INTEGRATING ZAKAH AND WAQF FOR DEVELOPING ISLAMIC ECONOMIC BOARDING SCHOOL (IEBS) PROJECT IN INDONESIA
DOI:
https://doi.org/10.21111/jiep.v3i02.4577Abstract
As the most populous Muslim nation, Indonesia has a big potential to unlock its Islamic financial market. However, there is a call on human development in the field to ensure the sustainability of the system. This study attempts to investigate the untapped potential of youth generation in Indonesia. The paper employs a qualitative research in developing the waqf and zakah funds based on the practice of Forum Silaturrahim Studi Ekonomi Islam (FoSSEI). The study found that waqf and zakah funds in Indonesia might solve the Islamic financial literacy problem of the country. In addition, the paper suggested the framework on developing waqf and zakah funds in spreading the Islamic financial literacy through youth empowerment by designing Islamic Economic Boarding School (IEBS) project. The study recommended the policy makers to design robust zakah and waqf framework leading the industry and nation’s economy for the long-run prosperity.
References
Abdullah, Mohamad Azmi et al., ‘Factors determining Islamic financial literacy among undergraduates’, Journal of Emerging Economies and Islamic Research, vol. 5, no. 2, 2017, pp. 67–76 [https://doi.org/https://doi.org/10.24191/jeeir.v5i2.8805 ].
Abdullah, Mohamad Azmi and Alex Anderson, ‘Islamic Financial Literacy among Bankers in Kuala Lumpur’, Journal of Emerging Economies and Islamic Research, vol. 3, no. 2, 2015, pp. 79–94 [https://doi.org/https://doi.org/10.24191/jeeir.v3i2.9061. ].
Ahmad, Nurul Wajhi, Murni Yunus Mawar, and Norazlina Ripain, ‘Financial Literacy of Youth: A Case Study of Islamic Banking and Finance Students in Kolej Universiti Islam Antarabangsa Selangor’, Proceeding of the 3rd International Conference on Management & Muamalah 2016 (3rd ICoMM), 2016.
Aniq, Ahmad Fathan, Zakat Discourse in Indonesia Teachers’ Resistance to Zakat Regional Regulation in East Lombok, First edition, Germany: LAP LAMBERT Academic Publishing, 2011.
Antara, Purnomo M., Rosidah Musa, and Faridah Hassan, ‘Bridging Islamic Financial Literacy and Halal Literacy: The Way Forward in Halal Ecosystem’, Procedia Economics and Finance 37 ( 2016 ), Elsevier B.V, 2016 [https://doi.org/https://doi.org/10.1016/S2212-5671(16)30113-7 ].
----, ‘Conceptualisation and Operationalisation of Islamic Financial Literacy Scale’, Pertanika Journal Social Sciences & Humanities, vol. 25, 2017, pp. 251–60.
Ayuniyyah, Qurroh et al., ‘The Comparison between Consumption and Production-based Zakat Distribution Programs for Poverty Alleviation and Income Inequality Reduction’, International Journal of Zakat, vol. 2, no. 2, 2017, pp. 11–28 [https://doi.org/10.37706/ijaz.v2i2.22 ].
Azha, Latiff et al., ‘The Practice and Management of Waqf Education in Malaysia’, Procedia - Social and Behavioral Sciences, Elsevier B.V, 2013 [https://doi.org/https://doi.org/10.1016/j.sbspro.2013.07.061 ].
BAZNAS, Financial Statement Badan Amil Zakat Nasional, Jakarta, 2019, https://pid.baznas.go.id/wp-content/uploads/2020/06/Laporan-Keuangan-Tahunan-Tahun-2019.pdf.
Bhagwan, Pooja, ‘Empirical Study on Relationship between Financial Inclusion and Financial Literacy and Its Impact on Consumer Financial Behaviour: A Theortical Framework of Unbanked People’, Journal of Commerce & Accounting Research, vol. 8, no. 1, 2019, pp. 61–7, https://search.proquest.com/openview/06b9d7cfb2116c57907dfe441fd27bc4/1?pq-origsite=gscholar&cbl=2030934.
Biplob, Hossain and Md Faruk Abdullah, ‘The Importance of Islamic Financial Literacy for Muslims: A General Review’, Islam and Civilisational Renewal ICR Journal, vol. 10, no. 1, 2019, pp. 106–17, https://icrjournal.org/index.php/icr/article/view/773.
Chalim, Abdul, ‘Pengelolaan wakaf uang di Pondok Modern Tazakka Kota Batang ditinjau dari Panca Jiwa pondok dan Undang-undang nomor 41 tahun 2004 tentang wakaf’, Maulana Malik Ibrahim State Islamic University, 2016, http://etheses.uin-malang.ac.id/5299/.
Hasan, Fahadil Amin Al, ‘Waqf Management in Indonesia Through Asset Based Community Development (ABCD) Approach.’, International Journal of Social Science and Economic Research, vol. 2, no. 8, 2017, pp. 4070–87.
Htay, Sheila Nu Nu, Syed Ahmed Salman, and Soe Myint @.Haji Ilyas, ‘Integrating Zakat, Waqf and Sadaqah: Myint Myat Phu Zin Clinic Model in Myanmar’, Tazkia Islamic Finance and Business Review, vol. 8, no. 2, 2013, pp. 170–86 [https://doi.org/http://dx.doi.org/10.30993/tifbr.v8i2.68 ].
Huston, Sandra J., ‘Measuring Financial Literacy’, The Journal of Consumer Affairs, vol. 44, no. 2, 2010, pp. 296–316 [https://doi.org/https://doi.org/10.1111/j.1745-6606.2010.01170.x ].
Islamic Financial Services Board, Islamic Financial Services Industry Stability Report 2018, Kuala Lumpur, 2018.
Ismail, Rifki, The Indonesian Islamic banking theory and practices : theory and practices, First edition, Depok: Gramata Publishing, 2011.
Ismal, Rifki, Islamic Banking in Indonesia: New Perspectives on Monetary and Financial Issues, First edition, United States: John Wiley & Sons, 2013, https://www.wiley.com/en-us/Islamic+Banking+in+Indonesia%3A+New+Perspectives+on+Monetary+and+Financial+Issues-p-9781118509951.
Kahf, Monzer, ‘Waqf: A Quick Overview, 2’, kahf. net: http://monzer. kahf. com/papers/english/WAQF_A_QUICK_OVERVIEW. pdf., 2015, http://monzer.kahf.com/papers/english/WAQF_A_QUICK_OVERVIEW.pdf.
Kasdi, Abdurrohman, ‘Peran Wakaf Produktif dalam Pengembangan Pendidikan’, QUALITY (Jurnal Pendidikan Islam) STAIN KUDUS, vol. 3, no. 2, 2015, pp. 433–52.
Kasim, M. Arif Budiman and Izzudin Edi Siswanto, ‘Analisis Efektifitas Pendayagunaan Zakah Produktif Pada Program Pemberdayaan Masyarakat di Wilayah Sukabumi (Studi Kasus: Kampoeng Ternak Dompet Dhuafa)’, urnal Ekonomi dan Perbankan Syariah, vol. 2, no. 1, 2014, https://journal.sebi.ac.id/index.php/jeps/article/view/143.
Kementrian Agama R.I., Standarisasi Amil Zakat di Indonesia, Jakarta: Direktorat Pemberdayaan Zakat, 2013, https://bengkulu.kemenag.go.id/file/file/Buku/Standarisasi_Amil_Zakat_di_Indonesia-2013.pdf.
Kinanti, Kamilah, Noviyanti, and Muhammad Hasbi Zaenal, The Role of Zakat to Strengthen The Rural Mustahiq Community Based on Entrepreneurship, no. 2, Jakarta, 2018, http://www.iconzbaznas.com/publications/index.php/pwps/article/view/91.
Lopus, Jane S., Dwi Sulistyorini Amidjono, and Paul W. Grimes, ‘Improving financial literacy of the poor and vulnerable in Indonesia: An empirical analysis’, International Review of Economics Education, vol. 32, 2019, pp. 100–68 [https://doi.org/10.1016/j.iree.2019.100168 ].
Mahamood, Siti Mashitoh and Asmak Ab Rahman, ‘Financing universities through waqf , pious endowment: is it possible?’, Humanomics, vol. 31, no. 4, 2015, pp. 430–53 [https://doi.org/10.1108/H-02-2015-0010 ].
Meera, Ahamed Kameel Myden et al., Islamic Financial System: Principles & Operations, ed. by Asyraf Wajdi Dusuki, Kuala Lumpur: International Shari’ah Research. Academy for Islamic Finance (ISRA), 2011.
Mohamed, Shereen, Abdulaziz Goni, and Shaima Hasan, Islamic Finance Development Report 2018, 2018.
Otoritas Jasa Keuangan, Statistik Perbankan Syariah, Jakarta: Departemen Perizinan dan Informasi Perbankan Republik Indonesia, 2019, https://ojk.go.id/en/kanal/perbankan/data-dan-statistik/statistik-perbankan-syariah/Pages/Sharia-Banking-Statistic---October-2019.aspx.
Pramono, Sigit and Dadang Rohmansyah, ‘Developing Strategic Model of Financial Education Through Islamic Microfinance Program: A Preliminary Study in Indonesia’, in Islamic Financial Literacy, First edition, ed. by Abdul Ghafar Ismail, Rose Abdullah, and Khalifa Muhamed Ali, Brunei Darussalam: UNISSA Press University Islam Sultan Sharif Ali, 2016, pp. 281–9, http://e-ilami.unissa.edu.bn:8080/jspui/handle/123456789/1126.
Rahim, Siti Hafizah Abdul, Rosemaliza Abdul Rashid, and Abu Bakar Hamed, ‘Islamic Financial Literacy and its Determinants among University Students: An Exploratory Factor Analysis’, International Journal of Economics and Financial Issues, vol. 6, no. S7, 2016, https://pdfs.semanticscholar.org/6b45/1f3ebdc65adf6ec98815c55c2ec01d69c3ad.pdf.
Rahman, Sazana Ab, Anas Tajudin, and Ahmad Fadzli Ahmad Tajuddin, ‘Determinant Factors of Islamic Financial Literacy In Malaysia’, American Journal of Humanities and Social Sciences Research (AJHSSR), vol. 2, no. 10, 2018, pp. 125–32,.
Sabri, Mohamad Fazli and Eugene Cheng-Xi Aw, ‘Financial Literacy and Related Outcomes: The Role of Financial Information Sources’, International Journal of Business and Society, vol. 20, no. 1, 2019, pp. 286–98.
Setiawati, Rike et al., ‘Islamic Financial Literacy: Construct Process and Validity’, Academy of Strategic Management Journal, vol. 17, no. 4, 2018, pp. 1–12, http://www.fe.unpad.ac.id/dokumen/files/9-Islamic-financial-literacy-Full-Cover-SJR.pdf.
Setyowati, Arum, Harmadi Harmadi, and Sunarjanto Sunarjanto, ‘Islamic Financial Literacy and Personal Financial Planning: A Socio-Demographic Study’, Jurnal Keuangan dan Perbankan, vol. 22, no. 1, 2018 [https://doi.org/10.26905/jkdp.v22i1.1625 ].
Sharma, Asha, ‘The Influence of Financial Literacy on the Performance of Small and Medium-Scale Enterprises’, IUP Journal of Accounting Research & Audit Practices, vol. 18, no. 2, 2019, pp. 52–61, https://search.proquest.com/openview/57e00fb944f1c9273ad8bf92921b290c/1?pq-origsite=gscholar&cbl=54439.
Shirazi, Nasim Shah, ‘Integrating Zakat and Waqf into the Poverty Reduction Strategy of the IDB Member Countries’, Islamic Economic Studies, vol. 22, no. 1, 2014, pp. 79–108 [https://doi.org/10.12816/0004131 ].
Wachira, Isaac M. and Evelyne Nyathira Kihiu, ‘Impact of Financial Literacy on Access to Financial Services in Kenya’, International Journal of Business and Social Science, vol. 3, no. 19, 2012, http://hdl.handle.net/123456789/1703.
Wibowo, Kartika A., ‘Transdormation of Islamic Financial Literacy in The Member of BMT in Indonesia Through Community Development MKU Methods’, in Islamic Financial Literacy, First edition, ed. by Abdul Ghafar Ismail, Rose Abdullah, and Khalifah Muhamad Ali, Brunei Darussalam: UNISSA Press University Islam Sultan Sharif Ali, 2016, pp. 319–25.
Zaman, Zunaira et al., ‘Role of Islamic Financial Literacy in the Adoption of Islamic Banking Services: An Empirical Evidence from Lahore, Pakistan’, Journal of Islamic Business and Management (JIBM), vol. 7, no. 2, 2017 [https://doi.org/10.26501/jibm/2017.0702-006 ].
Abdullah, Mohamad Azmi and Alex Anderson, ‘Islamic Financial Literacy among Bankers in Kuala Lumpur’, Journal of Emerging Economies and Islamic Research, vol. 3, no. 2, 2015, pp. 79–94 [https://doi.org/https://doi.org/10.24191/jeeir.v3i2.9061. ].
Ahmad, Nurul Wajhi, Murni Yunus Mawar, and Norazlina Ripain, ‘Financial Literacy of Youth: A Case Study of Islamic Banking and Finance Students in Kolej Universiti Islam Antarabangsa Selangor’, Proceeding of the 3rd International Conference on Management & Muamalah 2016 (3rd ICoMM), 2016.
Aniq, Ahmad Fathan, Zakat Discourse in Indonesia Teachers’ Resistance to Zakat Regional Regulation in East Lombok, First edition, Germany: LAP LAMBERT Academic Publishing, 2011.
Antara, Purnomo M., Rosidah Musa, and Faridah Hassan, ‘Bridging Islamic Financial Literacy and Halal Literacy: The Way Forward in Halal Ecosystem’, Procedia Economics and Finance 37 ( 2016 ), Elsevier B.V, 2016 [https://doi.org/https://doi.org/10.1016/S2212-5671(16)30113-7 ].
----, ‘Conceptualisation and Operationalisation of Islamic Financial Literacy Scale’, Pertanika Journal Social Sciences & Humanities, vol. 25, 2017, pp. 251–60.
Ayuniyyah, Qurroh et al., ‘The Comparison between Consumption and Production-based Zakat Distribution Programs for Poverty Alleviation and Income Inequality Reduction’, International Journal of Zakat, vol. 2, no. 2, 2017, pp. 11–28 [https://doi.org/10.37706/ijaz.v2i2.22 ].
Azha, Latiff et al., ‘The Practice and Management of Waqf Education in Malaysia’, Procedia - Social and Behavioral Sciences, Elsevier B.V, 2013 [https://doi.org/https://doi.org/10.1016/j.sbspro.2013.07.061 ].
BAZNAS, Financial Statement Badan Amil Zakat Nasional, Jakarta, 2019, https://pid.baznas.go.id/wp-content/uploads/2020/06/Laporan-Keuangan-Tahunan-Tahun-2019.pdf.
Bhagwan, Pooja, ‘Empirical Study on Relationship between Financial Inclusion and Financial Literacy and Its Impact on Consumer Financial Behaviour: A Theortical Framework of Unbanked People’, Journal of Commerce & Accounting Research, vol. 8, no. 1, 2019, pp. 61–7, https://search.proquest.com/openview/06b9d7cfb2116c57907dfe441fd27bc4/1?pq-origsite=gscholar&cbl=2030934.
Biplob, Hossain and Md Faruk Abdullah, ‘The Importance of Islamic Financial Literacy for Muslims: A General Review’, Islam and Civilisational Renewal ICR Journal, vol. 10, no. 1, 2019, pp. 106–17, https://icrjournal.org/index.php/icr/article/view/773.
Chalim, Abdul, ‘Pengelolaan wakaf uang di Pondok Modern Tazakka Kota Batang ditinjau dari Panca Jiwa pondok dan Undang-undang nomor 41 tahun 2004 tentang wakaf’, Maulana Malik Ibrahim State Islamic University, 2016, http://etheses.uin-malang.ac.id/5299/.
Hasan, Fahadil Amin Al, ‘Waqf Management in Indonesia Through Asset Based Community Development (ABCD) Approach.’, International Journal of Social Science and Economic Research, vol. 2, no. 8, 2017, pp. 4070–87.
Htay, Sheila Nu Nu, Syed Ahmed Salman, and Soe Myint @.Haji Ilyas, ‘Integrating Zakat, Waqf and Sadaqah: Myint Myat Phu Zin Clinic Model in Myanmar’, Tazkia Islamic Finance and Business Review, vol. 8, no. 2, 2013, pp. 170–86 [https://doi.org/http://dx.doi.org/10.30993/tifbr.v8i2.68 ].
Huston, Sandra J., ‘Measuring Financial Literacy’, The Journal of Consumer Affairs, vol. 44, no. 2, 2010, pp. 296–316 [https://doi.org/https://doi.org/10.1111/j.1745-6606.2010.01170.x ].
Islamic Financial Services Board, Islamic Financial Services Industry Stability Report 2018, Kuala Lumpur, 2018.
Ismail, Rifki, The Indonesian Islamic banking theory and practices : theory and practices, First edition, Depok: Gramata Publishing, 2011.
Ismal, Rifki, Islamic Banking in Indonesia: New Perspectives on Monetary and Financial Issues, First edition, United States: John Wiley & Sons, 2013, https://www.wiley.com/en-us/Islamic+Banking+in+Indonesia%3A+New+Perspectives+on+Monetary+and+Financial+Issues-p-9781118509951.
Kahf, Monzer, ‘Waqf: A Quick Overview, 2’, kahf. net: http://monzer. kahf. com/papers/english/WAQF_A_QUICK_OVERVIEW. pdf., 2015, http://monzer.kahf.com/papers/english/WAQF_A_QUICK_OVERVIEW.pdf.
Kasdi, Abdurrohman, ‘Peran Wakaf Produktif dalam Pengembangan Pendidikan’, QUALITY (Jurnal Pendidikan Islam) STAIN KUDUS, vol. 3, no. 2, 2015, pp. 433–52.
Kasim, M. Arif Budiman and Izzudin Edi Siswanto, ‘Analisis Efektifitas Pendayagunaan Zakah Produktif Pada Program Pemberdayaan Masyarakat di Wilayah Sukabumi (Studi Kasus: Kampoeng Ternak Dompet Dhuafa)’, urnal Ekonomi dan Perbankan Syariah, vol. 2, no. 1, 2014, https://journal.sebi.ac.id/index.php/jeps/article/view/143.
Kementrian Agama R.I., Standarisasi Amil Zakat di Indonesia, Jakarta: Direktorat Pemberdayaan Zakat, 2013, https://bengkulu.kemenag.go.id/file/file/Buku/Standarisasi_Amil_Zakat_di_Indonesia-2013.pdf.
Kinanti, Kamilah, Noviyanti, and Muhammad Hasbi Zaenal, The Role of Zakat to Strengthen The Rural Mustahiq Community Based on Entrepreneurship, no. 2, Jakarta, 2018, http://www.iconzbaznas.com/publications/index.php/pwps/article/view/91.
Lopus, Jane S., Dwi Sulistyorini Amidjono, and Paul W. Grimes, ‘Improving financial literacy of the poor and vulnerable in Indonesia: An empirical analysis’, International Review of Economics Education, vol. 32, 2019, pp. 100–68 [https://doi.org/10.1016/j.iree.2019.100168 ].
Mahamood, Siti Mashitoh and Asmak Ab Rahman, ‘Financing universities through waqf , pious endowment: is it possible?’, Humanomics, vol. 31, no. 4, 2015, pp. 430–53 [https://doi.org/10.1108/H-02-2015-0010 ].
Meera, Ahamed Kameel Myden et al., Islamic Financial System: Principles & Operations, ed. by Asyraf Wajdi Dusuki, Kuala Lumpur: International Shari’ah Research. Academy for Islamic Finance (ISRA), 2011.
Mohamed, Shereen, Abdulaziz Goni, and Shaima Hasan, Islamic Finance Development Report 2018, 2018.
Otoritas Jasa Keuangan, Statistik Perbankan Syariah, Jakarta: Departemen Perizinan dan Informasi Perbankan Republik Indonesia, 2019, https://ojk.go.id/en/kanal/perbankan/data-dan-statistik/statistik-perbankan-syariah/Pages/Sharia-Banking-Statistic---October-2019.aspx.
Pramono, Sigit and Dadang Rohmansyah, ‘Developing Strategic Model of Financial Education Through Islamic Microfinance Program: A Preliminary Study in Indonesia’, in Islamic Financial Literacy, First edition, ed. by Abdul Ghafar Ismail, Rose Abdullah, and Khalifa Muhamed Ali, Brunei Darussalam: UNISSA Press University Islam Sultan Sharif Ali, 2016, pp. 281–9, http://e-ilami.unissa.edu.bn:8080/jspui/handle/123456789/1126.
Rahim, Siti Hafizah Abdul, Rosemaliza Abdul Rashid, and Abu Bakar Hamed, ‘Islamic Financial Literacy and its Determinants among University Students: An Exploratory Factor Analysis’, International Journal of Economics and Financial Issues, vol. 6, no. S7, 2016, https://pdfs.semanticscholar.org/6b45/1f3ebdc65adf6ec98815c55c2ec01d69c3ad.pdf.
Rahman, Sazana Ab, Anas Tajudin, and Ahmad Fadzli Ahmad Tajuddin, ‘Determinant Factors of Islamic Financial Literacy In Malaysia’, American Journal of Humanities and Social Sciences Research (AJHSSR), vol. 2, no. 10, 2018, pp. 125–32,.
Sabri, Mohamad Fazli and Eugene Cheng-Xi Aw, ‘Financial Literacy and Related Outcomes: The Role of Financial Information Sources’, International Journal of Business and Society, vol. 20, no. 1, 2019, pp. 286–98.
Setiawati, Rike et al., ‘Islamic Financial Literacy: Construct Process and Validity’, Academy of Strategic Management Journal, vol. 17, no. 4, 2018, pp. 1–12, http://www.fe.unpad.ac.id/dokumen/files/9-Islamic-financial-literacy-Full-Cover-SJR.pdf.
Setyowati, Arum, Harmadi Harmadi, and Sunarjanto Sunarjanto, ‘Islamic Financial Literacy and Personal Financial Planning: A Socio-Demographic Study’, Jurnal Keuangan dan Perbankan, vol. 22, no. 1, 2018 [https://doi.org/10.26905/jkdp.v22i1.1625 ].
Sharma, Asha, ‘The Influence of Financial Literacy on the Performance of Small and Medium-Scale Enterprises’, IUP Journal of Accounting Research & Audit Practices, vol. 18, no. 2, 2019, pp. 52–61, https://search.proquest.com/openview/57e00fb944f1c9273ad8bf92921b290c/1?pq-origsite=gscholar&cbl=54439.
Shirazi, Nasim Shah, ‘Integrating Zakat and Waqf into the Poverty Reduction Strategy of the IDB Member Countries’, Islamic Economic Studies, vol. 22, no. 1, 2014, pp. 79–108 [https://doi.org/10.12816/0004131 ].
Wachira, Isaac M. and Evelyne Nyathira Kihiu, ‘Impact of Financial Literacy on Access to Financial Services in Kenya’, International Journal of Business and Social Science, vol. 3, no. 19, 2012, http://hdl.handle.net/123456789/1703.
Wibowo, Kartika A., ‘Transdormation of Islamic Financial Literacy in The Member of BMT in Indonesia Through Community Development MKU Methods’, in Islamic Financial Literacy, First edition, ed. by Abdul Ghafar Ismail, Rose Abdullah, and Khalifah Muhamad Ali, Brunei Darussalam: UNISSA Press University Islam Sultan Sharif Ali, 2016, pp. 319–25.
Zaman, Zunaira et al., ‘Role of Islamic Financial Literacy in the Adoption of Islamic Banking Services: An Empirical Evidence from Lahore, Pakistan’, Journal of Islamic Business and Management (JIBM), vol. 7, no. 2, 2017 [https://doi.org/10.26501/jibm/2017.0702-006 ].
