Developing cash waqf models for Baitul Maal wat Tamwil as integrated Islamic social and commercial microfinance
Journal of Islamic Accounting and Business Research
ISSN: 1759-0817
Article publication date: 11 November 2022
Issue publication date: 6 June 2023
Abstract
Purpose
This study aims to develop cash waqf models for Baitul Maal wat Tamwil (BMT), a special Islamic microfinance institution in Indonesia, combining Islamic social finance in Baitul Maal (house of wealth) division and Islamic commercial finance in Baitut Tamwil (house of asset development) division, as integrated Islamic social and commercial microfinance in Indonesia, to achieve triple bottom-line, including outreach, sustainability and welfare impact.
Design/methodology/approach
This study uses Delphi and analytic network process methods, with three groups of relevant respondents, including experts (academic), BMT practitioners and regulators.
Findings
The results show that the best cash waqf model for BMT is “BMT as Nazir (waqf manager) and also as cash waqf receiver Lembaga Keuangan Syariah Penerima Wakaf Uang (LKSPWU)”, followed by “BMT Association as representative Nazir of several certified BMTs”. Moreover, “long-term investment deposit” is the best to account cash waqf in the BMT balance sheet. With regard to financing, the most preferred one is “financing to regular Micro and Small Enterprises” of BMT members.
Research limitations/implications
Having allowed BMT to be Nazir (waqf manager), this research might only benefit Indonesian policymakers, such as the Financial Services Authority and the Ministry of Cooperatives, BMTs and the National Waqf Board. But it may also benefit other countries which have similar characteristics.
Practical implications
BMTs could adopt several alternatives of best models in managing cash waqf most appropriate for their specific conditions.
Social implications
The management of cash waqf by BMT could help the social activities of the Baitul Maal through social cash waqf and, indirectly, by productive cash waqf.
Originality/value
Studies have been limited, and to the best of the authors’ knowledge, there is no specific study discussing the integrated cash waqf model, cash waqf account and cash waqf investment appropriate for BMT.
Keywords
Citation
Ascarya, A., Sukmana, R., Rahmawati, S. and Masrifah, A.R. (2023), "Developing cash waqf models for Baitul Maal wat Tamwil as integrated Islamic social and commercial microfinance", Journal of Islamic Accounting and Business Research, Vol. 14 No. 5, pp. 699-717. https://doi.org/10.1108/JIABR-09-2020-0267
Publisher
:Emerald Publishing Limited
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