Abstract
This study will try to measure the efficiency of waqf funds in zakat institutions in Indonesia using the non-parametric Data Envelopment Analysis (DEA) method. The objects in this study are eight zakat institutions that manage waqf funds in Indonesia. The data in this study comes from the annual reports of each of these institutions during the period 2013-2020. The input variables in this study include operational costs and HR costs. In comparison, the output variables in this study include the collection and distribution of waqf funds. This study indicates that during 2013-2020, the efficiency of zakat institutions in managing waqf funds has a fluctuating trend. This study will also look at the possibility of improving inefficient programs from input and output variables; in general, the main factor in the efficiency of waqf funds lies in the output variable, namely the acceptance and distribution of waqf funds. In addition, this study provides a reference for other decision-making units (DMUs) in improving efficiency, and the average DMU used as a reference is the one who has good professionalism and innovation.
 Keyword : Waqf fund, Data envelopment analysis (DEA), Efficiency, Indonesia
Highlights
BackgroundWaqf can be defined as the transfer of funds and other resources from consumption and investment as productive assets to provide results or income used for individual and group consumption in the future
Table 2 shows descriptive statistics of input and output variables of waqf funds managed by zakat institutions in Indonesia from 2013-2020
This study analyzes the efficiency of waqf funds managed by zakat institutions in Indonesia during the period 2013-2020 using the Data Envelopment Analysis (DEA) method
Summary
BackgroundWaqf can be defined as the transfer of funds and other resources from consumption and investment as productive assets to provide results or income used for individual and group consumption in the future. Waqf has played an important role since the beginning of Islamic civilization, which is generally related to religion and society's economic system. This Islamic institution is widespread and accepted as one of the foundations for building society, especially in terms of meeting basic needs and functioning as a supporter of the system by providing free public infrastructure. Since the early days of Islam, this institution has played an important social and economic role For this reason, Waqf must be managed productively following its purpose, function, and designation to prosper the community (Haq & Anam, 2004)
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