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Monday, June 17, 2024

Launch Partners

Case study: Indonesia’s first online retail cash Waqf-linked Sukuk offering

The Indonesian government opened its second retail cash Waqf-linked Sukuk (CWLS) series SWR002 on the 9th April 2021, raising IDR24.14 billion (US$1.59 million) in funds. The issuance is the Indonesian government’s first online offering for the CWLS series. The two-year facility based on the Wakalah structure with a fixed rate of 5.57% per annum and monthly coupon payments closed on the 3rd June 2021.

The Sukuk offering follows the first issuance under the retail CWLS series which opened for bidding from the 9th October to the 12th November 2020 and raised IDR14.91 billion (US$980,441) in funds. The second Sukuk offering attracted 91.03% new contributors and saw participation from 588 individual contributors and three institutional contributors. Online orders represented 63.67% of funds raised with 483 contributors participating.

The cash Waqf facility uses government assets and projects as underlying assets. The government appointed six Islamic banks as distribution partners including Bank Syariah Indonesia, Bank Muamalat Indonesia, Bank CIMB Niaga Syariah, Bank Pertama Syariah, Bank Mega Syariah and Bank Syariah Bukopin.

The banks are also appointed as administrators by Lembaga Keuangan Syariah-Penerima Wakaf Uang, the body regulating Islamic financial institutions which receive cash Waqf, and approved by Badan Wakaf Indonesia, the Indonesian Waqf board.

Figure 1: Distribution partners and social programs

Distribution partner

Waqf manager

Social programs

Bank Syariah Indonesia


– Islamic boarding school

– Dhuafa Santri scholarship

– MSME capital assistance


– Bakti Guru

– Menteri scholarship

– Sang Surya scholarship

– MSME empowerment

– Mobile clinics

Bank Muamalat Indonesia

Baitulmaal Muamalat

– Undergraduate scholarship program

– MSME program

Bank CIMB Niaga Syariah

Dompet Dhuafa Republika

– Funding treatment for poor patients

– Tuition assistance for Dhuafa students

Bank Permata Syariah

Yayasan Pesantren Islam Al-Azhar

– Financial assistance for cattle farmers

Bank Mega Syariah

Badan Wakaf Indonesia

– Procurement of mobile screening retina and cataract

Dewan Da’wah Islamiyah Indonesia

– Dhuafa orphan scholarship

Bank Syariah Bukopin

Yayasan Pesantren Islam Al-Azhar

– Cattle farmer empowerment

Yayasan Global Wakaf

– Waqf MSME program

– Waqf rice field

Source: Direktorat Jenderal Pengelolaan Pembiayaan dan Risiko (DJPPR)

The Indonesian government has since closed its third issuance under the retail CWLS series on the 7th July 2022, which was its largest orderbook, raising IDR38.25 billion (US$2.51 million) in funds. The inaugural retail issuance will mature next month on the 10th November 2022.

Indonesian Government SWR002 cash Waqf-linked Sukuk

IDR24.14 billion (US$1.59 million)

3rd June 2021
Summary of terms and conditions
Indonesian government
Size of issue
IDR24.14 billion (US$1.59 million)
Mode of issue
Funding social projects
Two years
Profit rate
5.57% per annum
Indonesian rupiah
Maturity date)
3rd June 2021
Governing law
Indonesian law
Islamic structure
Minimum investment
IDR1 million (US$65.71)
Underlying asset
Government assets and projects
Investor breakdown
Individual investors, institutional investors

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