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Jakarta, June 14, 2017 ─ The President of the Republic of Indonesia (RI) Joko Widodo officially launched zakat (alms) payments through Laku Pandai (branchless banking services towards financial inclusion) agents at the State Palace, on Wednesday (Jun. 14), at the same time when he paid zakat to the National Alms Agency (BAZNAS). The event was attended by RI Vice President, Chairman of Financial Services Authority's (OJK) Board of Commissioners, BAZNAS Chairman, and ministers of the Working Cabinet, including leaders of various agencies.

Zakat distribution through Laku Pandai agents signifies an implementation of Presidential Regulation No. 82 of 2016 on the National Strategy on Financial Inclusion (SNKI) that promotes achievement of the financial inclusion target of 75 percent by 2019.

Employing Laku Pandai agents is one way to facilitate zakat payers (muzakis) making zakat payments and help distribute the zakat to its recipients (mustahiks).

"Paying zakat through Laku Pandai agents is expected to be one of the common solutions for optimizing zakat collection and distribution, in order to support efforts made towards income equality and poverty alleviation in Indonesia," Chairman of OJK's Board of Commissioners Muliaman D Hadad said.

Muliaman explained that zakat was linked to financial inclusion as it had a critical role in alleviating poverty. Zakat played an important role in creating wider financial access and alleviating poverty, thus it was categorized as one of the most vital redistribution instruments.

Earlier, the OJK and the BAZNAS signed a memorandum of understanding and a cooperation agreement on "Synergy between Zakat Inclusion and Financial Literacy and Inclusion Programs," as one of the zakat development measures in Indonesia, a critical step in relation to efforts to expand zakat programs widely, so they will be easier to access and the public can pay their zakat through available financial services.

Since its launch in 2015 until March 2017, there had been 328,466 Laku Pandai agents and 5,119,595 accounts with total deposit funds worth IDR 2.1 billion. In terms of operation, there are 19 commercial banks and two Sharia commercial banks that offer Laku Pandai services across 508 regencies/cities in 34 provinces.

On that occasion, before the President, the OJK presented representatives of Laku Pandai agents from eight banks, including Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI), Mandiri Bank, BRI Syariah, Bank Tabungan Negara (BTN), Bank Jabar Banten (BJB), Bank Tabungan Pensiunan Nasional (BTPN) and BTPN Syariah. These agents came from various areas, including Jayapura (Papua); Penajam (East Kalimantan); North Lombok (West Nusa Tenggara); Sampang (Madura); Blora (Central Java); Ciranjang (Cianjur, West Java); BTPN and BTPN Syariah Ciranjang (Cianjur, West Java). All of the agents perform direct transactions with muzakis who want to pay zakat through those banks.

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For more information:

Anggar B. Nuraini, Deputy Commissioner of Consumer Education and Protection Tel: +62 21 2960 0000 E-mail: b_nuraini@ojk.go.id  www.ojk.go.id