Alami’s Türkiye Vision

A glimmer of light in the upcoming collaboration between ALAMI and TKBB to expand social impact using technology with sharia principles.

COUNTRY PANORAMA 07.04.2022, 15:39 07.04.2022, 15:48
Alami’s Türkiye Vision

Economic, social and cultural relations between Indonesia and TÜRKİYE have been going on for a long time. There are excellent trends that ultimately drive many positive initiatives and policies of both countries, from both the formal and informal sectors, which not only benefit business actors but also encourage economic progress in both countries.

This also drives ALAMI, a leading sharia-finance ecosystem in Indonesia, to start building communication with the Participation Banks Association of TÜRKİYE (TKBB) to contribute to economic growth by initiating innovation cross border SMEs transactions between Indonesia and TÜRKİYE. Since its launch in 2019, ALAMI has aimed to revolutionise the Islamic finance industry and envisions an equitable and prosperous society using technology based on sharia principles. It is an ethical fintech platform committed to building an ecosystem of financial services and access to sectors that promote positive societal impacts on a large scale.

This vision is based on a solid set of reasons. Similar to TÜRKİYE, Indonesia also shows a promising future for halal fintech and the ecosystem. It is a key global market for the halal economy, with its Muslim population (237 million) making up over 85% of the total Muslim population in Southeast Asia (275 million). Notwithstanding that Indonesia is a significant market for Islamic finance based on the number of Muslim populations, its Islamic finance industry landscape is still lacking in size. In the banking sector alone, Islamic banking assets only amount to IDR 646 trillion or around 6% of the overall banking market share of over IDR 10.0000 trillion (OJK, 2021). Lack of financial access and literacy in both conventional and Islamic finance are contributing factors. This provides a big opportunity for a committed brand to fill the gap. Starting with a fully licensed sharia peer-to-peer funding platform, ALAMI has been one of sharia fintech’s oft-quoted success stories.

Weathering the storm of a global pandemic in 2020 with sure-footed moves, the platform has grown to more than 60,000 registered funders, more than 7,800 financed projects, and upwards of IDR1.6 trillion financing disbursement with 0% NPF, with a number of high-profile industry awards as the Best P2P Islamic Financing Platform both for local and global levels. For ALAMI, growth means more commitment to sustainability and social impact focus as the driving energy for expansion, so to continue the growth trajectory, ALAMI is poised to launch the nation’s first challenger sharia digital bank, Hijra, marking its assured and confident ascent to become a leading fintech platform as well as a key industry player providing a holistic financial ecosystem for both retail and corporate markets. It’s also following ALAMI’s recent successful activation of ALAMI Institute, the first Indonesian Islamic finance think tank, and ARQAM, the MSME business accelerator program, both to push literacy and the opportunity gap in society.

ALAMI's business expansion plan to TÜRKİYE is also propelled by the same drive of social impact, as manifested in ALAMI's future engagement with TKBB. ALAMI will run a pilot project with TKBB in order to provide access to financing solutions for Indonesia's agricultural SMEs through export financing. This export financing will take the form of a purchase order financing and help SMEs access working capital to be commodity exporters to TÜRKİYE.

ALAMI will closely collaborate with TKBB to build and engage in a strategic partnership with a potential Turkish participation banks and local buyers in order to finance the supply chain in TÜRKİYE. On the other side of the export financing, this pilot project also works as an ecosystem financing that creates a social impact for local Indonesian farmers. Through the partnership between ALAMI and the agricultural SMEs which works with local farmers, ALAMI can support the farmers’ financial standing, which leads to their ability to improve the quality of plants cultivation and production. Both parties believe that if the pilot project is successful, the social impact project can also be replicated across the mainstream TÜRKİYE market to access liquidity and local farmers' empowerment.

Dima Djani


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