The Scheme of

Productive Cash
Waqf in Indonesia
Agricultural Sector
Presented by Farokhah
Muzayinatun Niswah, S.EI., M.Si

ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA

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ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA Lamongan
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ISLAMIC ECONOMICS 2022
Farokhah Muzayinatun
Niswah, S.EI., M.Si
Universitas Muhammadiyah
INTERNATIONAL SUMMER COURSE UMLA Lamongan
 Today's Highlight

01 INTRODUCTION

02 CASH WAQF

03 WAQF IN INDONESIA

04 WAQF IN AGRICULTURAL
SECTOR

05 DISCUSSION

ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA

 WHAT IS WAQF?
‫ِإَذ ا َم اَت ابُن آدم اْنَق َط َع َع َم ُلُه ِإاَّل ِم ْن‬
، ‫ أو ِع ْلٍم ُيْنَت َف ُع ِبِه‬، ‫ َص َد َق ٍة َجاِرَيٍة‬: ‫َثاَل ٍث‬
‫ َرَو اُه ُم ْس ِلٌم‬. ‫َأْو َو َلٍد َص اِلٍح َيْدُع و َلُه‬
Literally, waqf represents Arabic “waqfa”
which means to hold, confinement, or
prohibition, to stop and stand still, to
"If a person dies, then his obstruct.
deeds are cut off, except for
three things (namely) alms Law No. 41 of 2004 about Waqf
Jariyah, beneficial knowledge,
“Waqf is a legal act of waqif/donor to
and the prayer of a pious child"
separate and/or surrender part of his
property to be used forever or for a certain
(Hadith narrated by Muslim)
period of time in accordance with his
interests for the purposes of worship and/or
public welfare according to sharia.”

ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA

 The Amazing of Waqf
The human life cycle from birth to death can be
supported by waqf

School
Hospital [education]
[health] Mosque

House
Business
START Graveyard

ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA

 WAQF PURPOSE

poverty
alleviation

community distribution
welfare of wealth

economic
Waqf is a tool Apart from being a form of servitude
empower-
to achieve: to Allah, waqf also contains social ment
and economic elements.

ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA

 CHARACTERISTIC OF WAQF

irrevocable perpetual inalienable

In permanent dedication, the waqf asset cannot be revoked by the waqif at any time.
Naturally, waqf assets should be perpetual. It will bring permanent benefits for both waqif
and mauquf ‘alaih and waqif obtains continuous rewards from Allah SWT.
The inalienability of waqf asset means the asset cannot be alienated by anyone since the
asset belongs to Allah SWT. No one cannot sell, mortgage, legate or give away to anybody.

ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA

 TYPE OF WAQF

Eternal waqf based on the

period of time
Temporary

waqf based on the Immovable

type of object ex: land & building

Movable
ex: money (shares, bonds,
etc.), intellectual property
rights (copyrights, trademark
rights, patents, etc.)

ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA

 waqif is a person who gives his waqif
wealth to waqf
mauquf 'alaih is the person
that receives the benefit of
waqf, (beneficiaries)
nazir is a person who is
entrusted by the waqif to Pillar mauquf
maintain and manage the waqf,
waqf object of Waqf 'alaih
the price of the waqf object
waqf pledge is the
determination of the purpose
of the waqf, and the length of
the waqf period.
pledge

ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA

 ABOUT CASH WAQF

What is Cash Waqf? Cash Waqf = Most popular, easy, cheap, flexible

can be done anytime and

a waqf made by a person,
anywhere
group of people, and
People participate in cash waqf
institutions or legal entities
based on their abilities.
in the form of money
more flexible than land immovable
(Ministry of Religion, 2013).
waqf (land/building) & zakat

ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA

 CASH WAQF IN INDONESIA

The Practice of Cash

Waqf in Indonesia

1. Cash waqf through nazir (institution/individual) for

certain waqf projects/purposes (no minimum
amount)
The potential for Indonesian
2. Cash waqf through Sharia Financial Institution for cash waqf reached around Rp.
Cash Waqf Recipients (LKS PWU) with the minimum 180 trillion per year
amount of IDR1 million. In 2022, there are 29 financial (Indonesian Waqf Board, 2021).
institutions receiving cash waqf.
Cash Waqf Potential

ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA

 PRODUCTIVE WAQF

In terms of utilization: waqf al-mubasyar (direct waqf)

benefits directly transferred to the beneficiaries,
ex: mosques, hospitals, and schools
waqf al-Istitsmary (productive waqf)
productively managed first
ex: agricultural sector, housing, energy

INDONESIAN WAQF
WAQF REGULATION
BOARD (BWI)

Law No. 41 of 2004 – About Waqf an independent institution that

manages, and supervises waqf in
Other supporting waqf collaboration with the Ministry of
regulation: Religion in waqf administration in
https://www.bwi.go.id/regulasi/ Indonesia.

ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA

 WAQF IN AGRICULTURAL SECTOR

ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA

 THE POTENTIAL OF AGRICULTURAL SECTOR

Agriculture is one of the production/

strategic life support sectors. food security
The role of agriculture is as
the center of development
for the nation's economy.

multifunctional
agriculture

improving the
preserving the welfare of
environment farmers/
alleviating
poverty

ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA

 MAIN PROBLEM IN AGRICULTURAL SECTOR

Agriculture is the most Indonesian

primary sector in farmers are poor and
producing food have difficulty raising
capital

BUT
BUT

farmers need a large

enough capital to farm, farmers have limited
which is not access to financial
commensurate with the institutions
selling price of their
crops.

ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA

 MICRO-BUSINESS CAPITAL WAQF

launched by Global Wakaf

channeling several waqf funds
for micro-business actors and
farmers with the qhardul hasan
(benevolent loan) scheme free
micro-business actors and
farmers from debt bondage
and usury.
Practice:
The business capital of Rp 30 million was
handed over to 60 farmers in Siser Village,
Laren, Lamongan which will be used to buy expected to help micro-
fertilizers (Global Wakaf, 2020). enterprises and farmers to
be more empowered

ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA

 The Scheme of Micro-business
Capital Waqf for Farmers

Source: Global Wakaf, modified by Niswah, 2021

ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA

 MICRO-BUSINESS CAPITAL WAQF

Waqif provides money for the micro-enterprise capital waqf program.

Then nazir (Global Wakaf) manages waqf assets into capital costs for waqf
beneficiaries with the qardhul hasan principle.
Then a contract or agreement is made along with the transfer of funds to
farmers as beneficiaries.
There is a companion in this program responsible for funding capital and
providing business assistance so that the farmers' businesses can run,
grow, and be sustainable.
After the business is running and making a profit, the farmer returns the
principal of the waqf fund according to the contract agreed at the
beginning, without interest and fines.

ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA

 OTHER WAQF SCHEMES
IN AGRICULTURAL SECTOR

Waqf with
Permaculture Muzara'ah and
Waqf Ijarah Principle

Waqf Food Barn Waqf Livestock

Barn

More waqf schemes in Agricultural Sector

https://www.bwa.id/project/all/pagin
g/1?cat=Wakaf+Produktif

ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA

 DISCUSSION TIME.

ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA

 Reach me out

fmniswah@gmail.com

farokhah

+62 85706333894

Islamic Economics Department,

Universitas Muhammadiyah Lamongan

ISLAMIC ECONOMICS 2022 INTERNATIONAL SUMMER COURSE UMLA