Danamon and Muhammadiyah Central Board Renew MoU to Strengthen Cooperation and Enhance Community Welfare

Press Release / 23 October 2024

Share

Jakarta, 23 October 2024 – PT Bank Danamon Indonesia Tbk (Danamon) officially signed a renewed Memorandum of Understanding (MoU) with the Muhammadiyah Central Board (PP Muhammadiyah) today, Wednesday, October 23, 2024. The signing ceremony was held at PP Muhammadiyah head office and was attended by Danamon's Vice President Commissioner, Halim Alamsyah; Danamon’s President Director, Daisuke Ejima; Danamon’s Director of Sharia and Sustainability Finance, Herry Hykmanto, and Chairman of the Sharia Supervisory Board Prof. Dr. Muhammad Sirajuddin Syamsuddin, alongside members of the Muhammadiyah Central Board Muhammadiyah Prof. Dr. H. Haedar Nashir, M.Si., General Chairman of the Muhammadiyah Central Board; Dr. H. Anwar Abbas, M.M., Head of the UMKM, Community Empowerment and Environment Division of the Muhammadiyah Central Board; Prof. Hilman Latief, M.A., Ph.D., General Treasurer of the Muhammadiyah Central Board; Ahmad Imam Mujadid Rais, M.Ir. - Chairman of the Lazismu Muhammadiyah Central Board.

The renewal of this MoU seeks to reinforce the long-standing partnership between Danamon and PP Muhammadiyah, which has been in place since 2012. The primary objective is to enhance community welfare by focusing on key strategic areas, including education, healthcare, financial services, and philanthropic initiatives.

The collaboration between Danamon and PP Muhammadiyah extends beyond a single field, encompassing multiple sectors that significantly contribute to the social welfare of the Indonesian people. This partnership includes Danamon’s support for all Muhammadiyah Councils and Charity Enterprises, such as the Higher Education Research and Development Council (Majelis Diktilitbang), the Elementary, Middle, and Non-formal Education Council (Dikdasmen & PNF), as well as various Muhammadiyah universities, including Muhammadiyah University of Jakarta, Muhammadiyah University of Kupang, Muhammadiyah University of Maumere, and Muhammadiyah University of Bogor Raya.

Danamon is dedicated to advancing Muhammadiyah's digitalization efforts through collaboration with several zakat and waqf institutions under Muhammadiyah, including Lazismu Pusat, Lazismu Aceh, Lazismu Makassar, and Wakafmu Pusat. This partnership also focuses on enhancing education and payment systems in Muhammadiyah’s universities and schools, ensuring that social, philanthropic, and educational initiatives are more efficient and impactful. These efforts are further supported by aid fund programs aimed at improving the overall welfare of society.

Danamon also extends its support to various Islamic people's financing banks under Muhammadiyah's umbrella, offering tailored financing solutions for the development of Muhammadiyah institutions, facilities, and members. These solutions include sharia home ownership financing, Hajj & Umrah financing, and sharia vehicle ownership financing. Danamon also promotes financial literacy initiatives aimed at fostering sustainability and enhancing the resilience of Muhammadiyah’s financial ecosystem.

President Director of PT Bank Danamon Indonesia Tbk, D.Ejima expressed his gratitude to Muhammadiyah for the trust and partnership that have been built through this collaboration. In his speech, he remarked: "The cooperation that has flourished over the past decade stands as a testament to both parties' unwavering commitment to enhancing the welfare of the Indonesian people. We hope this partnership continues to grow, opening doors to even greater opportunities for collaboration in the future and further strengthening our longstanding relationship."

Danamon's Sharia and Sustainability Finance Director, Herry Hykmanto emphasized that this renewed MoU will further solidify Danamon’s support for the Muhammadiyah banking ecosystem, particularly in a comprehensive and holistic financial management. "With the signing of this MoU, we aim to enhance the banking service ecosystem for Muhammadiyah. We are confident that this collaboration will bring significant benefits, not only to Danamon but also to the Muhammadiyah community. Danamon Syariah is prepared to be a strategic partner, supporting the digitalization of the economy, especially in the areas of education, healthcare, Muhammadiyah's Zakat Infaq and Shadaqah Institution, and Muhammadiyah Charitable Enterprises (AUM)," Herry stated.

As a bank with both local and global reach, Danamon provides tailored financial solutions designed to meet the specific needs of its customers. Through Danamon Syariah, the bank aims for this collaboration to deliver optimal benefits to all parties, including Muhammadiyah members and the institutions under its care. With integrated banking services, Muhammadiyah is expected to manage its finances more efficiently and transparently, enhancing the impact of its educational, healthcare, and philanthropic activities—particularly through the more effective management of zakat, infaq, and alms.

As part of this collaboration, Danamon is dedicated to continuously supporting the advancement of digital services and innovative banking solutions to enhance convenience for everyone within the Muhammadiyah community. With this shared commitment, Danamon and Muhammadiyah are well-prepared to face future challenges together, working toward the welfare of the Indonesian people through sustainable and long-term collaboration.

Chairperson of the Muhammadiyah Central Board Haedar Nashir expressed his appreciation for the expanded cooperation with Danamon, emphasizing the need to uphold the principles of good governance, professionalism, security, and trustworthiness. He also underscored that for Muhammadiyah, these core values should not only enhance religious devotion but also contribute to societal progress. "For us, religion must guide both sacred and worldly affairs, with everything remaining moderate," Haedar stated.

Haedar also stressed that banking, in Muhammadiyah's view, goes beyond business and financial matters, extending into the social and philanthropic realms. He also emphasized that the banking sector must deliver maximum benefits for the community, particularly focusing on MSMEs, which deserve serious attention and should not be treated as a secondary aspect of policy. Haedar hopes that the synergy between Danamon and PP Muhammadiyah will continue, allowing the bank to play a pivotal role in advancing the people’s economy and providing broader benefits for societal revival.

###

For media inquiries, please contact: