Al-Awqaf: Jurnal Wakaf dan Ekonomi Islam

Unveiling Strategy of Developing Bank Waqf in Indonesia

2025-01-21T21:26:02+07:00

This study aims to present an alternative to the current banking system, namely through the optimization of the cash waqf concept and its management within a waqf bank framework. This study uses the Partial Least Square Structural Equation Model (PLS SEM) with several assumptions related to the structure and operational system of the bank used, using a survey of 114 respondents from banking practitioners, regulators and waqf practitioners. In this study, variables used include capital contribution, credit security, ownership structure, margin, legal status and transaction agreements on the waqf bank structure. Empirical findings are based on the views of waqf administrators. The results of the analysis conclude that capital contribution and transaction agreement models affect the structure of waqf banks in Indonesia. Meanwhile, credit security, form of ownership, margin and legal status do not significantly affect the structure of waqf banks in Indonesia. This study is expected to help the development of waqf banks in Indonesia. This study can contribute to the effectiveness of institutions for the poor and society. These implications are not limited to a particular country. Charitable organizations and the poor in every society will benefit from this study if the idea oftotal social banking is implemented. This study is a pioneer study in empirically addressing the structure and operation of waqf banks in Indonesia.

The Role of Waqf Bank in Strengthening the Islamic Economy

2025-01-21T21:25:46+07:00

Abstract: This paper explores the concept and potential role of a Waqf Bank as a key institution in supporting the Islamic economy. By leveraging the traditional Islamic endowment system (waqf), a Waqf Bank could serve as a sustainable financial mechanism aimed at empowering Small and Medium Enterprises (SMEs), alleviating poverty, and promoting socio-economic development in Muslim-majority countries. This study employs a conceptual approach, drawing from both classical and contemporary literature on waqf and Islamic banking. It proposes a model where Waqf Bank operations align with Sharia principles while addressing modern economic challenges, such as financial inclusion and social welfare improvement. The findings suggest that a well-structured Waqf Bank has the potential to fill existing gaps in Islamic finance, providing a strategic means for wealth redistribution and long-term economic sustainability. The paper also highlights potential challenges in implementing such a bank, including legal, regulatory, and operational concerns, and offers recommendations for future research on optimizing waqf-based financial institutions.

Peran dan Potensi Wakaf Uang dalam Pembentukan Bank Wakaf untuk Pengentasan Kemiskinan Berbasis Pesantren di Pondok Pesantren Al Amanah Al Gontory

2025-01-21T21:25:29+07:00

The research conducted focuses on discussing the role and potential of cash waqf collected by sharia cooperatives, then after the collected cash waqf funds are handed over to the waqf bank for management in Islamic boarding school-based poverty alleviation efforts. There are two methods used in this research, First is a library study (Library Research) towards books and reading materials related to the discussion. Second is a field study using natural direct observation to obtain more valid data, including: observation, interviews, and interaction with participants who represent the research object. The results of research on the role and potential of cash waqf in the formation of waqf banks for Islamic boarding school-based poverty alleviation show that sharia cooperatives that are present in Islamic boarding school-based educational institutions can be the spearhead in collecting cash waqf because to carry out cash waqf you don't need to wait to be rich or established, anyone it is possible to carry out cash waqf with a small nominal amount such as five thousand rupiah, so that with the collected waqf capital the money that has been collected can be used to establish a waqf bank whose management must be in accordance with the purpose of its formation, such as making investments by providing convenience in terms of financing to the community. around Islamic boarding schools with small profit sharing so that it does not burden the customers, the waqf bank apart from providing financing has another very important role in supervising customers, namely by empowering, spiritual and physical development with religious knowledge and sharia-based family financial planning and providing business assistance so that the objectives of the financing can be achieved in accordance with the plans that have been prepared

Keywords: waqf banks, cash waqf, empowerment, financing, poverty, sharia cooperatives.

Regulatory Factors Creating Waqf Bank the Third Sector Organizations

2025-01-21T21:25:13+07:00

The development of waqf in Muslim countries has grown positively, contributing to socio-economics. Waqf, as one of the instruments of innovation, increases awareness of its value and widespread use. Banking functions as a profit institution centred on the financial sector by collecting and distributing funds to the public for the benefit of national development. The utilisation of the Banking and Waqf sectors is literally the opposite, but has great innovation for the long-term public interest. This phenomenon has given rise to civil organisations as third-sector organisations concerned with integrating the principles and benefits of the banking and waqf sectors. Unfortunately, developing countries in Indonesia, with a Muslim majority population, have high levels of generosity and religiosity, but literacy and inclusion of waqf are still low. The purpose of the study is to determine the regulatory factors that support the creation of waqf banks as third-sector organisations in Indonesia. The study uses a qualitative method with a systematic literature review. Data collection uses secondary data from international journals indexed by Scopus and SINTA published between 2011 and 2023 with the keywords "waqf bank regulation". Data analysis uses a systematic literature review (SLR). The study found that the regulation to create a waqf bank as a third sector organisation in Indonesia requires strengthening of waqf bank education, total government support, large contributions from waqf institutions of third sector organisations, the fundamental role of Islamic banking in waqf banks and services that extend without limits to waqf banks. The study implies that the better the regulation to create a waqf bank in Indonesia, the better the role of third-sector organisations in supporting regulation and education to the public.

Revolutionizing Islamic Finance: Unleashing the Power of Waqf Banks for Socio-Economic Transformation

2025-01-21T21:24:57+07:00

This study provides a comprehensive review of waqf banks, an innovative financial institution in Islamic finance. Through a systematic analysis of 16 Scopus-indexed articles, we explore the evolution, potential, and challenges of waqf banks in addressing socio-economic issues in Muslim-majority countries, with a focus on Indonesia. Our findings reveal that waqf banks, which uniquely combine charitable endowments with microfinance principles, offer a promising solution for poverty alleviation and economic development. These institutions demonstrate particular effectiveness in providing financial services to underserved communities, supporting micro, small, and medium enterprises (MSMEs), and potentially revolutionizing education financing. The review traces the research progression from theoretical frameworks to empirical impact assessments, highlighting the growing recognition of waqf banks' potential. We identify various operational models, each tailored to specific socio-economic needs, ranging from integrated Islamic banking approaches to specialized micro-waqf institutions. Despite their promise, waqf banks face significant challenges, including regulatory hurdles, limited public awareness, and the need for enhanced operational efficiency. Our analysis points to several promising directions for future research and development. These include the integration of financial technology to expand reach and efficiency, exploration of cross-border waqf bank networks, development of hybrid models combining waqf principles with other financial instruments, and the crucial need for standardized impact assessment frameworks. This review contributes to the growing body of literature on Islamic social finance, offering valuable insights for researchers, policymakers, and practitioners in developing effective waqf bank models to address persistent development challenges.