This paper aims to design the roadmap of Holistic Financial Inclusion (HFI) by Baitul Maal wat Tamwil (BMT), where Baitul Maal carries out social inclusion and Baitut Tamwil carries out financial inclusion, using Analysis Network Process (ANP). The results show that the most important aspects of HFI are Sustainability, Development Program, Financing Program and Islamic Microfinance Services, while the most important elements of HFI are regular meeting, micro savings, simplicity and easy access, consumption smoothing, bailout debt, savings program and income increase, followed by funding independent, total deposits, mindset change, and micro financing. HFI of BMT could be developed gradually. At the first stage, BMT should have the minimum 16 elements of HFI comprising 4 (four) Social Inclusion elements, 4 (four) Financial Inclusion elements, 4 (four) Double bottom-Line elements and 4 (four) Welfare Impact elements. At the second stage, BMT should add the next 16 elements comprising 5 (five) Social Inclusion elements and 3 (three) Financial Inclusion elements, 5 (five) Double Bottom-Line elements and 3 (three) Welfare Impact elements. Moreover, at the third stage, the remaining 24 elements of HFI should be fulfilled. All Islamic financial institution must have the characteristic of HFI.
Purpose 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. Design/methodology/approach 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. Findings 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. Originality/value 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.
Purpose This study aims to develop cash waqf models for Baitul Maal wat Tamwil (BMT), a special Islamic microfinance institution in Indonesia, combining Islamic social finance in Baitul Maal (house of wealth) division and Islamic commercial finance in Baitut Tamwil (house of asset development) division, as integrated Islamic social and commercial microfinance in Indonesia, to achieve triple bottom-line, including outreach, sustainability and welfare impact. Design/methodology/approach This study uses Delphi and analytic network process methods, with three groups of relevant respondents, including experts (academic), BMT practitioners and regulators. Findings The results show that the best cash waqf model for BMT is “BMT as Nazir (waqf manager) and also as cash waqf receiver Lembaga Keuangan Syariah Penerima Wakaf Uang (LKSPWU)”, followed by “BMT Association as representative Nazir of several certified BMTs”. Moreover, “long-term investment deposit” is the best to account cash waqf in the BMT balance sheet. With regard to financing, the most preferred one is “financing to regular Micro and Small Enterprises” of BMT members. Research limitations/implications Having allowed BMT to be Nazir (waqf manager), this research might only benefit Indonesian policymakers, such as the Financial Services Authority and the Ministry of Cooperatives, BMTs and the National Waqf Board. But it may also benefit other countries which have similar characteristics. Practical implications BMTs could adopt several alternatives of best models in managing cash waqf most appropriate for their specific conditions. Social implications The management of cash waqf by BMT could help the social activities of the Baitul Maal through social cash waqf and, indirectly, by productive cash waqf. Originality/value Studies have been limited, and to the best of the authors’ knowledge, there is no specific study discussing the integrated cash waqf model, cash waqf account and cash waqf investment appropriate for BMT.
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