Islamic finance institutions target waqf and energy transition funding

Islamic financial institutions are highlighting the potential of Sharia-compliant instruments to drive economic growth and sustainable development. At the 2nd Global Conference on Waqf Development in Jakarta, Bank Syariah Indonesia (BSI) emphasized the role of productive waqf in enhancing community welfare. The Indonesian Waqf Board (BWI) estimates the annual potential for cash waqf at Rp180 trillion, though actual collection in 2025 was recorded at Rp4.72 trillion.

Separately, during an international forum held alongside the IMF-World Bank Group Annual Meetings in Bangkok, Bank Syariah Nasional (Bank BSN) discussed how Islamic finance can fund energy transitions, sustainable infrastructure, and SME development. Experts noted that while the sector holds significant opportunities, market fragmentation within the ASEAN region remains a challenge. Strengthening cross-border cooperation and market interoperability is seen as essential to reaching over 250 million Muslims in the region and supporting global economic dynamics.