An Analysis of Cash Waqf Linked Sukuk for Socially Impactful Sustainable Projects in Indonesia


  • Najim Nur Fauziah IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia
  • Engku Rabiah Adawiah Engku Ali IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia
  • Alliqa Alvierra binti Md Bashir IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia
  • Asmaou Mohamed Bacha IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia



Sukuk is crowned as one of the most important instruments for raising funds, be it at the government of corporate level. In Indonesia, sukuk was first introduced in 2002. Sukuk market development was said to have contributed to the increase of GDP in Indonesia due to the improved productivity facilitated by better access to funds. Of late, a number of innovative Islamic finance products in line with Shariah principles had been introduced to the market with the aim to fulfil the diversified needs in the society. The idea is to combine two or more Islamic finance products in one for a better outcome. The case of Cash Waqf Linked Sukuk (CWLS) which are Islamic bonds (“Sukuk”) linked to an endowment (“Waqf”), is part of the development and innovation efforts in Islamic finance and social investment in Indonesia. When an important instrument like sukuk is coupled with a powerful Islamic social finance instrument, i.e., waqf, the combination can potentially be very impactful. Sukuk is an instrument for mobilizing funds, while waqf has the capacity to bridge charity and philanthropy with income generation and productive economic activities. Using a qualitative research based on explanatory and descriptive method, this paper analyses the practice of CWLS and its potential for socially impactful and sustainable projects in Indonesia, and to identify the benefits, opportunities, costs and risks of CWLS. The study found that CWLS can significantly contribute to social impact, as well as facilitate many sustainable development programs including government projects, education and healthcare initiatives and others. CWLS is believed to be a highly potential instrument with a positive impact on the society in Indonesia because of its benefits and opportunities are more considerable than its risks and costs.


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How to Cite

Najim Nur Fauziah, Engku Rabiah Adawiah Engku Ali, Alliqa Alvierra binti Md Bashir, & Asmaou Mohamed Bacha. (2021). An Analysis of Cash Waqf Linked Sukuk for Socially Impactful Sustainable Projects in Indonesia. Journal of Islamic Finance, 10, 001 –.




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