INNOVATIVE WAQF MODELS FOR SUSTAINABLE ECONOMIC DEVELOPMENT: ASSESSING LEGAL FRAMEWORKS AND PRACTICES IN INDONESIA CONTEXT
Main Article Content
Riyan Al Fajri
This study addresses the significant potential of waqf assets in Indonesia, which are currently underutilized due to a primary focus on charitable and religious purposes, thereby limiting their contribution to sustainable economic development. The aim of the study is to explore how waqf can contribute to economic growth, identify new models for using waqf, and suggest ways to overcome the challenges in waqf development. Using a legal research approach, the study analyzes legal frameworks, reviews existing literature, and compares waqf practices, gathering data from legal sources, academic articles, and policy reports. The findings show that while waqf could significantly boost Indonesia's economy, issues like weak legal support, lack of transparency, and limited skills among waqf managers hold back progress. Innovative models, such as cash waqf linked sukuk, blended finance waqf and crowdfunding waqf, are proposed as effective solutions. In conclusion, to fully realize waqf's potential for sustainable economic growth, comprehensive reforms are needed, including improving the skills of waqf managers, increasing transparency, and updating legal frameworks. By adopting new financing models and encouraging public participation, waqf can become a vital part of inclusive economic development in Indonesia.
Abdullahi, S. I. (2022). Branding wāqf for sustainable development: a marketing approach. International Journal of Economics, Management and Accounting, 30(1), 55–74. https://www.proquest.com/docview/2696131415/fulltextPDF/FD7AFBCA4C2B48B2PQ/33?accountid=25704&sourcetype=Scholarly%20Journals
Aldeen, K. N., Ratih, I. S., & Pertiwi, R. S. (2022). Cash waqf from the millennials’ perspective: a case of Indonesia. ISRA International Journal of Islamic Finance, 14(1), 20–37. https://doi.org/10.1108/IJIF-10-2020-0223
Amrullah, K., Jamal, M., Khakim, U., Cahyo, E. N., & Zahro’, K. (2022). The concept of waqf from worldview theory: the study of sharia-philosophy. ULUL ALBAB Jurnal Studi Islam, 23(1), 22–41. https://doi.org/10.18860/ua.v23i1.15694
Bawono, A., Saputra, Y., & Indrawan, I. W. (2023). Intention to use crowdfunding-waqf model (cwm) among muslim gen-z in Indonesia: role of religious orientation using extended UTAUT2. Journal of Economic Cooperation & Development, 44(1), 1–19. https://www.proquest.com/docview/2839513336/fulltextPDF/FD7AFBCA4C2B48B2PQ/190?accountid=25704&sourcetype=Scholarly%20Journals
Caniago, M. A. I., & Satibi, I. (2024). Prospects and problems of waqf in Indonesia. Al- Masharif : Jurnal Ilmu Ekonomi Dan Keislaman, 11(1), 1–8. https://jurnal.uinsyahada.ac.id/index.php/Al-masharif/article/download/10884/5713
Dembele, A., & Bulut, M. (2021). The role of Islamic social finance in achieving the objectives of sustainable development goals. Turkish Journal of Computer and Mathematics Education, 12(14), 3962–3976. https://www.proquest.com/docview/2623925475/fulltextPDF/FD7AFBCA4C2B48B2PQ/3?accountid=25704&sourcetype=Scholarly%20Journals
Firmannudin, Y., Lubis, D., & Ali, K. M. (2024). Development of waqf forest in Indonesia: Brand equity analysis of Bogor waqf forest purchase intention. 10(1), 103–114. https://doi.org/10.20885/JEKI
Hasibuan, W. S., & Lubis, I. (2024). Halal value chain integration in food court establishment through Cash Waqf Linked Sukuk: evidence from Indonesia. Cogent Business and Management, 11(1), 1–16. https://doi.org/10.1080/23311975.2024.2385075
Hassan, M. K., Irsyan, N. M., & Muneeza, A. (2023). The potential of waqf-blended finance using crowdfunding in Indonesia. International Journal of Islamic Thought, 24(1), 72–99. https://doi.org/10.24035/ijit.24.2023.271
Hermala, I., Sunitiyoso, Y., & Sudrajad, O. Y. (2025). Green financing using Islamic finance instruments in Indonesia: a bibliometrics and literature review. International Journal of Energy Economics and Policy, 15(1), 239–248. https://doi.org/10.32479/ijeep.17208
Ibrahim, A. A. (2022). Sustainability and sustainable development: an investigation on the role of Islamic finance and other determinants in the OIC member countries [University of Salford]. https://www.proquest.com/docview/2796791136/fulltextPDF/FD7AFBCA4C2B48B2PQ/155?accountid=25704&sourcetype=Dissertations%20&%20Theses
Ibrahim, A., Fitria, A., & Fithriady, F. (2024). Exploring the potential of incorporating waqf into sharia insurance products in Indonesia. Interdisciplinary Journal of Management Studies, 17(3), 749–765. https://doi.org/10.22059/ijms.2023.362110.676029
Medias, F., Rahman, A. A., Susamto, A. A., & Pambuko, Z. B. (2021). A systematic literature review on the socio-economic roles of waqf: evidence from organization of the Islamic cooperation (OIC) countries. Journal of Islamic Accounting and Business Research, 13(1), 177–193. https://doi.org/10.1108/JIABR-01-2021-0028
Priyadi, U., Achiria, S., Imron, M. A., & Zandi, G. R. (2023). Waqf management and accountability: Waqf land financing models for economic wellbeing. Asian Economic and Financial Review, 13(1), 74–84. https://doi.org/10.55493/5002.v13i1.4696
Raimi, L., Abdur-Rauf, I. A., & Ashafa, S. A. (2024). Does Islamic sustainable finance support sustainable development goals to avert financial risk in the management of Islamic finance products? A critical literature review. Journal of Risk and Financial Management, 17(6). https://doi.org/10.3390/jrfm17060236
Sarabdeen, M., Ismail, S., Mohd Hidzir, P. A., Alofaysan, H., & Rahmat, S. (2025). The role of social financing in promoting social equity and shared value: a cross-sectional study of small and medium enterprises in Malaysia and Saudi Arabia. Sustainability (Switzerland), 17(5). https://doi.org/10.3390/su17051889
Shovkhalov, S. (2024). Islamic economic principles and their contributions to ecological sustainability and green economy development. E3S Web of Conferences, 541. https://doi.org/10.1051/e3sconf/202454104009
Supriatna, E., Syarif, D., Afrilia, A., Sundari, A., & Setia, P. (2024). A waqf empowerment model based on benefit analysis. Journal of Islamic Thought and Civilization, 14(1), 303–319. https://doi.org/10.32350/jitc.141.18
Suriani, S., Masbar, R., Agustina, M., & Khairul, A. D. (2024). Do global green sukuk affect on climate change? Evidence in issuing countries. International Journal of Energy Economics and Policy, 14(1), 98–107. https://doi.org/10.32479/ijeep.14987
Uluyol, B., Secinaro, S., Calandra, D., & Lanzalonga, F. (2021). Mapping waqf research: a thirty-year bibliometric analysis. Journal of Islamic Accounting and Business Research, 12(5), 748–767. https://doi.org/10.1108/JIABR-01-2021-0031
