Efficiency or Trust? Reforming Waqf in Indonesia Through a Tale of Two Waqf Models (Singapore and South Africa)

Abstract

Abstract: Effective waqf governance is essential for unlocking the full socioeconomic potential of waqf institutions. This paper compares two different
governance models: the state-led, top-down approach in Singapore and the
community-based, bottom-up model in South Africa. By analyzing the strengths
and weaknesses of each, the study aims to draw lessons for Indonesia, a country
dealing with systemic governance issues. The research employs a qualitative,
comparative methodology, utilizing thematic analysis facilitated by NVivo
software to systematically code and synthesize existing findings from the three
nations. The analysis reveals that Singapore's centralized model offers significant
efficiency and robust oversight. Still, it also introduces regulatory rigidity that can
hinder smaller institutions and raise trust issues within the community.
Conversely, South Africa’s independent model has successfully created a
comprehensive governance system and promoted public trust; however, it faces
logistical challenges in coordinating volunteers and managing leadership
succession. The findings on Indonesia point out critical weaknesses, including
poorly developed and uncoordinated regulations, a widespread lack of
accountability among waqf managers (nazhir), and low professional skills.The
paper concludes that no single model is universally superior. The key implication
for Indonesia is that reform should not focus on wholesale adoption of an external
model. Instead, the central recommendation is the implementation of a robust
performance measurement framework. Such a framework can serve as a
foundational tool to build a hybrid model, enabling data-driven, top-down
regulation while empowering bottom-up institutional improvement, thereby
addressing the nation's unique challenges.
Keywords: Waqf Governance, Performance Measurement, Accountability, TopDown Governance, Bottom-Up Governance