Jakarta, Indonesia, April 23th, 2019 –
TheUnited Nations for Development Programme (UNDP) and the Indonesian government through Badan Waqf Indonesia, on Tuesday launched Waqf blockchain to fill the gap in the financing of the Sustainable Development Goals (SDG) in Indonesia, the world’s largest Muslim nation by population.
Waqf is a form of Islamic charity referring to the dedication or consecration of any property for any charitable or religious objects, or to secure any benefit that refers to other human beings. In Indonesia the value of land and property labelled as waqf is estimated at USD 27 billion ( IDR 370 trillion).
Badan Waqf Indonesia welcomed the launching, saying the form of charity is compatible with SDG principles.
“Waqf is very much aligned with SDG. The conversation around Wafq is centred on sustainability, people growth and economic growth, principles that are also covered in SDG goals. In ensuring that Waqf reach the target recipients, we would be benefited from working with people with relevant expertise. With UNDP joining forces to launch the Waqf Blockchain, the transparency and credibility in waqf deliveries has now been bolstered,” Vice-Secretary of Badan Waqf Indonesia, Fahrul Roji said in his speech.
UNDP Indonesia is spearheading the initiative under its Innovative Financing Lab which has been at the forefront in the country’s pursuit on leveraging innovative financing for SDGs, particularly in harnessing the full potential of Islamic finance.
Deputy Resident Representative, Ms. Sophie Kemkhadze said the use of blockchain technology strikes a chord with UNDP’s priority in nurturing innovation to accelerate attainment of SDGs and improve the lives of the people, particularly the most vulnerable groups.
“Technology innovation is altering the world at an enormous rate, creating new opportunities across all areas including development. In seeking the most impactful solutions to ensure that no one is left behind, UNDP is constantly tapping on technology innovation to fill the financing gap. The launch of waqf blockchain initiative seeks to explore how waqf and the SDGs can support each other through blockchain. We hope that we can have new directions for how to align the SDGs, waqf, and blockchain,” said Kemkhadze.
Blockchain is a digital platform where distributed data can be used for storing information as well as processing transactions.
Indonesia is a leading country in tapping the potential of Islamic finance for SDGs. UNDP Indonesia’s Innovative Financing Lab in partnership with BAZNAS has pioneered use of zakat, an obligatory payment for Muslims, for SDGs achievement. Indonesia, is the first country that has tapped into the tremendous potential of zakat, through a blended financing mechanism system with funds from local bank Bank Jambi and Global Environment Facility. The funding has built four micro hydro power plants, providing much-needed access electricity to over 4000 people in Sumatra’s Jambi province.