The issue of venture capital (VC) attracts serious attention from government and private sector. VC aims to provide start-up capital for business. A conference on this matter has been organized by Ibn Zohr University of Morocco. Located in Agadir, a famous tourism city in Morocco, the two-days conference discusses the role of VC particularly in economic development. Experience of several countries were explored in the conference.

Speaking on the conference on Thursday (12/1), Puskas BAZNAS Director, Irfan Syauqi Beik, highlights the importance of utilizing Islamic social finance instrument as the source of fund for venture capital. Irfan discusses Indonesia's experience in utilizing Islamic social finance instruments for venture capital development.

In his presentation, Irfan explains three models that have been implemented in Indonesia. Those are: pure cash waqf-based venture capital, combination of charity and Islamic microfinance-based venture capital, and zakat-based venture capital. Irfan said that BAZNAS, as the highest zakat authority, has experience through Bayt al Qiradh (BQB) program. BQB acts as fund provider for starting and developing micro-business owned by mustahik (eligible zakat recipient).

The participants agree that zakat and cash waqf-based venture capital should be explored further since the two instruments have huge economic potential. The role of the two instruments becomes extremely important especially during these economic turbulences. Irfan said that optimization of zakat and cash waqf will have positive impact on people's welfare. (PUSKAS NEWS/