Management of Waqf Assets at Waqf Institutions in Indonesia

Abstract

Waqf is one of the financial instruments in Islamic economics used in the time of the Prophet. The waqf assets currently managed still revolve around land assets, mosques, madrasah or Islamic boarding schools and funerals. The implementation of most waqf institutions does not have good waqf asset management, causing manipulation of waqf asset availability or loss of waqf assets. Therefore, research problem formulation 1) how is the condition of asset management waqf at the waqf institution in Indonesia? And 2) How is the model of waqf asset management in the waqf institution in Indonesia? The contribution of this research is to offer the performance of waqf asset management at the waqf institution in Indonesia. The result of this study is the condition of waqf asset managementhas not yet fulfilled all stages, such as the making of a waqf pledge deed at the planning stage. And financial reporting at the evaluation and monitoring stage. And Nadzir has yet to meet the asset management model of waqf wealth protection.

Reinforcing the Position of Waqf in the Islamic Financial Ecosystem in Indonesia

“…The poor coordination flow reflects the failure to build an ideal institutional model with the IWA support. Besides the vertical coordination, Nazhir also needs horizontal coordination, which is coordinating with similar or at the same-level institutions and the public (Senjiati et al 2020). Here, the horizontal coordination in a Nazhir institution that manages waqf properties belonging to the public is manifested in terms of socialization or dissemination of financial performance as accountability for public satisfaction.…”

“…Reinforcing the role and function of IWA in formulating the national waqf regulations is essential, especially to create a role model in supervising Nazhir (Senjiati, 2020). According to Fitri & Wilantoro (2018), without the supervision from the IWA, Nazhir institutional development will slow down.…”

“…In most cases, a Nazhir is appointed based on patronage system. In such a system, prominent figures (both in rural and urban areas) are selected without considering reliable management capacity (Senjiati et al 2020). Consequently, most of Nazhir have applied conservative approaches in developing waqf properties.…”

Efficiency analysis of productive waqf management at Jogokariyan Mosque Yogyakarta

“…Productive Waqf management by the Waqf nazir is not free from problems, one of which is the problem of Waqf production, Waqf can only be called productive if it has a production process that produces output either services or goods where the results can be utilized for the benefit of the people (Wahyuningsih & Widyastuti, 2018). The measurement of production efficiency in productive Waqf is quite important to determine the Waqf management strategy (Senjiati & Yadiati, 2021). Effective and efficient management greatly affects the positive image of Waqf management institutions in the eyes of the community.…”

“…In previous research conducted by Senjiati & Yadiati (2021), the level of efficiency of Waqf management institutions was measured using the Data Envelopment Analysis (DEA) approach with the input variables included being operational costs and asset depreciation costs. For output variables included are Waqf fund income and utilization of Waqf assets.…”