Waqf based Islamic Fintech Model for Agriculture Sector of Indonesia

Abstract

This paper focuses on providing a waqf based Islamic fintech model that will work on the root cause of many problems faced by farmers such as, lack of farming equipment due to insufficient funds and other problems arising due to inadequacy of working capital. The paper is based on the qualitative method of study. Through the proposed model it is believed that the current challenges faced by farmers in Indonesia in the field of Agriculture, can be targeted and rectified as it aims basically on the root cause of the main problems, which are insufficient working capital and lack of equipment and other means of farming due to lack of funds and limited reach to financing sources. This study suggests the adoption of an integrated Waqf based Islamic fintech model which provides halal financing to the farmers for their need of working capital, and equipment. It also suggests intensifying the reach of financial institutions through vendors of farming equipment for financing the needs of farmers in rural areas.

The Role of Knowledge and Trust in Explaining Intention of Performing Waqf in Agricultural Sector

“…In this case, ATB is a latent variable with the most significant influence compared to other variables on the hypothesis built to explain waqf intention in agricultural sector. Several previous research proposed waqf-based financing model using cash waqf only, land waqf, or collaboration between the two (Ahmad, 2018;Azganin et al, 2021;Khan et al, 2021;Majid, 2021Majid, , 2022Moh'd et al, 2017;Ningrat & Nurzaman, 2019;Olaniyi et al, 2014;Shafiai et al, 2015). This research is in line with Hasbullah et al, (2016), Osman et al, (2016), Osman & Muhammed (2017), Kasri & Chaerunnisa (2020), Razak et al, (2021), Chetioui et al, (2022), and Zawawi et al, (2022 in relation of intention to perform waqf in Indonesia and Malaysia.…”

Aspek Hukum Waqf FinTech: Perkembangan dan Tantangannya di Indonesia

“…Wakaf sebagai bagian dalam Islamic Social Finance memiliki peranan yang sangat strategis dalam pembangunan dan pemerataan kesejahteraan rakyat apabila dikelola secara maksimal. Wakaf secara harfiah berarti menghentikan, menangguhkan atau menahan (Khan et al, 2021), yang secara hukum dimaknai sebagai penyerahan suatu harta atau menyungbankannya untuk tujuan beragama, bertaqwa dan beramal. Wakaf di Indonesia sendiri diatur dalam Undang-Undang Nomor 41 Tahun 2004 Tentang Wakaf (UU Wakaf).…”

Mapping Islamic Fintech Research: A Bibliometric Analysis

“…Some issues related to accessibility to finance and asymmetric information can be overcome using this model. Bilal Khan et al, (2021) proposed Islamic FinTech model on the basis of cash waqf and multiple Islamic Finance contracts to tackle financial issues in agricultural sector. Furthermore, using such a model, transparency of all the details of transaction between farmers and investors can be properly maintained and the time needed to do all the process can be shortened.…”