STRATEGIC OPTIMIZATION OF CASH WAQF IN INDONESIA, A PRODUCTION FUNCTION AND GOVERNANCE-BASED APPROACH
Abstract
Cash waqf (waqf al-nuqud) has emerged as a dynamic instrument within the broader framework of Islamic social finance, offering a flexible, inclusive, and potentially high-impact mechanism for sustainable development in Muslim-majority societies. Despite its significant potential—particularly in countries like Indonesia, where the annual estimated cash waqf capacity exceeds IDR 180 trillion—its realization remains suboptimal due to limitations in governance, institutional professionalism, and public trust. This study aims to develop a conceptual model for optimizing cash waqf management in Indonesia by integrating Islamic jurisprudential principles, behavioral economics, and production theory. Utilizing a qualitative, literature-based approach, the research synthesizes theoretical insights with practical models such as Interpretive Structural Modeling (ISM), SWOT analysis, and case studies from Indonesia (Waqf Amerta) and Malaysia (ICWME-I). A simplified production function model—WT=f(P,N)WT = f(P, N)—is proposed, where cash waqf output (WT) is determined by waqf potential (P) and the professionalism of nazhir institutions (N). Findings highlight that strategic optimization of cash waqf requires a multi-level approach involving regulatory reforms, human capital development, institutional transparency, and systematic public engagement. The study advocates for the establishment of professional nazhir institutions modeled after financial industry standards, with active state support in education, certification, and governance. By bridging theoretical and practical dimensions, this paper contributes to the growing literature on Islamic philanthropic finance and offers a strategic framework for enhancing the role of cash waqf as a vehicle for inclusive socio-economic transformation.
Keywords: Cash Waqf; Islamic Social Finance; Nazhir Professionalism; Production Theory; Waqf Optimization; Strategic Modeling; Good Waqf Governance
Full Text:
PDFReferences
Ali, M. (1988). Sistem ekonomi Islam: Zakat dan wakaf. UI Press.
Asmy, M. M., Mohammed, M. O., Duasa, J., & Abdullah, M. A. (2016). Developing cash waqf model as an alternative source of financing for micro enterprises in Malaysia. Journal of Islamic Monetary Economics and Finance, 2(2), 1–15.
Az-Zuhaili, W. (2007). Al-Fiqh al-Islami wa Adillatuhu (Vol. 8). Damaskus: Dar al-Fikr.
Cizakca, M. (2004). Ottoman cash waqfs: An alternative to Western capitalism. FSTC Limited.
Crecelius, D. (2006). Waqf in Egypt in the Ottoman period. In Islamic Philanthropy and Social Justice in Historical Perspective (pp. 123–139). Oxford University Press.
Fathurrohman, M. (2006). Wakaf dalam perspektif hukum Islam. Bandung: Al-Ma’arif.
Hasan, Z., & Siraj, S. A. (2017). Developing a model for Islamic real estate investment via cash waqf. Journal of Islamic Accounting and Business Research, 8(3), 341–360. https://doi.org/10.1108/JIABR-06-2016-0071
Hassan, M. K., Sadeq, A. H. M., & Kayed, R. N. (2018). Islamic entrepreneurship and business ethics: Foundations and practices. Routledge.
Ihsan, H., Ibrahim, S. H. M., & Haji Alias, M. (2017). The efficiency of Islamic institutions: Empirical evidence of cash waqf. International Journal of Islamic and Middle Eastern Finance and Management, 10(4), 491–507. https://doi.org/10.1108/IMEFM-08-2016-0113
Masruki, R., & Shafii, Z. (2013). The development of waqf accounting in enhancing accountability. Middle-East Journal of Scientific Research, 13(1), 1–6.
Mohammed, M. O., Asmy, M. M., & Yusof, N. M. (2014). Cash waqf and Islamic microfinance: Untapped economic opportunities. International Journal of Islamic Finance, 6(1), 1–12.
Muammar, M. A., & Syadid, M. (2020). Model pengembangan dan pemanfaatan wakaf tunai untuk pendidikan tinggi: Studi kasus Wakaf Amerta Airlangga. Jurnal Ekonomi dan Bisnis Islam, 5(2), 101–115.
Nicholson, W. (2002). Microeconomic theory: Basic principles and extensions (8th ed.). South-Western College Publishing.
Qahaf, A. (2000). Al-Muassasat al-Khairiyyah fi al-Islam. Jeddah: IDB.
Qahaf, A. (2005). Al-Iqtisad al-Islami: Nazariyyatuhu wa Falsafatuhu wa al-Muassasat al-Muta’alliqah bihi. Riyadh: Maktabah al-Malik Fahd.
Rahayu, S. S., & Rusydiana, A. S. (2019). How to optimize cash waqf in Indonesia? A SWOT analysis approach. Review of Islamic Social Finance and Entrepreneurship, 3(1), 35–44.
Rusydiana, A. S. (2018). Aplikasi Interpretive Structural Modeling (ISM) untuk strategi pengembangan wakaf tunai di Indonesia. Al-Iqtishad: Journal of Islamic Economics, 10(2), 331–346. https://doi.org/10.15408/aiq.v10i2.6401
Saad, R. A. J., Anuar, M. A., & Mohamad, N. (2016). Cash waqf models for financing in education: A perspective of the Malaysian experience. International Journal of Islamic Thought, 10, 15–20.
Sadono, S. (2016). Pengantar teori mikroekonomi (5th ed.). Rajawali Pers.
Sabiq, S. (1986). Fiqh al-Sunnah (Vol. 3). Beirut: Dar al-Fikr.
Walter, N. (2002). Intermediate microeconomics and its application (10th ed.). Thomson South-Western.
DOI: https://doi.org/10.71312/mrscholar.v1i1.337
Multidisciplinary Research Studies in Social Sciences (MRSCHOLAR) Indexed by:
Lembaga Penerbit: Taksasila Edukasi Insani
Kontak: Tri Ananto
Alamat Resmi Penerbit: Jl. Cireundeu Raya No.1A, RT.002/RW.06, Kelurahan Cireundeu, Kecamatan Ciputat Timur, Kota Tangerang Selatan, Banten 15419.
Copyright © 2025 of Multidisciplinary Research Studies in Social Sciences (e-ISSN: 3090-8922 )
Multidisciplinary Research Studies in Social Sciences © 2025 by Taksasila Edukasi Insani is licensed under Creative Commons Attribution-ShareAlike 4.0 International