The development of Sharia Bank social functions in money waqf in Indonesia

Abstract

Indonesia, as the majority of Muslims, has great potential in developing cash waqf through Islamic banking, because Islamic banks do not only have a financial function, but also have a social function. This study aims to analyze the development of the social function of Islamic banks in Indonesia in the field of cash waqf, based on Law Number 21 of 2008 concerning Islamic Banking and Law Number 41 of 2004 concerning Waqf. Through normative juridical research methods, it can be seen the level of legal synchronization and the conditions of its development. The results of this study indicate that from 2008 to early 2021 there was an increase in the number of Islamic banks receiving cash waqf in Indonesia, namely initially only 5 Islamic banks now became 23 Islamic banks, this was accompanied by an increase in socialization performance, through various digital devices owned by Islamic Bank. However, since the appointment of a Sharia Bank as LKS-PWU in 2008, LKS-PWU has not had an expansion or mining role as a cash waqf manager, so the social function of Islamic banks in Indonesia in terms of cash waqf is only as a recipient of waqf.