Governor of Bank of Indonesia (BI), Perry Warjiyo. (Image from Bisnis.com)

Perry Warjiyo: Waqf could be the solution to Indonesia's economy

What to do to revive Indonesia's struggling economy amid the raging novel coronavirus disease (COVID-19) pandemic? The Governor of Bank of Indonesia (BI), Perry Warjiyo, said that waqf could be an alternative instrument to help revive the national economy blown away by COVID-19. Waqf is an endowment of property held in trust and used for charity or religious purposes according to Islamic law.

Speaking in the International Forum on Contemporary Fiqh Issues on Islamic Economies & Finance event on Tuesday, Perry said that waqf potential in Indonesia, as one of the largest Muslim countries in the world, is still large. In order to use the maximum potential, Warjiyo said that Indonesia has provided an instrument called "Cash Waqf Linked Sukuk" (CWLS) through both private placement and retail CWLS.

Moreover, in mid-September, the Finance Ministry financing and risk management office (DJPPR) has already opened the offering for retail CWLS with serial code SWR 001. The offering is available until 12 November with a fixed coupon rate of 5.5% per year. The retail waqf sukuk's serial has a 2-year tenor.

Perry said that waqf's potential could be developed in Islamic countries as its scope and usage are broad for economic empowerment. Previously, Perry revealed that Indonesia's waqf potential reached Rp3,000 trillion. The fund came from waqf, both cash & building which has not been used.

Source: https://bit.ly/3kO2FLD