Integrated Maqasid Al-Shariah in Cash Waqf Linked Deposit: A Study Approach to Sustainable

Dian Valentina Tumanggor

doi:10.59059/jupiekes.v2i4.1724

Authors

Dian Valentina Tumanggor Trisakti University

DOI:

https://doi.org/10.59059/jupiekes.v2i4.1724

Keywords:

Cash Waqf, CWLD, LKS, Maqasid al-Shariah, Nazir, Sustainable Finance, PWU

Abstract

To strengthen the characteristics of Islamic banking and increase its contribution to the national economy, OJK developed a unique Islamic product called Cash Waqf Linked Deposit (CWLD). This research aims to investigate the effects of CWLD empowerment programs on the welfare of beneficiaries, financial inclusion, social participation, and spiritual growth, aligning with the principles of Maqasid al-Shariah. These principles focus on poverty eradication, social justice, and economic welfare through Hifze deen (faith preservation), Hifze maal (wealth preservation), and providing the poor with access to productive resources like education, training, and credit. The study examines OJK's initiative to enhance Islamic bank participation in cash waqf management for sustainable finance and broader objectives of Maqasid al-Shariah. In-depth interviews with seven key figures (two donors, three waqf institution representatives, and two managers) are analyzed using NVivo software. The findings reveal a high level of alignment between the proposed CWLD product design and stakeholder expectations. This strong alignment underscores the product's capacity to meet the objectives of Maqasid al-Shariah, such as poverty eradication, social justice, and economic welfare. By addressing these fundamental Islamic principles, the CWLD product contributes to sustainable finance, ensuring that financial activities support long-term economic stability, social inclusion, and environmental sustainability.

References

Abdullah, S. &. (2012). The objectives of shariah (maqasid shariah) in takaful: Highlighting the noble practice.

Al Arif, M. N. (2012). Wakaf Uang dan Pengaruhnya terhadap Program Pengentasan Kemiskinan di Indonesia., . Jurnal Indo-Islamika, 2(1), 17–29.

Al-BàLabakī. (1990). Maqasid al-Shariah . Islamic Banking and Finance.

Al-Zuhaily, W. (1994). Al-wajiz fi usul al-fiqh. . Dar Al-Fikr.

Aracil, E. N.-S. (2021). Sustainable banking: A literature review and integrative framework. Finance Research Letters, 42, 101932.

Budiarto, U. (2021). Pengembangan Digitalisasi dan Integrasi Data Wakaf Nasional. Komisi Nasional Ekonomi Dan Keuangan Syariah (KNEKS).

BWI. (n.d.). Retrieved from https://www.bwi.go.id/8706/2023/04/16/indeks-wakaf-nasional-2022/

Cizakca, M. (1996). The Relevance of the Ottoman Cash Waqfs (Awqaf al Nuqud) for Modern Islamic Economics. Financing Development is Islam, Seminar Proceedings Series, no. 30.

Dikau, S. &. (2021). Central bank mandates, sustainability objectives and the promotion of green finance. Ecological Economics, 184, 107022.

Forte, G. M. (2011). A Comparison of Socially Responsible and Islamic Equity.

Grassa, R. (2016). Corporate governance and credit rating in Islamic banks: does Shariah governance matters? Journal of Management & Governance, 875-906.

Hasan, R. &. (2019). Mediating Role of Trust in Cash Waqf Donations. Springer International Publishing. doi:https://doi.org/10.1007/978-3-030-18449-0

Indonesia, B. W. (2023, April 16). Retrieved from Badan Wakaf Indonesia. (2023, April 16). Indeks wakaf nasional 2022.

Jan, A. A. (2021). Developing an Islamic Corporate Governance framework to examine sustainability performance in Islamic Banks and Financial Institutions. Journal of Cleaner Production.

Jan, A. A. (2021). Developing an Islamic Corporate Governance framework to examine sustainability performance in Islamic Banks and Financial Institutions. Journal of Cleaner Production, 315, 128099.

Kahf, M. &. (2017). Cash waqf: an Innovative Instrument of Personal Finance in Islamic Banking. Journal of Islamic Economics, Banking and Finance,, 13(3), 13–29.

Kementerian Agama. (2024). Retrieved from https://kemenag.go.id/nasional/potensi-capai-rp180-t-kemenag-perkuat-kualitas-nazir-dan-kebijakan-tata-kelola-wakaf-uang-nNKZD

Lesmana, S. &. (2019). Maqasid Shariah Based Performance of Islamic Banks, Islamic Corporate Governance, and Contingency Theory: a Theoretical Framework. International Journal of Accounting, Finance and Business (IJAFB), 4(24), 70-86.

Muhammad, A. D. (2018). The Role Of Islamic Social Finance.

Nugraha, A. L. (2022). Waqf literacy: The dynamics of waqf in Indonesia. . Journal of Islamic Economics and Finance Studies, , 3(2), 102-120.

Park, H. &. (2020). Transition towards green banking: role of financial regulators and financial institutions. . Asian Journal of Sustainability and Social Responsibility, , 5(1), 1-25.

Prasetya, R. H. (2021). Strategi Pengembangan Pemasaran Sukuk Wakaf Ritel Indonesia. Al-Muzara’ah, 9(2),.

Rabe, N. S. (2018). Perceptual Study on Conventional Quality of Life Indicators. Planning Malaysia, 16(1), 303-313. doi: https://doi.org/10.21837/PM.V16I5.433

Rahman, M. &. (2019). Cash Waqf Deposit Product : An Innovative Instrument of Islamic Banks for Socio-Economic Development in Bangladesh. Springer International Publishing. doi:https://doi.org/https://doi.org/10.1007/978-3-030-18445-2

Saad, M. A. (2019). Financial Technology (FinTech) Services: Analysis from the Perspective of Maqasid Al-Shariah. Journal of Social Science and Humanities, , 2(6), 6-11. doi:https://doi.org/10.26666/rmp.jssh.2019.6.2Said, R.

Ullah, S. J. (2014). Socially responsible investment: insights from S hari'a departments in I slamic financial institutions. Business Ethics: A European Review, . 218-233.

Utomo, S. G., & Ismal, R. (2024). CASH WAQF LINKED DEPOSIT POTENTIAL FOR REVITALIZING ISLAMIC BANKING IN INDONESIA. Jurnal Ekonomi dan Keuangan Islam.

Zaidan, A. K. (1968). Fiqh Al-Usrah .

Zakariyah, L. S. (2022). Investment of Tabung Masjid in Malaysia toward Fulfilling Maqasid-Al-Shariah. In Islamic Philanthropy: Exploring Zakat, Waqf, and Sadaqah in Islamic Finance and Economics.

Zulfa, A. M. (2024). Analisis Cash Waqf Linked Deposit (CWLD) Perspektif Empat Mazhab. . JES (Jurnal Ekonomi Syariah), 9(2), 153-165.