OJK Targeting to Establish 50 Micro Waqaf Banks

The Financial Services Authority (OJK) was targeting to establish 50 micro waqaf banks in Indonesia to support the economic empowerment of moslem community and the middle low class community to starting a business in Indonesia. "Until March we already have 20 micro waqaf banks, it means there are still needed 30 of them,” added the head of the Islamic Banking Department of OJK, Ahmad Soekro.

Ahmad said the addition of micro waqaf bank will not only in Java, but also outside Java, such as in Sumatra and eastern part of Indonesia. "We may also establish the micro waqaf banks outside of pesantren, because during this pilot project of the micro wakaf banks are establish only inside the pesantren area," he added.

He acknowledged, however the addition of the micro waqaf banks will need to be supported by an increase in the number of donors. Currently, it needs at least Rp4 billion to establish a micro waqaf bank to encourage financial inclusion program.

Thus, to establish 30 new micro waqaf banks, it will need the donation of approximately Rp120 billion. Until mid of March 2018, the total donations from the donors have reached Rp80 billion with only given Rp3.1 billion to 3,800 customers.

Each customer receives a loan from about Rp1 million to Rp3 million for the need of micro business community with interest of three percent per year. Overall, Ahmad expects the establishment of micro waqaf bank could support the need of the financial of middle low community that have not been connected by conventional financing system.

Until now the middle low community do not have the assets to pay the collateral fees that required by the provider of financing or credit. "So this is the first step in building a non-bankable community to be bankable," Ahmad said.

Disclaimer: This article is a summary of news articles obtained from a number of mass media. We are not responsible for the accuracy of data or sources of information presented by the mass media that became the reference.

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