Productive Capital Waqf as a Solution to Community's Problems

Global Wakaf-ACT came up with Productive Capital Waqf as a solution to alleviate the community's economic difficulties. This productive capital waqf is expected to ease the MSME owners in the midst of economic uncertainty due to the pandemic and the Emergency PPKM.

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Ika, a beneficiary of Capital for MSMEs Program. (ACTNews)

ACTNews, JAKARTA – Global Wakaf - ACT presents Productive Capital Waqf as a solution to alleviate the community's economic difficulties. This productive capital waqf is expected to ease the MSME owners in the midst of economic uncertainty due to the pandemic and the Emergency PPKM.


 Director of Productive Capital Waqf, Suko Rini admits many still consider waqf to be in the form of mosques, graveyards, and madrasas. Many have no idea that, in the current condition, waqf can be utilized as a solution to economic problems. 

 

"We understand waqf from the perspective of social interaction according to the Sharia.  This means that this waqf is a solution right in front of our eyes.  Currently, the nation's economy needs capital assistance.  For MSMEs, waqf can be used as business capital," explained Suko.


 She continued, the distribution of waqf business assistance could be in the form of cash assistance or productive assets such as motorbikes, carts, storefronts and so on.


 "If these assets are used for business activities on a daily basis, the rewards will flow," added Suko, Thursday (7/22/2021).


Suko further explained the world is ruled by the system of interest-based transactions. Those who take loans must also pay the interest. Sadly, there are still many people who do not have access to financial institutions. As a result, they take loans from moneylenders.


 "We present Productive Capital Waqf as a solution for people who want to stay away from interest-based loans. It will give them  peace of mind because it complies with the sharia," she said.


 On this occasion, Suko invites the community to rise up through the instrument that Allah has presented i.e. waqf.  Through Productive Capital Waqf, Global Waqf wants to provide business capital assistance to MSME owners.


 "We also don't just give business grants and then just leave. Rather, we also help MSMEs with business assistance to improve their entrepreneurship skills and economic independence," she said.


Suko explains how the program began in August 2020 as Waqf for Micro-Businesses as a solution to help MSMEs get access to business capital.


 "In almost a year we have handed out more than IDR 5.2 billion to almost 4,000 MSMEs.  Alhamdulillah many of them are happy," she said.


In its implementation, this program has collaborated with several Provincial Governments in Indonesia and is now starting to collaborate with the Ministry of Cooperatives and MSMEs.


"We want to support the economy of this community with productive capital waqf.  We want people to be able to benefit from waqf as business capital,” said Suko.


For now, the number of MSMEs assisted by Productive Capital Waqf is around 10,000.  The recipients of the waqf business assets are around 200 recipients.  In addition, around 5,500 MSMEs have received cash assistance. []