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Designing simple productive waqf models for Indonesia

Ascarya Ascarya (University of Darussalam Gontor, Ponorogo, Indonesia and Institut Agama Islam Tazkia, Bogor, Indonesia)
Muhamad Nadratuzzaman Hosen (Syarif Hidayatullah State Islamic University, Jakarta, Indonesia)
Siti Rahmawati (Bank Indonesia, Jakarta, Indonesia)

International Journal of Ethics and Systems

ISSN: 2514-9369

Article publication date: 17 January 2022

Issue publication date: 30 June 2022




Productive waqf is one type of ethical business/investment, which should comply to Islamic law, with so many models to choose from. The purpose of this study is to determine factors of simple productive waqf, propose several simple productive waqf models and select the best simple productive waqf models appropriate to be adopted by waqf institution in Indonesia.


This study applies the analytic network process, including field survey, focused group discussion and in-depth interview, with two groups of respondents, namely, expert and waqf practitioner.


The results show that the determinants of simple productive waqf in Indonesia are the waqf institution, productive waqf asset to be developed, how to finance the productive waqf, how to manage the productive waqf and the compliance of productive waqf. Proposed productive waqf models include cash-waqf and self-managed model, Islamic bank financing and self-managed model, Sukuk and external partnership model, cash-waqf and external partnership and cash-waqf + co-financing and external partnership. Moreover, the best simple productive waqf model is cash-waqf and self-managed model, followed by cash-waqf and external partnership, where they could achieve the most in all socio-economic variables, well-being compliance and moral/ethics within the theory of unity of knowledge, Tawhid.

Research limitations/implications

The simple productive waqf models proposed are not exhaustive, since there are so many variations of the model. Moreover, the case and respondents are all Indonesian, so that the results are possibly only applicable to Indonesia.

Practical implications

To increase the probability of successful productive waqf development, waqf institutions could apply cash-waqf and self-managed model first, while other models could be applied in staged in line with waqf institution experience.

Social implications

The successful development of productive waqf could increase the social programs provided by waqf institutions to the society.


Productive waqf development is desperately needed due to many unproductive waqf lands in Indonesia, while studies have been limited, and there is no study discussing the productive waqf model appropriate for Indonesia.



Ascarya, A., Hosen, M.N. and Rahmawati, S. (2022), "Designing simple productive waqf models for Indonesia", International Journal of Ethics and Systems, Vol. 38 No. 3, pp. 380-401.



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