Group photo shortly after the signing of the Cooperation Agreement by ITS Chancellor Prof. Dr. Ir Mochamad Ashari MEng IPU AEng (left) with the Chairman of the Implementing Body – Indonesian Waqf Board Prof Dr. H Mohammad NUH (right)

ITS Campus, ITS News – Through the Ministry of Finance (Kemenkeu), the government has opened a period of offering Sukuk Waqf with three main series. With the presence of the latest sharia investment instrument idea, the Sepuluh Nopember Institute of Technology (ITS), together with the Indonesian Waqf Board (BWI), again collaborated and signed a Cooperation Agreement (PKS) in the Senate Meeting Room of the Rectorate Building, Monday (13/6).

Many rows of investment instruments can be chosen by the community, including Waqf Sukuk. The three series of waqf sukuk circulating in the community will be managed based on sharia principles and have obtained sharia compliance from the National Sharia Council of the Indonesian Ulema Council (MUI).

With the introduction of this latest investment instrument, the government aims to facilitate cash waqf, both temporary and permanent, so that they can place their money waqf in safe and productive investment instruments, including in educational institutions for the welfare of the community in various social activities.

Speech and opening of the initial discussion between PKS and BWI by ITS Chancellor Prof. Dr. Ir Mochamad Ashari MEng IPU AEng (center)

In this PKS activity, ITS Chancellor Prof. Dr. Ir Mochamad Ashari MEng IPU AEng gave a speech with open arms to accept the offer of cooperation in financial planning and sharia worship activists. With that essential understanding, the waqf giver will get a “reply” reward for the charity that never ends.

Later, the yields offered by the various waqf sukuk series are considered quite good. Especially during the current pandemic transition economic situation. All return to the basic principle of waqf, namely charity for the benefit of the people, not merely seeking profit. “The returns can be distributed to various humanitarian projects, following the ITS Advancing Humanity tagline,” he explained.

Furthermore, Ashari is also interested in the green sukuk program issued to finance the threat of climate change and uncertainty in the global market. According to him, this shows that Indonesia, supported by educational institutions, has a huge opportunity to optimize the Islamic financial market. This is considered following the current G20 conference discussion.

Presentation of general information on waqf sukuk that ITS will carry out by the Director of Sharia Financing – Directorate General of Financing and Risk of the Ministry of Finance of the Republic of Indonesia (DJPPR Ministry of Finance) Dwi Irianti Hadiningdyah SH MH

On the other hand, Director of Sharia Financing – Directorate General of Financing and Risk of the Ministry of Finance of the Republic of Indonesia (DJPPR Kemenkeu) Dwi Irianti Hadiningdyah SH MH was also present to explain more deeply about waqf sukuk by BWI. Following the authority given, BWI, in its position as nazhir or waqf manager, has placed cash waqf funds in SBSN through a private placement mechanism.

Closed discussion of ITS leaders and their staff with the leadership of the Ministry of Finance of the Republic of Indonesia in the ITS Chancellor’s Room

ITS’s choice of waqf of 50 billion rupiahs utilizing a private placement is the first initiator in the educational institution environment. With the wakalah contract process used in this instrument, the return received by BWI as a waqf nadzir is 6.51 percent, with a rate of at least 5 percent, which will be channeled to utilization partners through BWI partners.

Although the sukuk program has generated enormous profits internationally, it still requires socialization of Cash Waqf Linked Sukuk (CWLS) in the form of appropriate and broad waqf to the community, especially the middle class who have excess funds and Islamic finance passion. “With ITS being the first education initiator in Indonesia, socialization is expected to be started by providing an understanding of the goals of CWLS,” he explained.

Photo with the leadership of ITS and its staff with the supervision of the Ministry of Finance of the Republic of Indonesia

With the agreement of this PKS, the two agencies fully hope that the cooperation program will continue to be an alternative investment and financing instrument based on sustainable sharia principles in Indonesia. Waqf sukuk offers bright prospects and opens new opportunities for future Islamic finance innovation. (ITS Public Relation/far)

Reporter: Fauzan Fakhrizal Azmi