Jokowi Launches Money Waqf Movement, Ministry Of Religion Ensures To Be Invested In Sharia Financial Products

President of the Republic of Indonesia, Joko Widodo. (Photo: Doc. Setkab)

JAKARTA - Regarding the Money Waqf Movement (GNWU) launched by President Joko Widodo on Monday, January 21, the Ministry of Religion (Kemenag) has responded to various responses from the public, particularly regarding the use of the collected waqf funds.

The Director-General of Islamic Community Guidance at the Ministry of Religion, Kamaruddin Amin, underlined that the mechanism for collecting and managing cash waqf is regulated in laws and government regulations. The management of the waqf, he ensured, was only invested in Islamic financial products.

"Broadly speaking, the management of cash waqf can only be done through investing in Islamic financial products," said Kamaruddin in a written statement, quoted by VOI, Thursday, January 28.

The management of cash waqf, he explained, would be delegated to Nazhir (waqf managers) through the Islamic Financial Institution that Receives Cash Waqf (LKS-PWU) which has received permission from the Ministry of Religion As for the parties who are Nazhir in GNWU are the independent institutions of the Indonesian Waqf Board (BWI).

He explained that the collected waqf money will then be invested in various kinds of official Islamic financial products such as mudharabah deposits, musyarakah, even sukuk or State Sharia Securities (SBSN).

According to Kamaruddin, government project financing is a form of investment instrument. Even then, as long as the instrument is still based on sharia, while still paying attention to the will of wakif.

"So, sukuk or State Sharia Securities are only one of the sharia instruments that provide a certain yield (profit sharing). It's up to Nazhir to invest in which instrument, as long as it is in accordance with the provisions of the Sharia law and regulations," he said.

From the results of the Islamic waqf investment, as much as 90 percent will be used in the community empowerment program by distributing it to the beneficiaries of waqf (mauquf 'alaih). Meanwhile, the other 10 percent can be used by Nazhir as a manager of waqf assets.

"As for the principal of the waqf, there will not be any reduction at all. In conducting supervision, collection, and management of cash waqf, the Ministry of Religion is guided by the Regulation of the Minister of Religion (PMA) Number 4 of 2009," said Kamaruddin.