Government extends LinkAja digital payments to sharia businesses

Government extends LinkAja digital payments to sharia businesses

Executive Director of the National Islamic Finance Committee (KNKS) Ventje Rahardjo Soedigno (left) held a press conference in Jakarta on Tuesday (14/5/2019). (ANTARA/Indra Arief Pribadi)

Regarding the digital economy platform, in addition to e-commerce cooperation, we will also work with LinkAja owners to establish LinkAja shariah, together with four Islamic bank owners
Jakarta (ANTARA) - The government, through the National Islamic Finance Committee (KNKS), expanded the scope of the consolidated state-owned digital payment system, LinkAja, into the sharia payment system.

The five members of LinkAja, including state-own bank companies PT Bank Mandiri, PT Bank Negara Indonesia, PT Bank Rakyat Indonesia and PT Bank Tabungan Negara, as well as financial institution PT Fintek Karya Nusantara, will form a sharia-compliant digital payment and electronic money platform in August 2019.

"Regarding the digital economy platform, in addition to e-commerce cooperation, we will also work with LinkAja owners to establish LinkAja shariah, together with four Islamic bank owners," Ventje Rahardjo Soedigno, Executive Director of the National Islamic Finance Committee (KNKS) told a press conference when launching the Master Plan Shariah Economy here on Tuesday.

LinkAja's commitment to the establishment of sharia payment instruments was contained in a memorandum of understanding at the launch of the Sharia Economic Master Plan. President Joko Widodo led the launch of the Sharia Economic Master Plan.

Ventje said the formation of LinkAja sharia was one of several initiatives from the KNKS Islamic economic development roadmap.

Also, Director of Sharia Economic Development and Halal Industry of KNKS Afdhal Aliasar detailed that if LinkAja sharia had been established, the digital payment instrument would encourage the building of a community for e-commerce, banking transactions and payments for religious activities, such as zakat (alm) and waqf (mortmain property).

"We expect LinkAja Shariah to become a digital payment system capable of supporting the sharia economic digital ecosystem that is connected with the 'e-commerce' trading system, Islamic financial products, halal tourism, and also serving social religious fund transactions, such as infaq, zakat and waqf, with mosques and zakat institutions throughout Indonesia," he said.

Afdhal targets the establishment of LinkAja Shariah to be set up by August 2019.

For the launch of the Indonesian Sharia Economic Master Plan (MEKSI) 2019-2024, the government has four strategic steps to develop the Islamic economy and are intended for Indonesia to become a major producer in the halal industry chain throughout the world in 2024.

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