“Over Rp34 trillion was collected through zakat, waqf, and other socio-religious finance instruments throughout 2023. Clearly, there is potential growth and enormous impact in the future,” Kacaribu remarked at the 8th Annual Islamic Finance Conference (AIFC) here on Friday.
He said that in recent years, the government has striven to develop various policies, systems, and initiatives to support the collection and distribution processes of Islamic social finance instruments.
One of the efforts was by issuing Cash Waqf Linked Sukuk, which is a form of social investment by collecting funds through cash waqf and then investing in state sukuk, whose returns were distributed by nazhir -- a managerial body for waqf funds and activities -- to finance social programs and community economic empowerment.
The BKF head highlighted that the initiative managed to garner an award at the annual meeting of the Islamic Development Bank (IsDB) last year.
“The principles of Islamic public finance can help us address structural economic challenges, promote financial inclusion, and support government efforts to uplift the underserved while exploring various innovative financial instruments, such as Cash Waqf Linked Sukuk,” Kacaribu explained.
He underscored that the government also strove to explore and harness potential innovations in Islamic public finance management principles for national economic development.
Kacaribu is upbeat that the effort could contribute to finding solutions to the increasing geopolitical tensions, financial risks, and economic fragmentation that had hindered the growth of the global economy.
“Islamic public finance will not only offer an alternative model in navigating national economic growth but also (serve as) a holistic and ethical approach to improving people's welfare as well as encouraging inclusive and sustainable development," he elaborated.
The National Alms Agency (Baznas) noted that the collection of zakat, infaq, and alms in 2023 had exceeded the target of Rp31 trillion.
“There has been extraordinary growth of zakat collection and management by Baznas. Every year, it increases by an average of 30 percent,” Head of Baznas Noor Achmad noted in a written statement here on Saturday (July 20).
He stated that the collection of those Islamic social finance instruments was targeted to reach Rp41 trillion this year.
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Reporter: Uyu Septiyati Liman
Editor: Azis Kurmala
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