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

To:
Management of Micro Finance Institutions,
At your place.

COPY

CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 36/SEOJK.06/2025

ON

THE IMPLEMENTATION OF THE MICRO WAQF PROGRAM

In accordance with the mandate of Article 97 paragraph (4) of Financial Services Authority Regulation Number 41 of 2024 concerning Micro Finance Institutions (State Gazette of the Republic of Indonesia Year 2024 Number 54, Supplement to the State Gazette of the Republic of Indonesia Number 122) and the needs regarding the management of remaining funds in micro finance institutions that conduct business activities based on Sharia principles as organizers of the micro waqf program, it is necessary to regulate the implementation of the micro waqf program in this Financial Services Authority Circular as follows:

I. GENERAL PROVISIONS

In this Financial Services Authority Circular, the following definitions apply:

1. Micro Finance Institution is a financial institution specifically established to provide business development services and community empowerment, either through financing in micro-scale businesses to members and the public, managing savings, or providing business development consulting services that are not solely profit-seeking.

2. Micro Waqf Program is an empowerment program formed with the aim of providing capital access for small communities that do not yet have access to formal financial institutions and plays a role in empowering communities around Islamic boarding schools with a mentoring pattern.

3. Micro Waqf Program Owner is a Zakat Management Agency that has received permission from the Ministry of Religious Affairs and is responsible for the sustainability of the Micro Waqf Program.

4. Micro Waqf Program Funds are funds from donors that are handed over to Micro Finance Institutions that conduct business activities based on Sharia principles through the Micro Waqf Program Owner for the needs of establishing and operational capital for the implementation of the Micro Waqf Program.

5. Financing is the provision of funds by Micro Finance Institutions to the public that must be returned according to the agreement based on Sharia principles.

6. Savings are funds entrusted by the public to Micro Finance Institutions in the form of savings and/or deposits based on a fund storage agreement.

7. Depositor is a party that places their funds in Micro Finance Institutions based on an agreement.

8. Community Business Groups Around Islamic Boarding Schools, hereinafter abbreviated as KUMPI, are community groups that have business potential, consisting of 5 (five) people who agree to bind themselves to cooperate in developing productive economic businesses by utilizing the Micro Waqf Program or utilizing programs from other parties to be able to increase and expand their businesses, increase their religious understanding, and increase the economic welfare of their households.

9. Weekly Halaqoh, hereinafter abbreviated as HALMI, is a meeting between 2 (two) to 5 (five) KUMPIs that is held regularly with schedules and agendas determined by the management and/or officials of Micro Finance Institutions that conduct business activities based on Sharia principles that implement the Micro Waqf Program.

10. Sharia Principles are Islamic legal principles based on fatwas and/or statements of Sharia compliance issued by institutions that have authority in determining fatwas in the field of Sharia.

11. Management is the organ of Micro Finance Institutions that conduct business activities based on Sharia Principles that have the authority and are fully responsible for the management of Micro Finance Institutions that conduct business activities based on Sharia Principles for the benefit of Micro Finance Institutions that conduct business activities based on Sharia Principles, in accordance with the intent and purpose of Micro Finance Institutions that conduct business activities based on Sharia Principles and represent Micro Finance Institutions that conduct business activities based on Sharia Principles, both inside and outside the court in accordance with the articles of association.

12. Supervisor is the organ of Micro Finance Institutions that conduct business activities based on Sharia Principles tasked with conducting general and/or specific supervision in accordance with the articles of association and providing advice to the Management.

13. Sharia Supervisory Board, hereinafter abbreviated as DPS, is a party that has the task and function of supervising the implementation of activities of Micro Finance Institutions that conduct business activities based on Sharia Principles to ensure compliance with Sharia Principles.

14. Liquidation is the settlement of all assets and obligations of Micro Finance Institutions that conduct business activities based on Sharia Principles as a result of the revocation of the business license of Micro Finance Institutions that conduct business activities based on Sharia Principles and dissolution.

15. Liquidation Team is a team tasked with conducting Liquidation, formed by the general meeting of shareholders, general meeting of members, or Financial Services Authority.

16. Examination is a series of activities to collect, search, process, and evaluate data and information regarding the business activities of Micro Finance Institutions that conduct business activities based on Sharia Principles.

17. Examiner is an employee of the Financial Services Authority, a regional government employee of a district/city, or other parties appointed by the Financial Services Authority.

II. IMPLEMENTATION OF THE MICRO WAQF PROGRAM

1. Before conducting business activities, Micro Finance Institutions must have a business license from the Financial Services Authority.

2. To obtain the business license as referred to in item 1, the Management submits a business license application by referring to Financial Services Authority Regulation Number 41 of 2024 concerning Micro Finance Institutions.

3. The Micro Waqf Program is one of the business activities conducted by Micro Finance Institutions that conduct business activities based on Sharia Principles, which have obtained a business license from the Financial Services Authority.

4. The legal form of Micro Finance Institutions is a Limited Liability Company or a Cooperative. Furthermore, for legal entities in the form of a cooperative, the Management may appoint managers to implement the Micro Waqf Program, namely parties one level below the Management who execute operational functions.

5. The implementation of the Micro Waqf Program refers to the program guidelines and standard operating procedures prepared by the Micro Waqf Program Owner.

6. The business activities of Micro Finance Institutions include business development services and community empowerment, through:
   a. financing in micro-scale businesses to the public; b. management of Savings; or
   c. provision of business development consulting services.

7. In the event that the business activities of Micro Finance Institutions are implemented based on Sharia Principles, the implementation of such business activities must fulfill the principles of justice ('adl), balance (tawazun), benefit (maslahah), and universalism (alamiyah) and must not contain gharar, maysir, riba, zhulm, risywah, and haram objects.

III. CAPITALIZATION

1. The capitalization of Micro Finance Institutions consists of:
   a. paid-in capital for Micro Finance Institutions in the form of a limited liability company; or b. the sum of basic savings, mandatory savings, and donations, for Micro Finance Institutions in the form of a cooperative legal entity.

2. Paid-in capital or the sum of basic savings, mandatory savings, and donations at the establishment of Micro Finance Institutions in accordance with Article 7 paragraph (2) of Financial Services Authority Regulation Number 41 of 2024 concerning Micro Finance Institutions.

3. Program Owners may establish capitalization provisions in program guidelines as long as they do not conflict with Article 7 paragraph (2) of Financial Services Authority Regulation Number 41 of 2024 concerning Micro Finance Institutions. Paid-in capital or the sum of basic savings, mandatory savings, and donations as referred to in item 2 must be paid in cash and in full, placed in the form of time deposits in the name of Micro Finance Institutions at one of the Sharia banks or Sharia business units of conventional banks in Indonesia.

4. The funding sources of Micro Finance Institutions come from:
   a. equity; b. Savings;
   c. loans;
   d. donations; and/or e. waqf.

IV. PLACEMENT OF EXCESS FUNDS

1. Micro Finance Institutions that conduct business activities based on Sharia Principles are not permitted to place their excess funds other than in:
   a. savings at Sharia commercial banks, Sharia business units of commercial banks, and/or Sharia people's economy banks; b. current accounts at Sharia commercial banks, Sharia business units of commercial banks, and/or Sharia people's economy banks;
   c. time deposits at Sharia commercial banks, Sharia business units of commercial banks, and/or Sharia people's economy banks;
   d. deposit certificates at Sharia commercial banks, Sharia business units of commercial banks, and/or Sharia people's economy banks; and/or e. securities issued by the Republic of Indonesia and Bank Indonesia.

2. The placement of excess funds in time deposits as referred to in item 1 letter c or deposit certificates as referred to in item 1 letter d is determined by the Micro Waqf Program Owner after coordinating with the Financial Services Authority.

V. SAVINGS

1. Micro Finance Institutions that conduct third-party fund management activities in the form of Savings must administer Savings from Depositors and provide proof of Savings.

2. In conducting third-party fund management activities in the form of Savings, Micro Finance Institutions must meet the conditions set forth in the program guidelines from the Micro Waqf Program Owner. Program guidelines are prepared by the Micro Waqf Program Owner by taking into account input from the Financial Services Authority.

3. Micro Finance Institutions are not permitted to provide information to Depositors and Savings, except in the event of requests for tax information, judicial requests in criminal and civil cases, and requests for information from legal heirs, as regulated in Article 131 paragraph (2) of Financial Services Authority Regulation Number 41 of 2024 concerning Micro Finance Institutions.

VI. FINANCING DISTRIBUTION

1. In carrying out business activities in the distribution of Financing, Micro Finance Institutions must conduct an analysis of the feasibility of Financing distribution. The distribution of Financing can be conducted non-commercially and/or semi-commercially by paying attention to the matters contained in the program guidelines from the Micro Waqf Program Owner.

2. In carrying out Financing distribution activities to members or the public, Micro Finance Institutions may provide mentoring services with the imposition of ujrah or without the imposition of ujrah to members and/or the public.

3. The amount of mentoring ujrah may be determined by the Micro Waqf Program Owner by taking into account input from the Financial Services Authority.

VII. ROLES OF THE PARTIES

1. The Financial Services Authority conducts supervision of Micro Finance Institutions, including in conducting business activities based on Sharia Principles, including in implementing the Micro Waqf Program.

2. The management of community empowerment programs around Islamic boarding schools and/or community organizations based on Sharia principles is directly coordinated by the Micro Waqf Program Owner to better optimize the development of various policies from program evaluations.

3. Micro Waqf Program Owners assist in formulating guidelines regarding the fulfillment of regulations, including anti-fraud strategy guidelines and guidelines on anti-money laundering, counter-terrorism financing, and counter-proliferation financing of weapons of mass destruction.

4. Micro Finance Institutions may coordinate and/or consult with Micro Waqf Program Owners in carrying out operational activities of the Micro Waqf Program.

5. Micro Finance Institutions may cooperate with other parties, including ministries, agencies, and universities, in implementing their programs. The implementation of cooperation with other parties is based on the approval of the Micro Waqf Program Owner by considering the financial health conditions of Micro Finance Institutions that conduct business activities based on Sharia Principles.

6. Micro Finance Institution Associations play an active role in publicizing and socializing the Micro Waqf Program to the public and providing training and increasing human resource capacity in the management of the Micro Waqf Program.

VIII. TERMINATION OF THE MICRO WAQF PROGRAM

1. The termination of the Micro Waqf Program can be conducted in the event that Micro Finance Institutions:
   a. voluntarily apply, which is decided through a general meeting of members or general meeting of shareholders; or b. are subject to the sanction of business license revocation by the Financial Services Authority due to violations of regulations.

2. The business license revocation process refers to Financial Services Authority Regulation Number 41 of 2024 concerning Micro Finance Institutions and Financial Services Authority Regulation Number 49 of 2024 concerning Supervision, Determination of Supervision Status, and Follow-up of Supervision of Financing Institutions, Venture Capital Companies, Micro Finance Institutions, and Other Financial Service Institutions.

3. In the context of the settlement process, if there are excess assets after the settlement of all obligations from Micro Finance Institutions that conduct business activities based on Sharia Principles, the aforementioned excess assets are returned to the Micro Waqf Program Owner for subsequent distribution to other Micro Finance Institutions that conduct business activities based on Sharia Principles that implement the Micro Waqf Program.

4. The revocation of the business license of Micro Finance Institutions that conduct business activities based on Sharia Principles will be followed by the dissolution of the legal entity and the Liquidation process by referring to the regulations stipulated in Financial Services Authority Regulation Number 41 of 2024 concerning Micro Finance Institutions.

IX. CLOSING

The provisions in this Financial Services Authority Circular shall take effect on the date of determination.

Determined in Jakarta on December 1, 2025

EXECUTIVE HEAD OF SUPERVISOR OF FINANCING INSTITUTIONS, VENTURE CAPITAL COMPANIES, MICRO FINANCE INSTITUTIONS, AND OTHER FINANCIAL SERVICE INSTITUTIONS FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, AGUSMAN

Signed,
Aat Windradi
Head of Legal Development Directorate
Legal Department

This copy is in accordance with the original.