Cash Waqf National Movement to Boost Sharia Economic Growth: Sri Mulyani

Finance Minister Sri Mulyani delivered a report at the Launching of the National Movement for Cash Waqf and Inauguration of the 2021 Islamic Economic Brand, Monday (25/01/2021). (Photo by: Public Relations / Rahmat)

In a bid to develop Indonesia’s integrated Islamic economics and finance, the National Committee for Islamic Economics and Finance (KNEKS), the Indonesian Waqf Board (BWI) and other related institutions have launched the National Movement for Cash Waqf.

According to Minister of Finance Sri Mulyani Indrawati, the movement aims to raise public awareness, literacy and education on the economy and sharia finance.

“In line with the development of the sharia economic and financial sector, sharia social fund sector or Islamic philanthropy which includes zakat, donations, it is very important to develop alms and waqf,” the Minister said during the launching of the National Movement for Cash Waqf and the Inauguration of the Sharia Economy Brand, Monday (25/01/2021), at the State Palace, Jakarta.

The National Movement for Cash Waqf and Sharia Economic Brands, according to her, can boost a faster and broader sharia economic growth, as well as speed up Indonesia’s vision to become the world’s sharia economic and financial hub.

For the record, as of 20 December 2020, the total cash waqf has reached Rp328 billion, while project-based waqf has reached Rp597 billion.

The Minister went on to say that the BWI and its nazir (managers) last year mobilized cash waqf and invested it in Cash Waqf Linked Sukuk (CWLS), a new instrument issued by Ministry of Finance with the yields used to finance a number of social programs.

“We have collected more than Rp54 billion in Cash Waqf Linked Sukuk,” she said.

Given the amount and enthusiasm of community participation in waqf, stakeholders will develop cash waqf management to strengthen the Islamic Social Safety Net.

The Minister also expressed hope that with trustworthy, transparent and professional management, cash waqf and waqf-based financial instruments can help speed up national development and improve the people’s welfare. (Ministry of Finance PR/UN) (MUR/EP)