Transforming Cash Waqf for Sustainable Development in Indonesia: A Conceptual Framework

Abstract

Cash waqf has great potential as an Islamic Social Finance instrument to support sustainable socio-economic development. However, its development still faces various challenges because previous research generally discusses literacy, governance, financial innovation, digital integration, and productive use of waqf separately, thus failing to explain how all these elements interact in an integrated transformation process. This study aims to develop a conceptual framework that explains the transformation process of cash waqf into a sustainable development instrument. The study uses a Conceptual Framework Development approach through a critical review, conceptual analysis, and synthesis of literature on cash waqf, Islamic Social Finance, governance, financial innovation, digitalization, and sustainable development. Using Jasser Auda's Systems Approach to Maqasid al-Shariah as a conceptual perspective, this study produces a Five-Stage Cash Waqf Transformation Framework consisting of: (1) literacy and resource mobilization, (2) strengthening governance and institutions, (3) financial innovation and digital integration, (4) productive use of cash waqf, and (5) sustainable development impact. This framework demonstrates that the transformation of cash waqf is an integrated process aimed at realizing benefits and supporting sustainable socio-economic development. The proposed framework is expected to serve as a conceptual reference for empirical research and the development of future cash waqf management policies and practices.

Keywords: Cash Waqf; Islamic Social Finance; Maqasid al-Shariah; Sustainable Development; Conceptual Framework