Micro Waqf Bank Aims to Provide Financial Inclusion
President Joko “Jokowi” Widodo on Tuesday (18/12) officially inaugurated three Micro Waqf Banks (BWM) in Jombang, East Java. The three banks will provide financing to communities around Mamba’ul Maarif Denanyar, Bahrul Ulum Tambakberas, and Tebuireng Islamic Boarding Schools.
For the record, the Government has established 41 Micro Waqf Banks.
On that occasion, President Jokowi said that the establishment of the Micro Waqf Banks aims to improve the people’s economy by expanding financial access for micro and small business owners.
“Conventional banks usually require collateral and administrative process. Sometimes it is difficult for small business owners to access the banking facilities. The Micro Waqf Bank is established (to solve those problems),” the President said.
The Micro Waqf Bank specifically targets the Islamic students (santri) and the community around the Islamic boarding schools to make them able to start or develop their small businesses. The Government aims to establish more Micro Waqf Bank in Islamic boarding schools throughout Indonesia, the President said.
“We will evaluate (the implementation) annually and will establish (the micro banks) in Islamic boarding schools throughout the country,” the President added.
President Jokowi went on to say that he once met a woman in Banten who are able to develop her business and diversify her business products using the Micro Waqf Bank financing.
For the record, the Financial Services Authority (OJK) states that from October 2017 to November 2018 the Micro Waqf Banks have provided financing to 8,373 customers with a total amount of Rp9.72 billion.
The lending limit provided by the Micro Waqf Bank is Rp3 million. The financing is without collateral and is subject to 3% administration fee per annum, allocated to support the operation of the bank. The Micro Waqf Bank also provides capacity building to the customers to develop their businesses.
Also present during the event were, among others, Deputy Speaker of the Peoples Consultative Assembly (MPR) Muhaimin Iskandar, Cabinet Secretary Pramono Anung, Minister of Religious Affairs Lukman Hakim Saifuddin, and Governor of East Java Soekarwo. (BPMI/EN)
Translated by: Ridwan Ibadurrohman
Edited by: Yuyu Mulyani