OJK Circular No. 36/SEOJK.06/2025 on the Implementation of the Micro Waqf Program

Financial Services Authority Circular Number 36/SEOJK.06/2025 regarding the Implementation of the Micro Waqf Program

Abstract: This Financial Services Authority Circular is drafted as a follow-up to the mandate of Article 97 paragraph (4) of Financial Services Authority Regulation Number 41 of 2024 regarding Microfinance Institutions, to regulate the implementation of micro waqf by Microfinance Institutions conducting business activities based on Sharia Principles.

The legal basis for this Financial Services Authority Circular is: POJK No. 41 of 2024.

The Financial Services Authority Circular regarding the Implementation of the Micro Waqf Program regulates the following matters: a. implementation of the micro waqf program; b. capitalization; placement of excess funds; c. deposits; d. financing distribution; e. roles of the parties; and f. termination of the micro waqf program.

Note: This Financial Services Authority Circular takes effect on the date of establishment. This Financial Services Authority Circular was established on December 1, 2025.

The Micro Waqf Program is one of the business activities conducted by Microfinance Institutions that have obtained a business license from the Financial Services Authority, referring to Financial Services Authority Regulation Number 41 of 2024 regarding Microfinance Institutions. The legal form of Microfinance Institutions is a limited liability company or a cooperative. Subsequently, for legal entities in the form of cooperatives, the Management may appoint an operator to implement the Micro Waqf Program, namely a party one level below the Management that carries out operations. The implementation of the Micro Waqf Program refers to the program guidelines and standard operating procedures drafted by the Micro Waqf Program Owner.

The business activities of Microfinance Institutions include business development services and community empowerment, through: a. financing for micro-scale businesses to the community; b. management of Deposits; or c. provision of business development consulting services.

The Program Owner may establish capitalization provisions in the program guidelines, provided they do not conflict with Article 7 paragraph (2) of the Financial Services Authority Regulation regarding Microfinance Institutions. Paid-up capital or the sum of basic deposits, mandatory deposits, and donations must be paid in full in cash and placed in the form of time deposits under the name of the Microfinance Institution at one of the Sharia banks or Sharia business units of conventional banks in Indonesia.

Funding sources for Microfinance Institutions come from equity, deposits, loans, donations, and/or waqf. The placement of excess funds in time deposits or certificates of deposit is determined by the Micro Waqf Program Owner after coordinating with the Financial Services Authority.

In conducting third-party fund management activities in the form of deposits, Microfinance Institutions: a. must administer Deposits from Depositors and provide proof of Deposit; b. pay attention to matters contained in the program guidelines drafted by the Micro Waqf Program Owner, taking into account input from the Financial Services Authority; and c. are not permitted to provide information about Depositors and Deposits, except in cases of tax interest information requests, judicial requests in criminal and civil cases, and information requests from legitimate heirs.

In carrying out financing distribution business activities, Microfinance Institutions must conduct an analysis of the feasibility of financing distribution. Financing distribution can be conducted on a non-commercial and/or semi-commercial basis, paying attention to matters contained in the program guidelines from the Micro Waqf Program Owner.

Microfinance Institutions may provide mentoring services with the imposition of ujrah (fee) determined by the Micro Waqf Program Owner, taking into account input from the Financial Services Authority, or without the imposition of ujrah.

The management of community empowerment programs around pesantren (Islamic boarding schools) and/or community organizations based on Sharia principles is directly coordinated by the Micro Waqf Program Owner to more optimally develop various policies from program evaluation. The Micro Waqf Program Owner assists in drafting guidelines regarding compliance with regulations, including anti-fraud strategy guidelines and guidelines for anti-money laundering, counter-terrorism financing, and counter-proliferation financing.

The termination of the Micro Waqf Program can be carried out in the event that the Microfinance Institution: a. voluntarily applies, decided through a member meeting; b. is subject to the revocation of its business license by the Financial Services Authority due to violations of regulations.

In the event of settlement, if there are excess assets after the completion of all obligations by the Microfinance Institution conducting business activities based on Sharia Principles, the aforementioned excess assets are returned to the Micro Waqf Program Owner for subsequent distribution to other Microfinance Institutions conducting business activities based on Sharia Principles that are implementing the Micro Waqf Program.