Publication:
The role of cash waqf linked sukuk in supporting the halal industry during pandemic recovery: MSMEs case in Indonesia
Abstract
In Indonesia, one of industries affected by the COVID-19 pandemic is the halal industry, which is dominated by Micro, Small and Medium Enterprises (MSMEs). The position of MSMEs in the national economy is important and strategic because MSMEs are the largest contributor to Indonesian GDP. One of the efforts to overcome the crisis is to use instruments in Islamic social finance. According to Indonesia Waqf Board (BWI), Indonesia has potential for cash waqf, however the realization was much smaller. To resolve the issue, cash waqf linked sukuk (CWLS) is believed to be a potential financing source of Indonesia development. The study explores the possibility of utilizing CWLS return to support Indonesian MSMEs in the halal industry and provide recommendation for improving current CWLS. This is a qualitative study that employs interview and literature review. It is found that there are three main obstacles in CWLS implementation: low literacy of waqf, the lack of promotion from nazir, and the low level of public trust in cash waqf. The researcher proposes three models of CWLS return utilization for Halal industry in Indonesia namely charity model, qard al-hasan model and mudharabah model.
Keywords
Halal industry , Cash waqf linked sukuk , Micro, Small and Medium Enterprises (MSMEs) , Pandemic recovery , COVID-19 , Indonesia , Project paper (eMIF)
Citation
Putra, R. H. (2023). The role of cash waqf linked sukuk in supporting the halal industry during pandemic recovery: MSMEs case in Indonesia (Master dissertation). INCEIF, Kuala Lumpur. Retrieved from https://ikr.inceif.org/handle/INCEIF/3936
Publisher
INCEIF
Available in PDF format. Kindly email to kmc@inceif.edu.my to access the item