Abstract
This study attempts to identify the causes and dominant factors that hinder the development of cash waqf in Indonesia, using the IFE-EFE Matrix and SWOT methods, while offering solutions to solve it. Based on the results of IFE analysis, the highest-rank of strengths is the ability of cash waqf in expanding the base of waqf fund sources followed by the ease and zero cost of funds. In comparison, the top weaknesses are the lack of socialisation to the community and the lack of professional nazhir human resources. The results of EFE analysis imply the highest-rank opportunity is the potential of unlimited cash waqf followed by the emergence of many sharia financial institutions and Islamic economics study programs in universities. Meanwhile, the top threat is a weak political will of authorities, followed by the majority of traditional nazhir. It is expected that there will be a joint commitment from various parties, both from policymakers and academics and practitioners to support and encourage efforts to develop the Islamic (social) finance industry, especially in developing cash waqf in Indonesia.
Highlights
The Islamic finance industry has always been an interesting object of study, especially if it is compared with the conditions of the conventional financial industry that have already existed before
This study attempts to identify the causes and dominant factors that hinder the development of cash waqf in Indonesia, using the Internal Factor Evaluation (IFE)-External Factor Evaluation (EFE) Matrix and SWOT methods, while offering solutions to solve it
In this study, internal and external problems identification is needed to find out strengths, weaknesses, opportunities and threats in the context of developing cash waqf in Indonesia
Summary
The Islamic finance industry has always been an interesting object of study, especially if it is compared with the conditions of the conventional financial industry that have already existed before. The results of research conducted by Nurfalah & Rusydiana (2018) which states that Islamic banking is relatively more stable compared to conventional banking in tackling external and internal shock. Besides financial institutions such as Islamic banks, sharia insurance, sharia pawnshops, Islamic social finance institutions have an essential role. Ayedh et al (2018) examine waqf accountability in Yemen; Hossain (2019) conducts microfinance-based research endowments in Bangladesh; Hamber & Haneef (2017) studied about waqf in Singapore. Cash waqf (waqf al nuqud) is an endowment by a person, group of people, institution or legal entity in the form of cash, including
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