Cash Waqf Investment Management in Indonesia: Study of Literature

Muhammadiyah is a non-governmental organization as a legal entity in Indonesia. In 2010 the Central Board of Muhammadiyah recorded its waqf asset as much as 20,945,504 m² of land in the institutions of Muhammadiyah throughout Indonesia, which earmarked for education from preschool up to high school, higher education, hospitals, orphanages, and mosques. The amount mentioned above has already had legal documents with the name of Muhammadiyah. It should be assumed that there are a lot of assets that the documents reached not the status of rights for waqf of Muhammadiyah with various causes and reasons. Some of them because of the status process are still in progress. There are assets owned by Muhammadiyah since a long time and used for social activities of Muhammadiyah, but the status of some is still not settled. This is the problem to be discussed here. This study takes the experience of the District Board of Muhammadiyah Jember (PDM Jember): how they manage their assets, the background of the problems in the management, issues around these assets, and the steps taken to resolve these problems. Such the problems of PDM Jember are not only faced by Muhammadiyah, but also by other social institutions, and also in other areas in Indonesia, with the different characteristic either simpler or more complicated. The result of this study is expected to be input and contribution to the Islamic social institutions and to encourage the managers to improve the seriousness in managing the Islamic assets. Keywords: management, waqf, Muhammadiyah, Islamic institution

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.

This paper discusses the method of waqf investment by Dompet Dhuafa Republika, Indonesia. The study analyzes the information gained from the interview sessions and the reports issued relating to the investment methods applied by Dompet Dhuafa Republika, Indonesia. The study revealed that waqf investment in Dompet Dhuafa Republika focuses on the development of the waqf assets used in helping the development of the socio-economy of the community. At Dompet Dhuafa Republika, the waqf assets are invested in the banking institution, Baitul Mal wat Tamwil (BMT) and capital for the needy who are involved in Small and Medium Enterprises based on mudarabah and musyarakah contracts.

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.

Jurnal Mahasiswa Fakultas Hukum, 2013

The emergence of a new discourse in exploring the potential of people who can be utilized to build communities solidarity through cash waqf concept. Cash waqf practice is relatively new in Indonesia. This type represents waqf object other than land and building waqfs that are immovable. It strated with the introduction of waqf cash waqf certificate (cash waqf certificate) as well as the establishment of the Social Investment Bank Limited (SIBL)body, which function as an agency that raises funds from the wealthy people through cash waqf certificate. This study has the objective to be achieved at the end of this research, which is to describe and analyze the implementation of Article 43 paragraph (2) of Act 41 of 2004 in the management and development of waqf properties conducted productivally, to identify, describe, and analyze the distribution system of cash waqf funds received by the Baitul Maal Hidayatullah Malang providing benefits to the community, to identify, describe, and analyze the enabling and inhibiting factors experienced by Baitul Maal Hidayatullah Malang in receiving and managing cash waqf. This research is a juridical-empirical study on barriers for the implementation of Article 43 Paragraph (2) of Act 41 of 2004 on Waqf in the management and implementation of cash waqf property in a productive manner. The research approach used in this study is the juridical-sociological approach. It examines the problem in accordance with facts gathered fromthe field that could be linked to the prevailing legal norms, and the legal theories that exist. In effort to raise funds from the public in form of cash waqf, BMH Malang who directly or indirectly act as nadzir waqf, has taken several steps in the approach to potential benefactors in cash waqf program, through a religious approach and the social approach. Distribution of cash waqf funds that have been collected by BMH Malang put into a special fund group, because BMH realize that integrity of these waqf assets must be maintained. In promoting these cash waqf program, BMH Malang realizes that there are some things that support as well as hinder BMH Malang measures.

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 ...

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...

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-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.

UMRAN - International Journal of Islamic and Civilizational Studies, 2020

Productive waqf, which are one of the instruments of economic development for the people in Indonesia, have not yet materialized. Even though the legislation regarding waqf (Islamic endowment) has been ratified and enforced by the Indonesian Government, especially Law No. 1 of 2004 concerning Endowments. The main cause is assumed to lie in the end of waqf that has not been effective. Therefore, this study is focused on talking about Nazir (appointed administrator) under the position in managing productive waqf. The qualitative data used is sourced from books and statutory regulations on waqf in Indonesia, then analyzed by the opinions ulama especially those related to Nazir waqf, whether individuals, organizations or legal entities. Based on the studies conducted, the development of waqf is still a lot of obstacles or obstacles, such as the community’s understanding of waqf is still weak, public trust in Nazir is still not lacking, and Nazir itself is still a lot of professionals. T...