REPUBLIKA.CO.ID, JAKARTA -- Indonesia initiated Waqf Core Principles (WCP) as a governance framework to ensure the accountability of waqf (an inalienable charitable endowment under Islamic law) management. It was introduced at the 2018 IMF-WBG Annual Meeting, Sunday

"Hopefully the main principles can be a guide for managing and developing waqf in the future," Finance Minister Sri Mulyani said here Sunday.

The operational standard of Islamic endowments in the WCP was initiated by Bank Indonesia in collaboration with the Indonesian Waqf Board and the Research and Training Institute of Islamic Development Bank (IRTI-IsDB). The WCP is established to achieve several objectives, including providing an explanation about the position and role of waqf, as well as its supervision and management system in economic development programs.

In addition, the WCP also provides a methodology for regulating key principles in the waqf supervision and management system. The WCP document contains 29 principles.

On the same occasion, BI Deputy Governor Dody Budi Waluyo explained that the Islamic financial instrument of waqf-linked sukuk is also introduced in line with the standards set out in the WCP.

He explained that the waqf-linked sukuk is in the form of cash which will be used for sharia-based economic activities that have social impacts. "One of them might be used for helping people who are suffering from disasters in Lombok and Palu," Dodi said.

Head of BI's Department of Islamic Economics and Finance, Anwar Bashori, said currently there is a cash waqf commitment of around Rp20-25 billion (about US$1,316,830 - US$1,646,037.5) to develop sukuk-linked waqf. This amount will continue to grow.

Previously, BI has launched Zakat Core Principles (ZCP) document at the World Humanitarian Summit of the United Nations in Istanbul, Turkey on May 23, 2016.

The ZCP is Indonesia's contribution to the development of zakat management standards. The document contains 18 principles.

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