Optimizing Cash Waqf for Productive Ventures: A Comparative Juridical Study of Indonesia and Malaysia

Authors

  • Istianah Zainal Asyiqin Universitas Muhammadiyah Yogyakarta, Yogyakarta, Indonesia.

DOI:

https://doi.org/10.38035/gijlss.v1i4.1074

Keywords:

Cash Waqf, Comparative, Juridical Studies, Management, Productive Business

Abstract

This research examines the regulation and governance of cash waqf for productive ventures in Indonesia and Malaysia. It focuses on how both countries develop legal and institutional frameworks to optimize cash waqf as an instrument for economic empowerment and social welfare. This study uses a normative juridical method with statutory, conceptual, and comparative approaches. The data were obtained through library research by analyzing laws, regulations, journal articles, books, and other relevant legal materials related to cash waqf and waqf governance. The findings show that Indonesia regulates waqf through a national legal framework under Law Number 41 of 2004 on Waqf, with the Indonesian Waqf Board playing an important supervisory role. Malaysia applies a decentralized model, where State Islamic Religious Councils act as sole trustees for waqf assets in their respective states. Although both countries recognize the potential of cash waqf for productive ventures, they still face challenges related to public literacy, institutional capacity, transparency, and effective fund management. This study argues that stronger regulation, accountable governance, and wider public participation are needed to optimize cash waqf for sustainable economic development and community welfare.

References

Ahmad, A. U. F., & Mobin, M. A. (2015). Promoting maqashid al-Shari’ah and achieving sustainable economic development: The potential of the proposed two-tier mudarabah business model on cash waqf. Media Syari’ah, 17(1), 1–36.

Ahyani, H., Putra, H. M., Slamet, M., & Mutmainah, N. (2022). Standardization of Companies and The Islamic Business Environment in Indonesia. Jurnal Ilmiah Ekonomi Islam, 8(1), 10. https://doi.org/10.29040/jiei.v8i1.3795

Akbar, M. F., Mareto, I., Adhiem, A. F. A., Firdaus, A. D., & Farid, A. M. Binti M. (2023). The Financial Balance Policy Between Central and Local Government: Toward More Just Financial Allocation. Yuridika, 38(2), 415–430. https://doi.org/10.20473/ydk.v38i2.42904

Amri, U. (2022). Implementasi Wakaf Uang Di Indonesia. Jurnal Manajemen, Akuntansi, Ekonomi, 1(2), 11–22. https://doi.org/10.59066/jmae.v1i2.108

Ashsiddiqqy, M. R., Monoarfa, H., & Cakhyaneu, A. (2020). Implementation of Aqad Musyarakah Mutanaqisah (MMQ) Take Over Financing on KPR Products in Sharia Banks. Review of Islamic Economics and Finance, 1(1), 32–42. https://doi.org/10.17509/rief.v1i1.23745

Asutay, M., & Yilmaz, I. (2021). Constituting an Islamic Social Welfare Function: An Exploration Through Islamic Moral Economy. International Journal of Islamic and Middle Eastern Finance and Management, 14(3), 524–540. https://doi.org/10.1108/IMEFM-03-2019-0130

Bustami, Laksamana, R., & Roviqoh, Z. (2020). Waqf fundraising through money in the industrial revolution 4.0 era: A case study on Baitulmaal Munzalan Indonesia. Ijtihad: Jurnal Wacana Hukum Islam Dan Kemanusiaan, 20(1), 23–39. https://doi.org/10.18326/ijtihad.v20i1.23-39

Hartanto, S., & Sup, D. F. A. (2021). Konsep Wakaf Uang dalam Perspektif Hukum di Indonesia. Journal of Indonesian Comparative of Syari’ah Law, 4(1 SE-Hukum Islam dan Hukum Positif), 39–62. https://doi.org/10.21111/jicl.v4i1.5778

Ismail, Husna, A., & Amini, S. (2023). Praktik dan Pemikiran Wakaf di Indonesia: Komparasi Pemikiran Mustafa Edwin Nasution dan Hendri Tanjung. JGIES : Journal of Global Islamic Economic Studies, 1(1), 37–47.

Iswanaji, C. (2018). Challenges Inhibiting Islamic Banking Growth in Indonesia Using the Analytical Hierarchy Process. Journal of Islamic Economics Lariba, 4(2), 97–107. https://doi.org/10.20885/jielariba.vol4.iss2.art4

Jefik Zulfikar Hafizd, A. K. (2022). Literasi Wakaf Tunai Untuk Memajukan Ekonomi Umat Islam Literature of Cash Waqf To Promote the Economy of Islamic. Abdimas Galuh, 4(1), 152–161. https://doi.org/10.26623/julr.v3i222

Kamal, M. (2021). Pengelolaan Wakaf Uang di Indonesia. Istinbath: Jurnal Penelitian Hukum Islam, 16(2), 135–154. https://doi.org/10.36667/istinbath.v16i2.133

Khaliq, A., Hussin, N., & Haji Mohammad, M. T. S. (2019). WAQF UNIT TRUST AS AN ALTERNATE MODEL TO REALIZE WAQF SUSTAINABILITY. European Journal of Islamic Finance, 1(13 SE-). https://doi.org/10.13135/2421-2172/3623

Lubis, M. I. K., Mustamam, M., & Akhyar, A. (2022). ANALISIS YURIDIS GERAKAN NASIONAL WAKAF UANG (GNWU) DALAM PERSPEKTIF UNDANG-UNDANG NOMOR 41 TAHUN 2004 TENTANG WAKAF. Jurnal Ilmiah METADATA, 4(1 SE-), 139–165. https://doi.org/10.47652/metadata.v4i1.127

Masruki, R., Hanefah, M. M., & Dhar, B. K. (2020). Shariah Governance Practices of Malaysian Islamic Banks In The Light Of Shariah Compliance. Asian Journal of Accounting and Governance, 13(1), 91–97. https://doi.org/10.17576/AJAG-2020-13-08

Muslimin, J. M., Qamar, B., & Sen, H. (2022). Waqf, Sharia Venture Capital, And Institutional Problems: Socio-Legal Cases In Indonesia. Akademika : Jurnal Pemikiran Islam, 27(1), 15–30. https://doi.org/10.32332/akademika.v27i1.4524

Nugraha, A. L., Susilo, A., Huda, M., Athoillah, M. A., & Rochman, C. (2022). Waqf Literacy: The Dynamics of Waqf in Indonesia. Journal of Islamic Economics and Finance Studies, 3(2), 107. https://doi.org/10.47700/jiefes.v3i2.5082

Nurjamil, & Siti Nurhayati. (2021). Pengelolaan Wakaf Uang Melalui Aplikasi Fintech Pada Koperasi Syariah Di Kota Bandung. Coopetition : Jurnal Ilmiah Manajemen , 12(2 SE-Articles), 205–212. https://doi.org/10.32670/coopetition.v12i2.435

Pelaburan, K. (2021). Conceptualizing Financial Risk and Investment Diversification towards the Efficiency of Waqf Institutions in Malaysia. Islamiyyat, 43(2), 53–68. https://doi.org/10.17576/islamiyyat-2021-4302-05

Produktif, W. (2019). Wakaf produktif di malaysia. 8(1), 43–64.

Sara, I. S. (2023). Potential Blockchain Applications in Waqf for Sustainability: A Middle East and Asia Perspective. Islamiyyat, 45(2), 47–64. https://doi.org/10.17576/islamiyyat-2023-4502-04

Setia, A. (2018). Reintegrating the Legal into the Social: Reviving Islamic Transactional Law in the Context of the Civil Economy, with Special Reference to Waqf. Journal Law and Development Review, 11(1), 209–250. https://doi.org/doi:10.1515/ldr-2017-0053

Shahimi, S., Mohd Marzuki, M. U., & Embong, Z. (2013). Potential of cash Waqf for poverty alleviation in Malaysia: A system dynamics approach. Jurnal Ekonomi Malaysia, 47(2), 149–163.

Shulthoni, M., & Saad, N. M. (2018). Waqf fundraising management: A conceptual comparison between traditional and modern methods in the waqf institutions. Indonesian Journal of Islam and Muslim Societies, 8(1), 57–86. https://doi.org/10.18326/ijims.v8i1.57-86

Sulistiani, S. L., Fawzi, R., & Nurrachmi, I. (2023). Waqf Crowdfunding Model in Post-Pandemic Economic Improvement According to Islamic Sharia and National Law. Amwaluna: Jurnal Ekonomi Dan Keuangan Syariah, 7(1), 73–81. https://doi.org/10.29313/amwaluna.v7i1.10130

Sulistyani, D., Asikin, N., Soegianto, S., & Sadono, B. (2020). Pelaksanaan Dan Pengembangan Wakaf Uang Di Indonesia. Jurnal Usm Law Review, 3(2), 328. https://doi.org/10.26623/julr.v3i2.2874

Sulistyowati, S. (2019). Designing Integrated Zakat-Waqf Models For Disaster Management. Journal of Islamic Monetary Economics and Finance, 4(2 SE-Articles). https://doi.org/10.21098/jimf.v4i2.1011

Wahib, M. (2019). Wakaf Tunai Dalam Perspektif Hukum Islam. Syar’ie: Jurnal Pemikiran Ekonomi Islam, 1(0 SE-Articles). https://doi.org/10.1007/978-981-97-141

Wardy Putra, T., Saputra, J., Taufiq Possumah, B., & Yofaldy Ichsan Hasyim, M. (2023). Productive Waqf Development Model: A Comparative Study between Indonesia and Malaysia. Tazkia Islamic Finance and Business Review, 17(1), 13–35. https://doi.org/10.30993/tifbr.v17i1.314

Zehra, N., Umair, H., Shabbir, M. S., & Mallouli, A. EL. (2022). The Role of Islamic Banking Development and its impact on Financial Stability: Evidence from Morocco’s Financial Institutions. Pakistan Journal of Humanities and Social Sciences, 10(1), 354–365. https://doi.org/10.52131/pjhss.2022.1001.0203

Downloads

Published

2023-12-28

How to Cite

Zainal Asyiqin, I. (2023). Optimizing Cash Waqf for Productive Ventures: A Comparative Juridical Study of Indonesia and Malaysia. Greenation International Journal of Law and Social Sciences, 1(4), 201–212. https://doi.org/10.38035/gijlss.v1i4.1074

Issue

Vol. 1 No. 4 (2023): (GIJLSS) Greenation International Journal of Law and Social Sciences (December 2023)

Section

Articles

License

Copyright (c) 2023 Istianah Zainal Asyiqin

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright :

Authors who publish their manuscripts in this journal agree to the following conditions:

  1. Copyright in each article belongs to the author.
  2. The author acknowledges that the Greenation International Journal of Law and Social Sciences (GIJLSS) has the right to be the first to publish under a Creative Commons Attribution 4.0 International license (Attribution 4.0 International CC BY 4.0).
  3. Authors can submit articles separately, arrange the non-exclusive distribution of manuscripts that have been published in this journal to other versions (for example, sent to the author's institutional repository, publication in a book, etc.), by acknowledging that the manuscript has been published for the first time at GIJLSS.