Waqf is one of the instruments in Islamic economics that has great potential to support social and economic development. According to data from the Indonesian Waqf Board (BWI), the potential of cash waqf in Indonesia can reach IDR 180 trillion per year. However, the realization is still far from optimal, which in 2023 only managed to reach IDR 2.2 trillion.
In an effort to optimize the potential of cash waqf, the Financial Services Authority (OJK) introduced an innovative product called Cash Wakaf Linked Deposit (CWLD) at the end of October 2023. This innovation is expected to increase the contribution of Islamic banking to Indonesia's economic development by involving various parties, including Sharia Financial Institutions for Cash Waqf Management (LKS-PWU) and cash waqf nazir.
Cash Wakaf Linked Deposit is an Islamic investment product that combines the concepts of waqf and Islamic deposits. This product allows waqifs (people who give waqf) to submit a certain amount of cash waqf in the form of deposits to Islamic banks acting as LKS-PWU. Later, the customer (waqif) will receive profit sharing and the principal value of his deposit at the end of the program. Simply put, when the waqif hands over the cash waqf in the form of Islamic deposits, the cash waqf nazir works with the Islamic bank to determine the waqf beneficiary program (mauquf alaih).
Then, the investment profit from this deposit will be credited to the nazir's special account to be distributed according to the agreement. At the end of the program period, the principal value of the deposit is returned to the waqif, while the waqf benefits are distributed to the needy. The CWLD program is designed to provide benefits not only to the waqif as an investor, but also to the wider community as beneficiaries. It can be used for education programs, health services, underprivileged community assistance, or procurement of assets such as ambulances and worship facilities.
Not only that, OJK strives to increase public participation in waqf through a more modern and transparent mechanism. Also, it accelerates economic development as waqf funds can fund social and economic programs that directly impact the community. The CWLD program is also designed in a transparent and accountable manner. All information related to the program, from the funds collected to the beneficiaries, is presented in a mini prospectus. Thus, the waqif can know the use of waqf funds clearly.
In addition, investing in Cash Wakaf Linked Deposit is made easy. First, choose a trusted Islamic Financial Institution. Make sure the selected Islamic bank has been licensed as an LKS-PWU and offers the CWLD program. Second, understand the terms and conditions. You need to carefully read the terms, conditions, and program descriptions listed in the mini prospectus. Third, determine the purpose of investing, whether you want to support education, health, or economic empowerment programs. Fourth, invest according to your financial capability. Each waqf deposit has a minimum value of IDR 1 million, but keep in mind that Islamic banks can set a higher amount according to their policies.
Furthermore, regularly monitor the progress of investment and distribution of waqf funds through reports provided by Islamic banks. Let's optimize the potential of cash waqf and support the development of Islamic economy in Indonesia by investing through Cash Waqf Linked Deposit. With this small step, we can create a big change for the future of the nation.
