Financing & Investment

PT SMI provides many options of financing and investment for your financing needs based on sharia principles
Sharia Financing PT SMI:

1. Ijarah Muntahiya Bittamlik (“IMBT”) / Financial Lease

Definition Advantage Mechanism
Ijarah Muntahiya Bittamlik (“IMBT”) is a financing facility with a rental scheme on a leased object between PT SMI and client within a specified period that will ended with ownership of the good in the hands of the client.
  1. No record of underlying asset in the balance sheet (off-balance sheet), thus, not affecting ROA & DER of client

  2. Monthly rental expense/ installment is not subject to variable adjustment term

  3. Applicable for refinancing

  1. Client submits IMBT financing request to PT SMI

  2. Client and PT SMI signed IMBT Financing Agreement

  3. PT SMI purchases the assets required by client from supplier

  4. Supplier deliver assets purchased by PT SMI to client

  5. Client make periodic lease payments to PT SMI during financing tenor

  6. At the end of the tenor, ownership of assets transferred to client, either through buying/ selling at a price that has been set in advance or through grant.

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2. Murabahah / Installment Sale

Definition Advantage Mechanism
Murabahah is a sharia based term financing in which one party purchases a good for cash and then sells it to a second party for deferred payments, by adding some profit there on.
  1. Flexible payment method that align with cash flow/ client needs

  2. Fixed pricing/ margin in accordance with the agreed period in the purchase contract, thus it is not affected by changes in market conditions

  1. Client submits Murabahah Financing request to PT SMI

  2. Client and PT SMI sign Murabahah Financing Agreement

  3. PT SMI purchases the assets required by client from supplier

  4. Supplier delivers assets purchased by PT SMI to client

  5. Client makes periodic installments to PT SMI during financing tenor

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3. Musyarakah Mutanaqisah (MMQ) / Diminishing Partnership

Definition Advantage Mechanism
Musharaka Mutanaqisah (MMQ) is financing facility for ownership of asset through a cooperation on a rental business, where the portion of PT SMI will decline gradually as a result of take over by the client.
  1. Flexible repayment

  2. Long tenor financing

  3. Not affected by fluctuations in market interest/ price caused by inflation

  4. Joint ownership and custody of the item between PT SMI and client

  5. Applicable for refinancing

  1. Client submits MMQ financing request to PT SMI

  2. Client and PT SMI signed MMQ Financing Agreement

  3. PT SMI purchases the assets required by client from supplier

  4. Supplier deliver assets purchased by PT SMI to client

  5. PT SMI leases MMQ assets to client and client will make periodic lease payments to         PT SMI during the financing tenor. Proceeds will then be divided between client and       PT SMI with the amount in accordance with ratio/ ownership

  6. At the end of tenor, assets belong to the client as the ownership transferred by the installments paid during the tenor

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