Govt Ensures Cash Waqf to be Only Invested in Islamic Financial Products

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Petir Garda Bhwana

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  • TEMPO.CO, JakartaThe Religious Affairs Ministry responded to various public questions regarding the National Cash Waqf Movement (GNWU), particularly on the use of collected waqf funds. The GNWU was launched by President Joko "Jokowi" Widodo on Monday, January 21, 2021.

    The ministry’s Director-General for Islamic Affairs, Kamaruddin Amin, emphasized that the management of cash waqf was under the law and government regulations and would only be invested in Islamic financial products.

    Islamic finance refers to how businesses and individuals raise capital in accordance with Sharia, or Islamic law.

    “Broadly speaking, the management of cash waqf can only be done through investments in Islamic financial products,” said Kamaruddin in a written statement on Thursday, January 28.

    He explained that the management would be entrusted to an independent institution, the Indonesian Waqf Board (BWI).

    According to him, 90 percent of the investment returns from the cash waqf would be used for community empowerment programs by distributing it to beneficiaries of waqf or mauquf 'alaih, while the other ten percent would be given to the assets manager.

    “The capital fund of the waqf will not be reduced at all. The Religious Affairs Ministry refers to the Ministerial Regulation (PMA) No. 4 of 2009 in conducting supervision, collection, and management of cash waqf,” said Kamaruddin.

    Also Read: Jokowi: Potential Cash Waqf Can Reach Rp188 Trillions

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