Contemporary Issues of Waqf in Indonesia

About the Journal Journal of Accounting Research, Utility Finance and Digital Assets (JARUDA), 2024

This research is motivated by the condition and development of Islamic finance in the practice of cash waqf at Islamic Financial Institutions through BWI by giving rise to Islamic financial innovation, namely CWLS through SWR products. In the report received, SWR001 to SWR004 have been launched, based on data that has been analyzed cash waqf receipts through this program have experienced a significant increase. This research measures the performance of receiving cash waqf practice reports through the BWI LKS. This research is a type of quantitative research using the common size analysis method on SWR001 products against SWR002 and SWR003 against SWR004. The results of this research show that, overall, the practice of cash waqf has experienced an extraordinary increase through the development of Islamic finance, namely Retail Waqf Sukuk (SWR). In the SWR004 product there was a large increase, namely 74.64% with a nominal value of IDR 112,563 billion with a total of 709 waqifs. The latest finding in this research is the discovery of 3 strong pieces of evidence regarding waqifs on the total receipts of cash waqf. This also shows that the greater a person donates the assets he loves, the greater the virtue he will gain. This virtue can make a person more generous and a good person, better than before.

Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah

Islamic Social Finance, 2022

Waqf as an instrument of Islamic philanthropy plays an important role not only in social but also economic aspects. This is shown from the purpose of waqf is to improve the welfare of the people and reduce wealth inequality. This study aims to find the priority aspects of cash waqf at Islamic bank or LKS-PWU (Lembaga Keuangan Syariah-Pengelola Wakaf Uang) in Indonesia. The analytical method used in this study is the Delphi method with a questionnaire. In addition, the data used in this study are the results of interviews with academics, practitioners and regulators of waqf and Islamic economics in general. Meanwhile, based on the results of the analysis, it was found that of the 23 variable aspects of the LKS-PWU cash waqf in Indonesia, 18 variables had been agreed upon by experts and only 5 variables were not agreed upon. The five variables that are not agreed upon are waqf socialization, administrative completeness, violation sanctions, time period, and management guarantees. Furthermore, from the results of calculations using the Delphi method, 3 main priority aspects of the cash waqf of LKS-PWU in Indonesia were also found, namely professional management, management productivity, and community education.

JPPI (Jurnal Penelitian Pendidikan Indonesia)

There is assumption in the community that waqf are physically permanent, and handed over directly to Nazir, even though there are also cash waqf through Islamic financial institutions (IFI). The present research was conducted using a qualitative approach This study aims to analyze the implementation of waqf planning by waqif, waqf development by waqf bodies and the structuring of IFI products in Indonesia related to waqf. This study used a qualitative descriptive method using an online questionnaire to waqif and in-depth interviews with waqf institutions and IFI, then analyzed descriptively qualitatively. The results showed that the development of endowments through Islamic financial institutions are carried out by two methods; namely, the development of endowments initiated by LKS and are offered to Waqf Board, and the development of waqf was initiated and offered to LKS by the Waqf Board and the structure of the waqf products consists of two models. One model is not directly made ...

Al-Uqud Journal, 2021

This study attempts to identify the causes and dominant factors that hinder the development of cash waqf in Indonesia, using the IFE-EFE Matrix and SWOT methods, while offering solutions to solve it. Based on the results of IFE analysis, the highest-rank of strengths is the ability of cash waqf in expanding the base of waqf fund sources followed by the ease and zero cost of funds. In comparison, the top weaknesses are the lack of socialisation to the community and the lack of professional nazhir human resources. The results of EFE analysis imply the highest-rank opportunity is the potential of unlimited cash waqf followed by the emergence of many sharia financial institutions and Islamic economics study programs in universities. Meanwhile, the top threat is a weak political will of authorities, followed by the majority of traditional nazhir. It is expected that there will be a joint commitment from various parties, both from policymakers and academics and practitioners to support and encourage efforts to develop the Islamic (social) finance industry, especially in developing cash waqf in Indonesia.

Padjadjaran: jurnal ilmu hukum (Journal of law), 2019

Cash waqf is an innovative instrument of waqf aiming to create social welfare. It is expected that cash waqf enables extensive public participation to support social welfare. However, in reality, cash waqf management in Indonesia has not yet resulted optimal benefit. Based on the Law Number 41 of 2004 on Waqf, three institutions carry out cash waqf management. They are the Indonesian Waqf Board as the collector and the developer, Nazhir as the manager, and the Islamic Financial Institution as the collector. The three institutions make the cash waqf management and development ineffective and not optimal. Based on the data from the Indonesian Waqf Board, of the total potential cash waqf IDR180 Trillion, only IDR400 billion was realized. This study is a normative juridical legal study employing descriptive method. The results reveal that the role of the Islamic Financial Institution, Islamic bank, as collector can actually be expanded. Thus, it covers the management and distribution roles like a Waqf Bank in Bangladesh, the Social Islami Bank Ltd. (formerly known as Social Investment Bank Ltd). Islamic bank has capability and professionalism of management and distribution of funds generated from the cash waqf.

Jurnal Al-Iqtishad, 2023

The Indonesian Waqf Agency (BWI) of Riau exists as an independent institution to support the development of waqf in Riau Province. As an independent institution, BWI functions, one of which is to manage and develop waqf assets on a national and international scale. However, phenomena in the field show that waqf funds at BWI are still relatively small to be managed. This study aims to analyze productive waqf financial management at BWI Riau Province. This research is field research (field research) with a qualitative approach. The results of the study show that the Indonesian Waqf Agency (BWI) of Riau Province has carried out financial management well and at this time productive waqf financial management has been carried out according to the standards set by BWI. However, there are drawbacks, namely that it is only limited to managing the types of cash waqf deposited in Islamic banks. In addition, BWI has problems in financial management, namely the absence of a Sharia Guarantee Institution. This research is expected to provide recommendations for the BWI of Riau Province in managing productive waqf finances as well as material for evaluating the functions of BWI.

2017

One type of contemporary waqf is cash waqf. Cash Waqf provide more giving mashlahah because the money can be used for many things other than endowments. Form of cash waqf development is to be invested in Islamic financial institutions were profitable and secure. This paper aims to integrate the cash waqf as a social fund to the financial intermediation role on Islamic Micro Finance Institutions. Endowments in cash will be an alternative source of capital LKMS cheap and mashlahah. The pattern is divided into a cash waqf endowments temporary cash invested in sharia-term investment products, such as savings deposits and capital investments. Average cash waqf permanently included as a component of capital. Endowment funds will be disbursed on micro-finance, the results of which will be channelled to the social fund. With this pattern expected cash waqf and where LKMS can benefit the wider community.

2018

Cash waqf is one of the alternative solutions amid the inability of government in providing prosperity for Indonesian society. On the other side, the system of cash waqf return allocation need to be rejuvenated in a professional way (Affandi and Nufus 2010) . Therefore, organization of cash waqf should receive more attention to finance various social projects through empowerment in the form of productive financing (Ahmad, dan Thobieb, 2006). Beside optimizing the cash waqf system, it is also necessary to developing cash waqf distribution programs. This paper aims to analyze management of cash waqf in Indonesia and inhibiting factors organization of cash waqf. This research consists of several steps. The first, to observed the potential of cash waqf. The second is, to information through interviews of academics in sharia and members of indonesian waqf board. The last is, to formulate the strategy to develop the cash waqf. This research conducted Analytic Network Process (ANP). The me...

The purpose of this paper is to analyze the role of Islamic banks as providers of Islamic wealth management product in relation with the enhancement of waqf funds.The authors use qualitative research that refers to the meanings, concepts, definitions, characteristics, metaphors, symbols and descriptions of the matter understudy by employs content and descriptive analysis in order to get finding of the study. The data collection is generated from Islamic sources: Qur'an, Sunnah and some Islamic literatures, and other sources such as books, journals, report documents, magazines and articles from internet. These sources will be put in to coding and analyzed to answer the research problem of study. The role of Islamic wealth management is not only focusing on worldly investment helping the clients' need, but also hereafter investment. One of the instruments of wealth distribution that can be used for hereafter investment is waqf that helps the clients' wealth to obtain blessing (barâkah) of Allah. By waqf, Islamic wealth management instrument can accomodate all models of waqf funds from cash waqf, insurance waqf, corporate waqf, etc. There are three options to of putting their wealth in waqf funds, they are: (i) family waqf, (ii) public waqf, and (iii) combination of waqf. All benefits of these waqf can contribute the the development of ummah. This paper is one of the very few conceptual studies concerning the practice of Islamic banking in implementing the product of wealth management for social purposes which is enhancement of waqf funds for the benefit of ummah.