THE URGENT NEED FOR THE ESTABLISHMENT OF WAQF BANK: THE CASE OF INDONESIA

Abstract

Indonesia is crowned as country with enormous Muslim inhabitants in the world which also has a huge potential in improving the welfare of its people through Islamic social finance instruments, especially money waqf. Social funds such as waqf are often ignored due to their non-commercial nature, whereas it has tremendous potential when it productively managed. Indonesia require a better waqf management and one of the solution is to establish a waqf bank. Waqf bank is an institution which is detach from any orientation of economic profit and fully dedicated to social welfare. Yet, a further research is still required to discover a proper waqf bank business entity. This research was engaging a normative juridical research method with analytical descriptive approach. In maximizing the money waqf management in Indonesia, the business entity model which can be established is Sharia Banking, with a focus as a manager of money waqf which is in line with its aim and function carried out in Sharia Banking Law, Sharia Bank also has a social function, one of which as a Sharia Financial Institutions of Money Waqf Recipient.