Cash waqf linked sukuk as an instrument of national-scale community economic empowerment based on a functionalist sociology perspective

Abstract

Indonesia is a country with a Muslim majority which makes the potential of Waqf (Islamic philanthropy) very large and needs to be developed for better management in empowering the community in the productive business sector. This study discusses waqf sukuk which is an innovation in collecting cash waqf by the Ministry of Finance and Indonesian Waqf Agency which is then used for broad economic empowerment which is in line with the potential amount of cash waqf in Indonesia. This study aims to find a sustainable productive business mechanism based on statistics on the development of business sector and uses qualitative analysis methods using a functionalist sociology perspective on waqf management agency and institutions in Indonesia. This study found that productive business that can be done is in the creative economy sector and the manufacturing industry with three stages, namely the beginning, transition, and the end with several considerations, namely capital, human resources, technological developments, and changing times. With this mechanism and assuming that the waqf management agency or institution can be sustainable and centrally coordinated and mutually supportive, national-scale economic empowerment can be achieved and sustainable productive efforts will create community economic independence based on cash waqf linked sukuk (CWLS).