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Determining the characteristics of waqf-based Islamic financial institution and proposing appropriate models for Indonesia

Ascarya Ascarya (University of Darussalam Gontor, Ponorogo, Indonesia and Institut Agama Islam Tazkia, Bogor, Indonesia)
Jardine A. Husman (Department of Islamic Economics and Finance, Bank Indonesia, Indonesia)
Hendri Tanjung (Ibn Khaldun University, Bogor, Indonesia)

International Journal of Ethics and Systems

ISSN: 2514-9369

Article publication date: 26 April 2022

Issue publication date: 5 January 2023

212

Abstract

Purpose

This study aims to determine the characteristics of waqf-based Islamic financial institution (IFI) and subsequently propose some waqf-based IFIs.

Design/methodology/approach

This study uses the Delphi method, combined with the Likert scale, to determine and validate the agreed characteristics of waqf-based IFI models. Subsequently, based on the agreed characteristics, the authors propose waqf-based IFI models.

Findings

The results show that there are 28 important characteristics of waqf-based IFI, which respondents agree on 24 characteristics with significant Kendall’s concordance or rater agreement (W). The type of waqf-based IFI could be a bank, venture capital or cooperative; the business orientation should be a combination of commercial-social, and it could be implemented in the national, community or micro level. Based on the agreed characteristics, the authors propose several waqf-based IFI, including integrated commercial-social waqf-based bank, integrated commercial-social waqf-based venture capital and integrated commercial-social waqf-based cooperative.

Research limitations/implications

Respondents of this study comprise experts and practitioners who reside in Indonesia so that the results of proposed waqf-based IFIs are most suitable to be implemented in Indonesia.

Practical implications

The conceptual framework and method used in this study could be applied to determine the characteristics of waqf-based IFI and propose the most suitable waqf-based IFI models in other countries.

Originality/value

This study starts with determining the essential characteristics of waqf-based IFI, which then be used to propose waqf-based IFI models.

Keywords

Acknowledgements

The authors would like to thank Department of Islamic Economics and Finance, Bank Indonesia, for the funding that made this study possible.

Citation

Ascarya, A., Husman, J.A. and Tanjung, H. (2023), "Determining the characteristics of waqf-based Islamic financial institution and proposing appropriate models for Indonesia", International Journal of Ethics and Systems, Vol. 39 No. 1, pp. 143-164. https://doi.org/10.1108/IJOES-01-2022-0001

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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