Legal Issue of Cash WAQF Institution in Indonesia and the Legal Solution

Abstract

The community's money waqf practice does not align with the law's mandate, as it does not transfer funds to Islamic Financial Institutions, also known as Cash Waqf Recipients. The study focuses on the institutional issue of money waqf law in Indonesia and its potential legal remedies. The type of field research and the approach are empirical and juridical. The results showed that the institutional problem of cash waqf law, namely the performance of Islamic Financial Institution Waqf Recipients and Indonesian Waqf Institutions, has not been optimal. In reality, the majority of people do not have money endowments in the Islamic Financial Institution Waqf Recipient, but instead have cash endowments with Nadzir. The reason is that the people are unfamiliar with Islamic Financial Institution-Cash Waqf Recipient and do not understand the existence of money endowments. Furthermore, the lack of coordination between the Islamic Financial Institution-Cash Waqf Recipient and the Indonesian Waqf Institution has made it challenging to control and evaluate the money endowments transferred from the Indonesian Waqf Institution to the Islamic Financial Institution-Cash Waqf Recipient. The legal solution involves optimizing the performance of both Indonesian Waqf Institutions and Islamic Financial Institution-Cash Waqf Recipients as money waqf legal institutions. This includes socializing the money waqf law in the community to increase trust and interest in public money endowments at the Islamic Financial Institution-Cash Waqf Recipient, thereby enabling the enforcement of money waqf law more effectively in Indonesia.