Is Cash Waqf Linked Sukuk (CWLS) Less Than Ideal According to Islamic Laws?

Abstract

As a step to promote public interest in conducting cash waqf, the government launched a program called the National Money Waqf Movement (GNWU) which also introduced Cash Waqf Linked Sukuk (CWLS) Retail Series SWR001 which is a development of the CWLS (SW Series). Both are developments of the Money Waqf and Sukuk (State Sukuk) which have been regulated in the DSN-MUI Fatwa No. 131/DSN-MUI/X/2019. Law No. 41 of 2004, concerning Waqf, and Law No. 19 of 2008, concerning State Sharia Securities (SBSN). CWLS is a form of social investment in Indonesia where the cash waqf is received by the Indonesian Waqf Board as Nazhir through a Sharia Financial Institution as a Cash Waqf Recipient (LKSPWU). It will be managed and placed on the State Sukuk or SBSN instrument and the proceeds of its development are used to finance various economic, social and religious activities. Nonetheless, this CWLS model is perceived to be less than ideal by some parties. This study adopted a qualitative method using using library research approach. The data were collected through analysing literature papers, documentation and conducting an interview. Descriptive-analysis used to compare the statutory provisions, fatwas of MUI, and fiqh rules with the implementation of CWLS. The findings in this study indicate that CWLS is an appropriate with Indonesian context and Islamic principles.