Fully Support Waqf Development, Bank Jatim Signs LOI with Indonesian Waqf Board

Date: 27 march 2024

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JAKARTA, March 27, 2024. As a form of support in strengthening waqf in Indonesia, PT Bank Pembangunan Daerah Jawa Timur Tbk through its Sharia Business Unit (UUS) has synergized and collaborated with the Indonesian Waqf Board through the signing of a Letter of Intent (LOI) on Wednesday (3/27) during the Gebyar Wakaf Ramadhan event. Located at Aryaduta Hotel Jakarta, the LOI was signed by the Director of Finance, Treasury & Global Services bankjatim Edi Masrianto and Chairman of the Indonesian Waqf Board Prof. Muhammad Nuh. Also present was the Minister of Religion (Menag) of the Republic of Indonesia Yaqut Cholil Qoumas.

Edi explained that the collaboration is expected to develop waqf products in the country so as to increase the amount of cash waqf or productive waqf that benefits the community. According to him, every object that is endowed can increase in value. So that it will certainly have a positive impact on many people, especially those in need. "The power of giving can have an impact on the middle to lower economic class. Waqf is not just an investment in the hereafter, but it can also be an investment that can benefit both in this world and the hereafter, for oneself and the community at large," said Edi.

Therefore, UUS bankjatim fully supports the development of waqf in Indonesia because it has great potential to encourage economic growth and community welfare. "Hopefully with the signing of this LOI bankjatim can contribute concretely to the community, especially in improving the standard of living, the benefit and dignity of the people," said edi.

Meanwhile, Yaqut Cholil Qoumas said that the potential of waqf in Indonesia is quite large. The figure reaches IDR 180 trillion per year. Well, if the waqf is continuously developed and managed into productive waqf, then the results can alleviate poverty. "Literacy about waqf must be improved. The government's contribution is also important for the waqf world," he said.

Menag also emphasized that the government has implemented several strategies related to waqf development. One of them is that in 2022, he has signed an MoU with the Minister of ATR / BPN to accelerate the certification of waqf land. "Now there are around 400 thousand waqf land points that have been certified. This is part of the government's effort to encourage waqf to be one of the solutions to social problems in Indonesia," said Yaqut.

Prof. Mohammad Nuh also said that there needs to be a serious effort for waqf to become the main trend and policy of the government in the future to alleviate poverty. "Most recently, the Waqf for Bride-to-be Money has been developed. Before the marriage contract, the bride and groom can do waqf," he said.

Then, the proceeds of the bride-to-be's waqf money are used for people in need. For example, if there is a married couple who has children and then divorces after marriage, the money from the waqf management of the bride-to-be is used to help and take care of their children. "The bride-to-be's waqf money is managed jointly by BWI and the Ministry of Religious Affairs, it will later become a sukuk so that the proceeds of the waqf will be used for public benefits and so on," Nuh explained.