Strategy of BMT Bima Magelang in Improving Public Welfare Thought Cash Waqf

Abstract

Cash waqf is one of the methods used to help people with various activities and overcome challenges such as poverty reduction. As a result, it is vital to have an institution that can handle cash waqf effectively and optimally. BMT Bima Magelang is one of the cash waqf institutions that can correctly manage its cash waqf assets in order to increase social welfare. The goal of this study was to determine excellent and proper cash waqf administration in line with Sharia and the standards of good waqf governance, in order to increase social welfare, particularly in Baitul Maal Wa Tamwil Bima Magelang. Because BMT Bima Magelang is one of the waqf institutions that has been successful in managing cash waqf with effective waqf governance in order to increase social welfare. This study employs qualitative research, with data gathered through structured interviews, passive participation observation, and recording. After that, the data was examined using qualitative descriptive analysis. The qualitative descriptive research approach describes the features of phenomena in the field and explains the study object. The findings of this study show that Baitul Maal Wa Tamwil Bima Magelang uses waqf management with the mudhorobah system, with mudhorobah financing allocated to goat farmers and Micro, Small and Medium Enterprises (MSMEs), and that in the management of cash waqf BMT Bima Magelang implements good waqf governance, which improves social welfare through social programs. Profits from the finance are then utilized to fund businesses and make loans. The revenues from the mudhorobah finance are then utilized for financing (scholarships) for BMT members, financing for child circumcision, and rehabilitation of locals' houses that are unsuited for habitation. These several factors indicate that BMT Bima Magelang's cash waqf management is in conformity with cash standardization, good waqf governance, and sharia management.