Masjid Istiqlal has emerged as a focal point in Indonesia’s Islamic philanthropy sector by entering the capital market through productive waqf schemes, prompting detailed responses from the Indonesia Stock Exchange (BEI) and the Financial Services Authority (OJK).
According to reports from KabarBursa, the integration of Islamic philanthropic funds into the stock market involves professional management via investment managers to support community economic empowerment. This development connects religious endowments with Sharia-compliant financial instruments, marking a notable shift in how public religious funds are utilized in the country’s financial ecosystem.
The initiative builds on foundational steps taken by the Badan Pengelola Masjid Istiqlal (BPMI), which previously established the Istiqlal Global Fund and partnered with PT Majoris Asset Management to launch Wakaf Saham Istiqlal in December 2025. Through this program, share-based waqf assets are managed under strict Islamic principles, channeling investment returns into social programs and support for local micro, small, and medium enterprises (MSMEs).
BEI Perspective on Sharia Capital Market Philanthropy
Bursa Efek Indonesia (BEI) President Director Jeffrey Hendrik explained that channeling Islamic philanthropic funds into the exchange is part of broader institutional support for Sharia capital market growth. Speaking at the Main Hall BEI in Jakarta, Hendrik noted that these funds are handled by professional investment managers to ensure structured management.
“So the Islamic philanthropy channeled to Masjid Istiqlal will be managed professionally by investment managers. That is what is currently being worked on,” Hendrik told reporters, as cited by KabarBursa.
Hendrik added that the waqf assets can be deployed across various Sharia capital market investment products, including mutual funds backed by stock portfolios as underlying assets. While he did not specify the exact total value of productive waqf funds currently under management within the mechanism, he confirmed that the operational rollout has already begun.
OJK Regulatory Stance and Governance Standards
The Financial Services Authority (OJK) addressed the developments by confirming that discussions are underway regarding the management of waqf funds and financial management bodies through the capital market.
Hasan Fawzi, OJK Chief Executive of Capital Market Supervision, Derivatives Finance, and Carbon Exchange, stated that public funds intersecting with investment activities must adhere to strict transparency, good governance, and consumer protection frameworks.
“We have discussed this as well, yes. But it appears this is still in the discussion stage and will later be under the compartment of Madam Chair and the Deputy Commissioners. We are currently discussing the matter,” Hasan said, according to KabarBursa.
Hasan emphasized that if mandated and required to govern such activities, the regulator stands ready to issue specific provisions. The priority remains safeguarding public investors and ensuring that any financial instruments involving societal funds maintain high standards of accountability.
Potential and Realization in Indonesian Waqf
The integration of Masjid Istiqlal into the capital market addresses a significant disparity between the potential collection of waqf funds and their actual realization nationwide.
Data from the Indonesian Waqf Board (Badan Wakaf Indonesia) indicates that realized cash waqf collection stands at approximately Rp3.5 trillion. In contrast, national waqf potential is estimated to reach Rp181 trillion annually, leaving a wide margin for productive expansion through modern financial instruments.
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