Cash Waqf Linked Sukuk: Issues, Challenges and Future Direction in Indonesia

Abstract

Cash Waqf Linked Sukuk (CWLS) is the first innovation sukuk-based modern waqf fundraising development issued by the Indonesian government in 2020. People who prefer to channel their social funds in zakat, infaq, and shodaqah make CWLS less desirable. This paper evaluates the issues, challenges and future direction from the issuance of the CWLS series SWR001 by the Indonesian government. This study used systematic literature review analysis and used Publish or Perish software with Google Scholar as the database. A total of 48 articles published from 2016 to 2021 were selected. Object of this research is the SWR001 series. Systematic data analysis is used to define relevant themes within the topic.The dominance of individual waqf (99.6%) shows that even though SWR001 was offered during the Covid-19 pandemic, it is still in demand by investors (wakif). Even so, less than optimal sales results make nadzir having to re-evaluate the implementation of social programs that had been planned before. Issues and challenges in the development of CWLS products include relatively new products, limited distribution partners and nadzir, low coupons, lack of public understanding, contracts, and incomplete literacy causing the potential wakif not to be maximized. In the future, to increase the CWLS collection, stakeholders is need to ensure the information and mobilization through word-of mouth with the objective to create a positive word of CWLS. Improving communication strategies, ease of service and professionalism nadzir to be very important to do.

Muslim Intention to Participate in Retail Cwls: The Test of Mediation and Moderation Effects

“…Some previous studies related to cash waqf intention will be explored and supported in this study (Azizi et al, 2019;Dennis et al, 2018;Kasri & Chaerunnisa, 2020;Niswah et al, 2020;Niswah et al, 2019;Osman & Muhammed, 2017;Purnomowati et al, 2020;Syafira et al, 2020;Zabri & Mohammed, 2018;Haidlir et al 2021). However, there are only limited studies related to CWLS (Baiti & Syufaat, 2021;Hiyanti et al, 2020;Paul et al, 2021;Tanjung & Windiarto, 2021;Yasin, 2021). Tanjung and Windiarto (2021) explain that the integration between cash waqf and Sukuk can increase the benefits of the fund.…”

“…Another study showed that religiosity positively impacts attitude, Islamic egalitarianism and behavioural intention (Dennis et al, 2018). However, as this CWLS is a relatively new program, it found obstacles related to limited partners and literacy (Yasin, 2021). In this digital era, literacy can be broadened through technology and waqf can be accessed easily through financial technology.…”

“…This study fills the gap in previous studies in the context of Islamic social finance, especially Retail CWLS. First, it focuses on elaborating Retail CWLS, a discussion which remains very limited (Yasin, 2021). Second, many studies related to Sukuk Waqf or CWLS are limited to theoretical and conceptual discussions (Himam & Umam, 2018;Maspupah & Hasanah, 2016;Musari, 2019;Paul et al, 2021;Syairozi & Cahya, 2016;Yunita, 2020).…”

Sukuk Linked Waqf Perspective Abu Zahra’s Maqashid Sharia Model as Financial Investment Product

“…Waqf's concerns have been important because of the efforts of modern scholars, who have shown the benefits of Waqf's activities in contemporary society, including its applications and the challenges involved. Most prior studies have shown that waqf cash is an efficient tool to be an alternative to reducing poverty because these projects need vast amounts that the government cannot get altogether (Yasin, 2021). Two forms of waqf and Sukuk combinations are being developed, namely Cash Waqf Linked Sukuk and Sukuk Linked Waqf.…”

Logistic Regression Analysis in Revealing Probability of Indonesian Moslem Community's Understanding About Cash Waqf Linked Sukuk (CWLS)

“…The CWLS investors collection is still facing some obstacles such as: lack of understanding of the Moslem community about cash waqf (Napitupulu et al, 2021), lack of public trust in cash waqf management institutions and lack of willingness to donate cash waqf ( (Sukmana, 2020); (Shukor et al, 2017); (Yasin, 2021); (Kasri & Chaerunnisa, 2021)). Based on previous studies, factors such as Age, Income, and Education are the main determinants of understanding of the Moslem community about waqf-based financial institutions in Indonesia ( (Efrizon, 2008); (Khan et al, 2020); (Shukor et al, 2017)).…”