For practical reasons, the cash waqf movement has now emerged. As the name suggests, this waqf is paid with objects in the form of money or securities. What is the law according to the MUI? What are the advantages, and how do you achieve them?
There are many ways to gain rewards and attain the blessing of Allah SWT. One way is through waqf, a form of worship that aims to get as many rewards as possible. By making waqf, a waqf (wakif) will receive rewards that will continue to flow even after he dies.
According to the 2002 Fatwa of the Indonesian Council of Ulama (MUI) concerning Waqf, what is meant by waqf is holding assets that can be used without the objects being lost by not taking legal action against the objects being channelled to something permissible (not haram).
Waqf is also defined as the legal action of a person, group of people, or legal entity who separates part of their property for worship or other public needs per Islamic teachings. According to Islamic teachings, Waqf objects are all movable or immovable objects that have durability beyond single use and value.
Several types of waqf can be carried out by a person, group of people, institutions or legal entities. The objects of waqf can be buildings, land, cash, or high-value securities. The principal value of the money donated must be maintained following the wishes of the wakif and utilized by the recipient by Sharia.
The Main Points of Waqf
There are many advantages contained in waqf. This has been stated in the Word of Allah SWT. and the hadith of the Prophet Muhammad. Allah says, “You will never achieve righteousness until you donate some of what you cherish. And whatever you give is certainly well known to Allah.” (QS. Ali Imran [3]: 92).
In another verse, Allah SWT. said: “The parable of (the income spent by) a person who spends his wealth in the way of Allah is similar to a seed that grows seven spikes, on each spike: a hundred seeds. Allah multiplies (rewards) for whom He wills. And Allah is All-Encompassing (His gifts) and All-Knowing.”
“Those who spend their wealth in the cause of Allah and do not follow their charity with reminders of their generosity or hurtful words—they will get their reward from their Lord, and there will be no fear for them, nor will they grieve.” (QS. al-Baqarah [2]: 261-262).
Hadith of the Prophet PBUH. It was narrated from Abu Hurairah that the Messenger of Allah said, “When a person dies, the (reward) of his deeds is cut off except for three things, namely alms (waqf), the knowledge he uses, or a pious child who prays for him” (HR. Muslim, al-Tirmidhi, al-Nasa’i, and Abu Daud).
“It was narrated from Ibn Umar that Umar bin al-Khathab obtained land (gardens) in Khaibar; then he came to the Prophet to ask for guidance regarding the land. He said, ‘O Messenger of Allah! I acquired land in Khaibar; that I have never obtained a better treasure for me than that land; What are your orders (to me) regarding it?’”
The Prophet SAW answered: “If you want, you keep the principal and you donate (the proceeds).” Ibn Umar said, “So, Umar gave the land in charity, (requiring) that the land not be sold, not given away, and not inherited. He gave charity (the proceeds) to fuqara, relatives, riqab (servants, oppressed people), sabilillah, ibn sabil, and guests. There is no sin on the person who manages it to eat (the produce of) the land in a ma’ruf (reasonable) manner and feed it (to other people) without making it his property.”
The Potential of Cash Waqf
In recent years, a new trend has emerged regarding waqf, namely cash waqf. Cash waqf is a development of the current waqf concept, where waqf associated with immovable assets (land and buildings) becomes movable or cash assets in the form of money.
In Indonesia, waqf is often practised in the form of money, and there are laws and regulations. In fact, on January 25, 2021, President Joko Widodo launched the National Cash Waqf Movement (GNWU).
The government’s support for cash waqf is also proven through the launch of the Cash Waqf Linked Sukuk (CWLS) program, which places waqf funds in State Sharia Securities (SBSN). The distribution is used to finance social programs and economic empowerment of the community.
The MUI also formed the Indonesian Council of Ulama Waqf Institution (LWMUI) as the nazhir of cash and asset waqf. The Indonesian Waqf Board (BWI) registered and licensed this institution. LWMUI was established on May 23, 2018 based on the Decree of the MUI Leadership Council Number: Kep-720/DP-MUI/2018.
Secretary General of the Indonesian Council of Ulama (MUI), Dr. Amirsyah Tambunan said that the potential for waqf in Indonesia is enormous. Citing data from the Indonesian Waqf Board (BWI), Amirsyah noted that there is a potential for waqf assets of IDR 2,000 trillion, where the potential for cash waqf is IDR 188 trillion, and 420 thousand hectares of land.
From this enormous amount, according to Amirsyah, the waqf movement in Indonesia has yet to be optimal. There are a number of reasons why the waqf movement in Indonesia still needs to be higher.
First, because waqf literacy still needs to improve. Second, the waqf program still needs to be more innovative and creative. Third, there needs to be a strategic collaboration in optimizing the potential of social funds such as corporate social responsibility programs or Corporate Social Responsibility (CSR) into waqf programs.
BWI Administrator Bambang Pamungkas, as quoted by koran.pikiran-rakyat.com, revealed that currently, the realization of waqf is IDR 1 trillion. However, this figure continues to grow every year, although the percentage of waqf realization from the total nazir (person in charge of managing waqf) of the potential still needs to be more significant. “There needs to be an increase in waqf literacy in order to increase the realization rate,” he said.
MUI Fatwa on Cash Waqf
Amirsyah Tambunan added that in order to continue to increase community participation in the waqf program, MUI continues to carry out various programs in accordance with MUI’s strategic role. First, strengthening MUI’s da’wah regarding waqf, especially cash waqf and productive waqf.
Second, increasing literacy and socialization of waqf to various groups through provincial level administrators to district and even sub-district administrators; and third, strengthening the position of the MUI Waqf Institution as a role model for managing cash waqf and productive waqf in Indonesia.
The strategic role of MUI has an increasingly strong foundation because MUI has issued Fatwa Number 2 of 2002 concerning Cash Waqf as a guide. The fatwa emphasizes several things as follows:
- Cash Waqf (Cash Waqf/Waqf al-Nuqud) is a waqf carried out by an individual, group of people, institution or legal entity in the form of cash.
- Included in the definition of money are securities.
- Cash Waqf is permissible.
- Cash Waqf may only be distributed and used for things that are permissible according to Sharia.
- The principal value of Cash Waqf must be guaranteed for its sustainability; it may not be sold, donated, and/or inherited.
The programs carried out by LWMUI include a modern vaname shrimp farming pond covering an area of 5 hectares and HALAL UMKM HOUSE as a center for the development, marketing, promotion, and packaging of halal UMKM products. Further information regarding the LWMUI program can be accessed at https://wakafmui.org/. (***)
