Waqf, Sharia Instruments Protected By Law: Transfer Of Functions Means Against The Law

Illustration (Photo: By Courtesy)

JAKARTA - Director of the Indonesian Waqf Consulting and Planning Bureau Roy Renwarin said that waqf is a sharia financial instrument that has the main function and purpose for social interests.

"Because the goal is a social aspect, the transfer of the function of waqf to an inappropriate activity is an act that violates the rules," he said in the webinar of Cash Waqf as a Source of Program Funding and Endowments, Friday, April 30.

Therefore, he said, waqf is fully protected by the laws in force in Indonesia.

"So if someone shifts the function of waqf, we can be sure that there is a legal threat waiting," he said.

Roy added that waqf also contributes to economic development and the Islamic financial ecosystem. According to him, currently the government is getting serious about creating supporting elements for the sharia economy, including coordination of policy makers, regulatory support and incentives to develop the halal industry.

"Apart from having religious benefits, waqf can also be an investment instrument that brings benefits and benefits in the form of certain returns. The more people who participate in the waqf, the aspirations of forming an endowment fund for the ummah will become more real, "he explained.

For information, Law Number 41 of 2004 concerning Waqf states that the purpose of waqf is to utilize waqf property according to its function.

Waqf has a function to realize the potential and economic benefits of waqf property for the benefit of worship and to advance public welfare.

Meanwhile, the party that gives waqf for their property is called waqf. The recipient of the Waqf is called Nazhir. Nazhir is the party who receives waqf property from wakif to be managed and developed according to its allocation.

Based on data from the National Zakat Agency (Baznas), as of 2020, the total funds for zakat, infaq, alms and waqf (Ziswaf) are estimated to reach IDR 12.5 trillion. This figure grew from the amount per 2019 which was in the position of IDR 10.6 trillion.

This year, the amount is estimated to increase to IDR 19.77 trillion. Although the collection continues to increase every year, the accumulated amount of Ziswaf is insignificant compared to its potential which reaches IDR 327 trillion.