Bank Indonesia Identifies Four Steps to Ensure Waqf Becomes an Important Pillar Within the Economy

Bank Indonesia (BI) has identified that the use of Islamic social finance instruments and Islamic commercial and social finance integration instruments can help in developing productive Waqf that can strategically support the national economy. According to Perry Warjiyo, Governor of BI, there are four important steps to transform productive waqf into a strategic pillar within the Indonesian economy.

Why it Matters? 

Muhammad Nuh, Chairman of the Indonesian Waqf Board, stated that Indonesia has currently entered a new era of national Waqf revival, evident by the growth of collective awareness across social structures for Waqf and the use of technology in managing waqf. Furthermore, such Islamic social financial instruments as Zakat, Infaq and Alms (ZIS) play a key role in providing strategic support towards the Government of Indonesia’s social protection programmes to deal with the social impacts of COVID-19. 

Details

• The first step involves the ability to design Waqf-based productive projects. 
• The second step is the ability to design integrated financial management between Islamic commercial and social financial integration instruments and Islamic social financial instruments. For example, Cash Waqf Linked Sukuk (CWLS) through Retail SWR001 and SWR002.
• Third is to ensure compliance with Shariah provisions.
• The fourth key step is the digitization of Waqf, making it more convenient for people to partake in Waqf. BI has backed the digitization of the payment system including Waqf through the QR Code Indonesian Standard (QRIS).
• This discussion was held virtually via a national webinar on Productive Waqf titled 'New Era of Waqf through Digital Transformation and Ecosystem Strengthening’ on the 7th of May 2021.

Kaynak: Islamic Markets