Maqasid al-shariah based reconstruction of cash waqf governance by Islamic banks in Indonesia

Ahmad Ridwan; Jaih Mubarok; Ibdalsyah; Qurroh Ayuniyyah

doi:10.21580/jiafr.2026.8.2.32249

Authors

Ahmad Ridwan Universitas Ibn Khaldun Bogor, Bogor, Indonesia
Jaih Mubarok Universitas Ibn Khaldun Bogor, Bogor, Indonesia https://orcid.org/0009-0005-0925-6656
Ibdalsyah Universitas Ibn Khaldun Bogor, Bogor, Indonesia https://orcid.org/0009-0001-1810-4209
Qurroh Ayuniyyah International Islamic University Malaysia, Selangor, Malaysia https://orcid.org/0000-0003-2552-5957

DOI:

https://doi.org/10.21580/jiafr.2026.8.2.32249

Keywords:

Cash waqf, Islamic banks, Islamic social finance, Maqasid al-shariah, Waqf governance

Abstract

Purpose - This study analyzes the opportunities and governance challenges confronting Islamic bank-managed cash waqf in Indonesia and proposes a maqasid al-shariah-based institutional reconstruction model.

Method - A qualitative descriptive design was employed. Data were collected between January and March 2026 through semi-structured interviews with ten informants from Badan Wakaf Indonesia (BWI), Islamic banks, OJK, Bank Indonesia, and Islamic economics scholars, coded in NVivo 12 by two independent coders, and analyzed via Miles and Huberman's interactive model with source, method, and member-checking triangulation.

Result - Existing programs partially align with the five maqasid al-Shariah dimensions, with alignment strongest for hifz al-mal and procedural hifz al-din and weakest for hifz al-nasl, and are constrained by low public literacy, product narrowness, transparency deficits, inadequate nazhir capacity, inter-institutional coordination failures, and the marginal strategic positioning of cash waqf within banks. The proposed reconstruction framework comprises five components: maqasid-anchored governance, innovative product development, public literacy programs, transparent accountability, and multi-stakeholder coordination, operationalized through dimension-specific maqasid indicators.

Implication - Findings are limited to Indonesia's Islamic banking sector; the framework requires longitudinal validation and adaptation for non-bank nazhir and other Muslim-majority contexts.

Originality - This is among the first studies to systematically deploy maqasid al-shariah as a normative reconstruction lens for Islamic bank-managed cash waqf governance in Indonesia.

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