Islamic Finance 

Indonesia president optimistic on growth of funds for micro wakaf banks

Indonesia president optimistic on growth of funds for micro wakaf banks
Photo: Indonesian President Joko<span class="highlight"> Widodo </span>delivers a speech at Foreign Ministry office in Jakarta, Indonesia, February 12, 2018. Antara Foto/Wahyu Putro/via REUTERS

Banten, March 14 -- President Joko Widodo (Jokowi) is optimistic that several people would come forward to donate funds to micro 'wakaf' banks in Indonesia, thereby encouraging the development of the micro business sector.

"We will push donors as much as possible. I am certain many people want to donate to wakaf (donation) banks. This money will circulate in the community," President Jokowi remarked on the sidelines of reviewing a rental apartment built by the Ministry of Public Works and Public Housing in the Islamic Boarding School of An Nawawi Tanara, Serang District, on Wednesday.

Currently, the government and Financial Services Authority have set up 20 micro wakaf banks in boarding schools in Java. The government will develop 20 more, including outside Java.

"We are ready to set up 20 wakaf banks, and the figure will increase in future," President Jokowi emphasized.

The president noted that businessman Datok Sri Thahir had donated to the micro wakaf bank in the Islamic Boarding School of An Nawawi.

The opening of a wakaf micro bank in Banten is the third of its kind after that in Surabaya, East Java, and Cirebon, West Java.

"Development of a micro wakaf bank has already begun, and we plan to manage 20 wakaf banks and set up more in future," he emphasized.

According to the president, people from the lower-income group must be offered room to develop, as there are so many people who want to borrow but they do not have a collateral. The solution lies in the establishment of a micro wakaf bank.

"They will only have to bear the administrative costs if they approach a conventional bank. Food stalls selling fried rice, uduk rice, and others are expected to have access to it, so that their economy could progress," he stated.

The head of state also remarked that each micro waqf bank requires a donation of Rp8 billion, but it depends on the type.

"The micro wakaf bank of An Nawawi facilitates the first assistance of Rp1 million," he added.

According to President Jokowi, every Islamic boarding school has its business community, with its own system to be developed, for realizing economic growth.

"However, there is an Islamic boarding school that does not have a business community. We need to build it. Fortunately, the number of customers at the An-Nawawi Islamic Boarding School has reached 200 people," he added.

Reported by Agus Salim

Published by HT Digital Content Services with permission from Antara News.

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