Islamic Social Finance Must be Optimally Promoted

Nusa Dua, InfoPublik – The Governor of Bank Indonesia (BI) Perry Warjiyo attended Mainstreaming Islamic Finance into Global Initiatives seminar at the 2018 IMF-WBG Annual Meetings in BICC, on Sunday (14/10).

On this occasion, the Governor of BI asserted that it needs some efforts to optimally promote Islamic social finance to achieve inclusive growth.

According to the Governor, the principles of Islamic finance suit the activities of Sustainable Development Goals (SDGs) and financial inclusion, as well as development of small and medium enterprises.

“Bank Indonesia, together with Islamic Development Bank (IDB) and the National Alms Agency (Baznas) have established zakat core initiative in May 2016. It needs an integrated regulation. This initiative is introduced to all over the world, including Indonesia,” Perry further said.

Meanwhile, the Head of Sharia Economy and Finance Department of BI Anwar Bashori explained that Islamic finance consists of Islamic Commercial Finance (banking and insurance), and Islamic Social Finance (waqf, alm, and donation).

“Islamic Social Finance has a big potential, if it is well managed. Waqf, for example can generate big multiplier effect. It can be used for development and to buy state’s sharia bonds to help infrastructure development,” Anwar said.

According to him, Islamic Social Finance, particularly waqf, already becomes part of Indonesia’s development. It becomes alternative financing in infrastructure development.

“Therefore, with this big potential, Islamic Finance in Indonesia must be optimized and developed,” Anwar said. (Ismadi Amrin/Gusti Andry/Translator: Mia)