21 October, 2016

Bank Indonesia Launch Zakat Core Principles

Deputy Governor of Bank Indonesia, Hendar, representing the Republic of Indonesia launched the Zakat Core Principles document on World Humanitarian Summit of the United Nations in Istanbul, Turkey on May 23, 2016 last. "Zakat Core Principles is Indonesia's contribution to the social development of Islamic finance and regulatory standards zakat better in the world. The document contains 18 principles that govern the management of six major aspects of zakat, namely institutional legal, oversight, governance, risk management, intermediation and shariah governance ", as described Hendar before the leaders and delegates from various countries and international agencies. "The preparation of these documents is initiated by Bank Indonesia in cooperation with the National Zakat (Baznas), Islamic Research and Training Institute-Islamic Development Bank (IRTI-IDB) and the eight other countries that are members of the international working group (IWG)", he added.

The main principles of zakat management aims to improve the quality of the management of zakat management to be more effective in mobilizing public social funds for improving the welfare of people in various parts of the world. To support its application in various countries, the main principles of zakat management prepared by taking into account the specific conditions in each country, encourage better governance governance, accommodating and in line with the regulatory framework associated with the sub-sectors of other Islamic financial, and supports connectivity with the real sector and the development of human capital.

On the occasion, President of the Islamic Development Bank (IDB) Ahmad Ali Al-Madani, Secretary General of the Organization for Islamic Cooperation (OIC) Iyad Madani, and the Sultan of Perak Malaysia Sultan Nazrin Shah as co-chair of the United Nations High-Level Panel for Humanitarian Financing receive directly document Zakat Core Principles of Deputy Governor Hendar. Leaders and delegates of various countries and international agencies in attendance welcomed the presence of these standards and believes social Islamic finance through the charity could provide support for poverty alleviation programs and the completion of a humanitarian crisis. In the future, Indonesia is fully committed to becoming a center for the establishment of international institutions in charge of the development and implementation of zakat management standards, as well as preparing the efforts to formulate the main principles of better regulation endowments through the Waqf Core Principles.
source : www.bi.go.id

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