Bank Danamon Presents Cash Waqf Services

News / 05 March 2021

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Bank Danamon Presents Cash Waqf Services

Jakarta, March 5 2021. PT Bank Danamon Indonesia Tbk (“Danamon”), through its Sharia Business Unit (UUS), this day launched cash waqf services following its official appointment by the Ministry of Religion of the Republic of Indonesia as one of the Islamic Financial Institutions - Recipient of Cash Waqf (LKS-PWU). The virtual launch event featured a talkshow entitled ''Youth, Contributions & Blessings with Danamon Sharia''. In attendance were Bank Danamon President Director Yasushi Itagaki, National Committee and Sharia Finance Executive Director Ventje Rahardjo, Indonesian Waqf Board Nazhir Empowerment and Management Division Head Hendri Tanjung, and Nadzir Indonesia Productive Waqf Forum Chairman Bobby P Manullang.

“Bank Danamon is privileged and thankful to have been appointed as one of the Islamic Financial Institutions - Receiving Cash Waqf by the Ministry of Religion of the Republic of Indonesia. This aligns with our commitment to help improve society’s welfare and provide solutions for customer needs, especially waqf which is currently one of the main activities of Islamic banking. We hope that Bank Danamon customers will find it easy to do waqf and contribute to rebuild an economy affected by the pandemic," said Danamon Sharia Director Herry Hykmanto.

Waqf or charitable endowment for the benefit of the people, is one of the muamalah activities that has spiritual, social and economic dimensions. By providing services for receiving cash waqf, Danamon Sharia contributes to the community’s economic development, which starts with securing continuous post-pandemic economic recovery alongside increasing waqf literacy and public awareness.

“We are grateful and appreciative of Danamon's initiative to provide cash waqf services through its Sharia Business Unit. As a newly designated LKS-PWU, Danamon Syariah has already been involved in developing product services and overseeing the cash waqf literacy program in Indonesia. Today’s launch of the Danamon Sharia Cash Waqf service shows Danamon Sharia's concern for community welfare, especially in encouraging the millennial generation to donate cash. To ensure quality corporate service, cash waqf must be managed in a transparent, professional and accountable manner, and the general public must be provided with convenient and excellent cash waqf services,” said National Committee and Sharia Finance Executive Director Ventje Rahardjo

Currently, the millennial generation plays a significant role to develop waqf in Indonesia. In the history of Islam, the foundation of civilization was built by the youth who continuously lay the groundwork for changes. The Indonesian Waqf Board (BWI) views the youth as an investment in the future of Indonesia’s sharia economy and Islamic philanthropy, including waqf. For this reason, BWI has intensively organized literacy and socialization programs for the youth, especially in the school campuses. This is an important step to prepare an ideal waqf-literate generation inclusive of modern times and technology.

There is a huge potential for cash waqf collection and the launch of Bank Danamon Sharia's social banking platform provides convenience, both for the public to perform waqf and nazhir to manage cash waqf. "To help waqf literacy and socialization, it is now time for the national waqf system to develop and transform digitally to increase public trust and Nazhir accountability," said Prof. Dr. M. NUH.

Customers can easily perform waqf through Bank Danamon digital applications and branch offices. Taking advantage of digital infrastructure advancements, Bank Danamon partnered with PT Minasa Fintechnology Syariah so that waqf can be done using a mobile phone anytime and anywhere. Customers do not need to visit the Waqf Management Institution or a Nazhir. In addition, waqf funds are managed transparently and professionally. Through a digital application, customers can select a a Nazhir and waqf recipient, and monitor the progress of their waqf. Waqf can be done by anyone, including millennial youth who can start waqf at affordable costs starting from IDR 10,000.

So far, the community’s method of waqf has been characterized by immovable assets (social waqf) such as the construction of places of worship (mosques, langgar, prayer rooms) and cemeteries. Danamon Sharia offers a variety of sustainable beneficial programs such as waqf for the empowerment of Qurban animal breeders, waqf for hospital construction, waqf for education and other similar social programs. In the future, we will expand productive economic waqf programs to further empower the people. Danamon Sharia collaborates with several Nazhir partners including Al Azhar Waqf, ZISWAF Dompet Dhuafa, Daarut Tauhid Peduli and the Nahdatul Ulama Waqf & Defense Institute (LWPNU).

With the various facilities that Danamon Syariah provides, we hope to encourage and motivate the community, especially the young millennial generation, to contribute and share goodness with others. Through waqf, a waqif (wakif) can help rebuild the economy affected by the pandemic wherein the benefits will continue to flourish and provide happiness for many people.