ISSUES ON WAQF AND ROLES OF WAQF AUTHORITIES: EVIDENCE FROM INDONESIA AND SINGAPORE

Abstract

The Waqf sector is acknowledged for its huge potential, especially to provide welfare and economic upliftment in contemporary society. To unlock the potential of waqf institutions, a supportive enabling environment is necessary. Hence, the issues of a conducive environment faced by the waqf stakeholders in Indonesia and Singapore need to be explored. Dual authorities’ roles are examined in addressing the issues. 22 in-depth interviews, 3 focus group discussions, observations, and reviews of relevant documents (regulations, reports, news, etc.) are conducted in Indonesia – a majority Muslim, and Singapore – a minority Muslim country. Collected data are then analysed thematically employing the lens of organisational legitimacy theory. This study shows that institutional challenges confound waqf developments as well as waqf stakeholders’ interest in the two countries under study. While the challenges faced by waqf institutions are prevalent in the existing regulatory environment, they also bring embedded consequences to waqf administration and policies. In Indonesia, the multiple conflicting roles of the Indonesian Waqf Board (Badan Wakaf Indonesia/BWI) and dual waqf authorities between the Ministry of Religious Authorities (Kementrian Agama/Kemenag) and BWI present institutional challenges that cause ineffective governing functions of waqf authorities. In Singapore, institutional challenges in the form of multiple roles of MUIS along with their government-affiliated policy direction raised concerns on conflict of roles and centralized administration, which caused national policy vis a vis social inclusion trade-off for the waqf. From the organizational legitimacy perspective, waqf authorities need to embrace the stakeholders’ expectations to focus on and enhance their roles as regulators and supervisors of the waqf sector.