Sri Mulyani Targets Rp217 Trillion Of Waqf Funds Through Sharia Bonds

JAKARTA - Minister of Finance Sri Mulyani is eyeing fresh funds from an instrument called Cash Waqf Linked Sukuk. The instrument is also commonly known as cash waqf endowment.

These financial instruments have great potential for Indonesia. As for the calculation, Indonesia's middle class population reaches 74 million people.

This group has the potential to participate in this cash waqf movement. In terms of the amount of funds it is estimated to reach IDR217 trillion or 3.4 percent of the Gross Domestic Product (GDP).

Because of this calculation, Sri Mulyani asked the public to perform waqf through state securities instruments such as state sharia securities (SBSN) or sukuk.

"That's why when we launched cash waqf linked sukuk we provided flexibility," he said, in a webinar titled Indonesia Towards the World Halal Center, Saturday, October 24.

This state treasurer said, waqf is not only in the form of handing over physical assets such as land which is usually done by the community. However, it can also be in the form of cash in which the investment proceeds can be donated.

"So it could be my money, I donate it for 2 years. Later it will be disbursed, back again the results of the investment are donated. So in this case we are now doing marketing for cash waqf linked sukuk," he explained.

Since the sukuk was offered in 2018, said Sri, it has been able to have a positive impact on development in Indonesia. One of them is the Achmad Wardi Eye Hospital, Serang, Banten.

But unfortunately, said Sri, since 2018 the parties involved in the sukuk waqf movement have been institutional investors whose total fundraising has not been too large. Because of this, now targeted individuals are involved.

Sri said, through the waqf investment scheme, the public can go through Islamic banking in Indonesia. Later, the donated funds will remain for two or four years and cannot be traded.

"We can take big steps to raise social funding," he explained.