Is Cash Waqf Linked Sukuk (CWLS) Less Than Ideal According to Islamic Laws?

Abstract

As a step to promote public interest in conducting cash waqf, the government launched a program called the National Money Waqf Movement (GNWU) which also introduced Cash Waqf Linked Sukuk (CWLS) Retail Series SWR001 which is a development of the CWLS (SW Series). Both are developments of the Money Waqf and Sukuk (State Sukuk) which have been regulated in the DSN-MUI Fatwa No. 131/DSN-MUI/X/2019. Law No. 41 of 2004, concerning Waqf, and Law No. 19 of 2008, concerning State Sharia Securities (SBSN). CWLS is a form of social investment in Indonesia where the cash waqf is received by the Indonesian Waqf Board as Nazhir through a Sharia Financial Institution as a Cash Waqf Recipient (LKSPWU). It will be managed and placed on the State Sukuk or SBSN instrument and the proceeds of its development are used to finance various economic, social and religious activities. Nonetheless, this CWLS model is perceived to be less than ideal by some parties. This study adopted a qualitative method using using library research approach. The data were collected through analysing literature papers, documentation and conducting an interview. Descriptive-analysis used to compare the statutory provisions, fatwas of MUI, and fiqh rules with the implementation of CWLS. The findings in this study indicate that CWLS is an appropriate with Indonesian context and Islamic principles.

A Comprehensive Study on the Scientific Literatures Performance of Cash Waqf Linked Sukuk (CWLS) using NVivo

“…This diagram summarizes the research approach used in research methodology related to CWLS in the scientific literature. It can be concluded that in the realm of research on CWLS, the dominant prevalence was found in the form of qualitative investigations in the form of literature studies with a percentage of 64.71% Afrianti, 2022;Anindhita et al, 2022;Armen et al, 2022;Cahyono et al, 2022;Hafandi et al, 2021;Indra et al, 2020;Istikomah et al, 2021;Lailatullailia et al, 2021;Maesarach et al, 2022;Mudriqoh, 2023;Mukti et al ., 2022;Nugroho et al, 2022;Puspitasari et al, 2022;Putri et al, 2020;Rahayu et al, 2020;Rahman et al, 2021;Maulina, 2022;Sa'idaturrohman , ;Sasongko et al, 2021;Siswantoro, ;Sulaeman et al, 2022;Tanjung & Agus, 2021 ;Ubaidilaah & Wahyu, 2021;Winarto et al, 2021; ANP (Afifah et al, 2022 ;Rabbani et al;Suratman et al, 2023) (Nurjamil, 2021), content analysis (Wati et al, 2022) and SLR Joseph, 2022).…”

Sentiment Analysis on Cash Waqf

“…In addition to the above opinion, another opinion used by the MUI is the opinion of some Hanafi madhhab scholars, namely Abdullah bin Mas'ud who explained that, "what Muslims consider good is good in the sight of Allah, and what Muslims consider bad is bad. in the sight of Allah (Hafandi and Handayati, 2021).…”

Islamic social finance in Indonesia: Opportunities, challenges, and its role in empowering society

“…Zakat will also boost the economy through demand and incentives and increase social cohesion. In contrast, waqf has successfully provided public services in the past (Hafandi & Handayati, 2021).…”