BPKH deposits can significantly reduce poverty by empowering Islamic banks to provide financial services to low-income individuals and communities. By depositing a substantial portion of their funds into Islamic banks, BPKH can enable these institutions to expand their reach and offer a broader range of financial products, such as microfinance loans, affordable housing financing, and other financial services.
However, to maximize the impact of these deposits, Islamic banks must ensure effective utilization of funds, strong risk management practices, targeted outreach and financial literacy programs, and collaboration with government and NGOs. By addressing these factors, BPKH deposits can play a pivotal role in achieving SDG 1: No Poverty in Indonesia. (Red.Raeef)