Jakarta. The Religious Affairs Ministry on Thursday unveiled plans to establish a national endowment management body aimed at optimizing the vast financial potential of religious communities across the country.

The proposed institution, to be known as the Fund Management Agency of the Adherents (LPDU), is designed as an inclusive platform serving all officially recognized religions in Indonesia, including Islam, Catholicism, Protestantism, Hinduism, Buddhism, and Confucianism.

Religious Affairs Minister Nasaruddin Umar said the initiative could mobilize public funds of up to Rp 1,200 trillion ($70.6 billion) annually, describing the sector’s financial potential as a “sleeping giant.”

“The potential of community funds is like a sleeping giant. There are many ways to mobilize currently unproductive funds. In total, it could reach Rp 1,200 trillion per year,” Nasaruddin said in Jakarta.

He cited several major funding sources that remain underutilized. Zakat, for example, has an estimated annual potential of Rp 320 trillion, but realized collections in 2025 reached only around Rp 41 trillion. Waqf assets are estimated at Rp 178 trillion, while current mobilization stands at roughly Rp 1 trillion. Meanwhile, the economic value of annual qurban funds is estimated at Rp 72 trillion.

To strengthen governance and ensure transparency, the ministry plans to collaborate with the Financial Services Authority (OJK) in overseeing fund flows and management.

As a signal of the government’s commitment, the LPDU headquarters will be built in the strategic Hotel Indonesia Roundabout area in central Jakarta, following the direction from President Prabowo Subianto. The planned 40-story building is expected to support the institution’s operations.

The government aims to complete the establishment of the agency within this year, positioning it as a milestone in strengthening the economic independence of Indonesia’s religious communities.