From Zakat to Wakaf, the Ministry of Religion Will Prepare LPDU to Optimize the Potential of the People's Funds

JAKARTA - The Ministry of Religion (Kemenag) plans to form a Community Fund Management Agency (LPDU) as a strategic step to optimize the great potential of community religious funds that have not been fully utilized.

Minister of Religion Nasaruddin Umar said that the potential for funds for Indonesian people if collected can reach around Rp. 1,000 trillion to Rp. 1,200 trillion per year and the funds are believed to be used to reduce poverty without having to increase the tax burden of the community.

He described the potential of the people's funds as a "sleeping giant" that will now be activated for the welfare of the community and the progress of the nation.

"We are very confident that if we collect all of this, then the total calculation I can collect a minimum of Rp. 1,000 trillion per year, so there are many ways to collect funds for umat that have not been productive so far. The accumulation can be Rp. 1,200 trillion per year," he said at the closing ceremony of the 2026 Islamic Finance Ramadan Gathering (GERAK Syariah), quoted Friday, April 3.

He said that so far, various sources of funds such as zakat, waqf, infak, alms, and sacrificial funds have not been managed in a coordinated and productive manner, although, if optimally utilized, these funds have great potential to help the less fortunate.

Nasaruddin also detailed a number of potential that have not been fully developed, such as the potential of zakat, which is estimated to reach Rp. 320 trillion per year, but the realization in 2025 is only around Rp. 41 trillion.

Meanwhile, for waqf, the potential reaches Rp. 178 trillion, while the collection is still around Rp. 1 trillion, and the sacrificial fund has an economic value of up to Rp. 72 trillion per year.

He added that in Islamic teachings there are at least 24 sources of umat funds that have not been professionally managed and in the future, not only zakat will be relied on, but also various other sources such as waqf, infak, alms, fidyah, kifarah, to DAM funds from Hajj and Umrah.

"We will manage it well so that its utilization will be useful for this nation," he said.

To strengthen governance and transparency, he added that the Ministry of Religion would work with the Financial Services Authority (OJK) in overseeing the movement of funds.

In addition, Nasaruddin said that the LPDU was also designed to be inclusive, not only for Muslims, but also involving all religions in Indonesia such as Catholics, Protestants, Hindus, Buddhists, and Confucianists, so that its collection and utilization is wider and more even.

He also said that the LPDU building was planned to be built in front of the Hotel Indonesia (HI) area at the direction of President Prabowo Subianto and the building would have 40 floors and become a center for the activities of the fund management institution.

"This is what we will accommodate in the LPDU. (Office) 40 floors will be built by the President in front of the Hotel Indonesia," he said.