TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

'Waqf' the next best thing in finance

  • Ebi Junaidi
    Ebi Junaidi

    School of Economics lecturer at University of Indonesia

PREMIUM
Durham, England   /   Tue, February 28, 2017   /  05:19 pm
'Waqf' the next best thing in finance Personal touch: A teller serves a customer at the sharia lender Bank Syariah Bukopin's head office in Central Jakarta on Feb. 7, 2017. (JP/Dera Menra Sijabat)

Bank Indonesia (BI) announced recently its plan to issue waqf (Islamic endowment) based bonds as a social welfare mechanism to support struggling commercial assets. The Indonesian Muslim Intellectual Association (ICMI) will also launch the very first waqf venture bank this June. Can waqf become next best thing in Islamic finance? Islamic economics and finance projects initiated in the early 20th century aimed for the “elimination of poverty and reduction in inequalities in the distribution of income and wealth” (Siddiqi, 2006). This project was then actualized in the form of Islamic banking and finance. Indeed, Islamic finance and banking has played a role in achieving the above vision of the founding fathers, being alternative institutions and instruments chosen by the previously untapped market. Why should we expect waqf become the new trend in Islamic banking? ...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.