an alternative means of financing the development of the new National Capital. The ease of raising funds by utilizing online media that involves the wider community in sharia crowdfunding is in line with the Indonesian principle of mutual cooperation[12]. In this regard, the problem formulation in this research is: What are the characteristics of sharia crowdfunding as an alternative financing for the new National Capital City development?.

Other research as comparative material to show the originality or novelty of this research is: First, the article by Rizki Fajar Kurniawan et al. with the title “Analysis of Crowdfunding as an Alternative to Financing Infrastructure Development in the Nusantara Capital Project” which discusses the potential of crowdfunding as an alternative to financing the development of the new National Capital City infrastructure[11]. Second, the article by Habibah Moslem et al. titled “Sharia Crowdfunding as An Alternative Financing Solution for The Nusantara Capital City Authority” which describes the sharia crowdfunding model that can be used in National Capital financing in the form of the Waqf Crowdfunding Model (CWM), loan-based crowdfunding(qard)and equity crowdfunding[15]. Third, an article by Kristianus Jimy Pratama with the title “Regulatory Challenges in Digital Foreign Investment Through Securities Crowdfunding in Indonesia” which discusses foreign investment regulations through Securities Crowdfunding, one of which is contained in Law Number 3 of 2022 concerning National Capital which does not yet provide protection and risk management for securities crowdfunding for National Capital funding[21]. Based on this description, the difference with this research is that the researcher focuses more on finding the characteristics of sharia crowdfunding as an alternative financing for the development of the new National Capital, where the funding mechanism for National Capital development through sharia crowdfunding has never been done before, either in Indonesia or other countries.

This research uses a normative juridical research type, namely legal research that emphasizes existing legal norms that apply in society as the object of research[7]. Normative juridical research is also known as doctrinal legal research, namely literature-based research carried out by reviewing legal documents in the form of statutory regulations and library materials[29]. Statutory and conceptual approaches are used. The legislative approach is a research approach that examines all laws and regulations related to the legal issue being studied[14], namely related to all legal regulations regarding sharia crowdfunding as an alternative financing for the development of the New National Capital City. Furthermore, the conceptual approach originates from the views and doctrines that have developed in legal science, which can be used to form legal arguments[14]. The conceptual approach in this research is used to examine the characteristics of sharia crowdfunding as an alternative financing for the development of the New National Capital City.

The legal materials used in this research consist of primary legal materials in the form of legal regulations consisting of Law Number 3 of 2022 concerning National Capital; Financial Services Authority Regulation of the Republic of Indonesia Number 16/POJK.04/2021 concerning Amendments to Financial Services Authority Regulation Number 57/POJK.04/2020 concerning Securities Offerings Through Information Technology-Based Crowdfunding Services; DSN-MUI Fatwa No: 117/DSN-MUI/II/2018 concerning Information Technology-Based Financing Services Based on Sharia Principles; and DSN-MUI Fatwa No: 140/DSN-MUI/VIII/2021 concerning Sharia Securities Offerings Through