Darulfunun Institute

Institute for Development, Research and Initiatives (IDRIS)

Tag: productive waqf

  • The Transformation of Productive Waqf as an Instrument of Empowerment and Welfare: An Analysis of Waqf Management Effectiveness at BPW Ar Risalah, Padang City

    » AL-IMAM: Journal on Islamic Studies, Civilization and Learning Societies

    Aim: This study aims to analyze the effectiveness of productive waqf management in improving the welfare of beneficiaries at the Waqf Management Board (BPW) Ar Risalah, Padang City. Method: The study employed a descriptive qualitative approach with field research. Data were collected through in-depth interviews with four beneficiaries and institutional documentation, and analyzed through data reduction, data display, and conclusion drawing based on five effectiveness indicators: program understanding, target accuracy, timeliness, goal achievement, and monitoring. Results: BPW Ar Risalah is effective as a benefit distributor (distributive effectiveness): targeting is perceived as accurate, distribution is generally on time with one compensated delay, and monitoring is conducted periodically according to the type of beneficiary. Social assistance of IDR 500,000 per month, scholarships of IDR 1,500,000 per semester, and income of IDR 1,500,000 per month contribute to meeting living needs, education, and income stability, with job creation as the most transformative benefit. However, transformative effectiveness cannot yet be fully concluded: beneficiaries’ understanding of the concept and mechanism of productive waqf remains limited, the benefit amounts are supplementary, and monitoring does not yet measure impact. Novelty: This study assesses the effectiveness of productive waqf directly from the beneficiaries’ perspective using five indicators within a single analytical framework, and distinguishes distributive from transformative effectiveness. Productive waqf has the potential to become an empowerment instrument, provided that beneficiary literacy, follow-up empowerment pathways, impact evaluation, and asset performance transparency are strengthened.

  • Optimizing Cash Waqf Investment through Asset Diversification and Nazhir Capacity Building: A Case Study of the Muhammadiyah Cash Waqf Board in West Sumatra

    » AL-IMAM: Journal on Islamic Studies, Civilization and Learning Societies

    Aims: This study aims to analyze the optimization of waqf investment at Badan Wakaf Uang Muhammadiyah (BWUM) West Sumatra by focusing on waqf asset diversification, investment management, risk control, and the utilization of investment returns for community welfare. Method: This research employs a qualitative approach using an ex-post facto method. Data were collected through interviews and documentation related to waqf investment management at BWUM West Sumatra. The data were analyzed descriptively to examine the practices of investment development, supervision, reporting, risk management, and distribution of waqf benefits. Results: The findings indicate that BWUM West Sumatra has developed waqf funds through Islamic financial institutions and productive business activities, including UD Berkah. However, several investments have been discontinued due to considerations of efficiency and sustainability. Waqf investment management is supported by supervision, financial reporting, reserve fund establishment, and the distribution of investment benefits to social, educational, and healthcare sectors. These findings demonstrate that waqf investment optimization requires a balance between asset development, risk control, professional nazhir management, transparency, and the orientation toward public welfare. Conclusion/Novelty/Implications: The novelty of this study lies in its integrated analysis of waqf investment optimization by linking asset diversification, investment management, risk control, and the utilization of investment returns within the context of BWUM West Sumatra. The findings imply that strengthening nazhir professionalism, investment governance, transparency, and risk management is essential to ensure the sustainability and productivity of waqf assets. Future efforts should emphasize broader asset diversification, more strategic investment planning, and the development of productive waqf models that generate sustainable socio-economic benefits for the community.