Remarks of President of the Republic of Indonesia on the Launching of the National Movement for Cash Waqf and Sharia Economy Brand, 25 January 2021 at the State Palace, Jakarta

Bismillahirrahmanirrahim,
Assalamu’alaikum warahmatullahi wabarakatuh.

Distinguished Vice President of the Republic of Indonesia;

Distinguished Heads of State Institutions, Cabinet Ministers, Governor of Bank Indonesia, Chairperson (of Board of Commissioners) of the Financial Services Authority,

Distinguished Governors,

Distinguished Chairperson of the Indonesian Chamber of Commerce and Industry (Kadin),

Distinguished Chairperson of the Indonesian Waqf Board, community leaders and religious leaders,

Ladies and gentlemen.

In 2021 we will continue to find measures and breakthroughs to narrow down social inequality in order to achieve an equitable development across the country.

I have reiterated the importance of asset redistribution, expanding access to capital, strengthening skills, and cultural changes in overcoming poverty and social inequalities.

One of the breakthrough measures that we need to think about is the development of sharia financial institutions that are managed based on the waqf system. The potential for waqf in Indonesia is very high in terms of fixed asset and current asset, including waqf in the form of cash.

Ladies and gentlemen,

The potential for waqf is very high in our country. The potential for waqf assets per year reaches Rp2,000 trillion and the potential for cash waqf can exceed Rp188 trillion. Therefore, we need to expand the scope of waqf. It should not be limited to religious purposes, but should be developed for socio-economic purposes that have a significant impact on reducing poverty and social inequality in society.

To that end, the launching of the National Cash Waqf Movement today is an important part, not only to improve awareness, literacy, and public education on the economy and sharia finance, but also as an effort to strengthen a sense of care and social solidarity to overcome poverty and social inequality in our country.

As home to the largest Muslim population in the world, it is time for Indonesia to provide an example of the practice on managing waqf that is accountable, professional, credible, trustworthy, and has a productive impact on the welfare and economic empowerment of Muslims. And, at the same time, it will be able to have a significant influence on the efforts to drive our national economy, especially in micro, small and medium enterprises (MSMEs) sector.

Mr. Vice President, Ladies and Gentlemen,

Sharia economy has an enormous potential to be developed. Sharia economy development is not only carried out by countries with a majority Muslim population, but also by other countries, such as Japan, Thailand, the United Kingdom, and the United States. We must seize this opportunity by encouraging acceleration and speeding-up the development of the national sharia economy and finance. We must prepare ourselves to become the center for global sharia economy.

We still have work to do. Indonesia’s sharia economic literacy index remains low at 16.2 percent. There is still room to improve public knowledge and there are still opportunities to be optimized. We must also continue to organize halal value chain in the real sector that supports MSMEs, including the development of the creative economy.

We are strengthening sharia finance industry by building one of the largest sharia banks in Indonesia. We have set the target of conducting in February, God willing, it can be completed. We are developing Micro Waqf Banks in various places and strengthening zakat, infaq, alms and waqf institutions to support economic empowerment of the people.

As part of these great efforts, I warmly welcome the inauguration of the Sharia Economy Brand. This is very important to increase public awareness, to support all Indonesian sharia economic activities, and to unite the movement to increase the added value of sharia economy in our country.

Finally, by saying bismillahirrahmanirrahim, I hereby officially launch and inaugurate the National Movement for Cash Waqf and Sharia Economy Brand this morning.

I thank you.

Wassalamu’alaikum warahmatullahi wabarakatuh.