A Proposed Integrated Temporary Cash Waqf and Salam for Agri-Financing for Rice Farmers in Indonesia

Abstract

The study posits ‘back-to-salam based temporary cash waqf model’ through an instrument to enable Indonesian Waqf Board (BWI) and Indonesian Waqf Funds (TWI) viable for this role. The paper employs qualitative research methodology using literature study to derive proper pedigree. It is against this reason the paper undertakes a theoretical study of the model through the study of the fiqhi and Sharīʿah issues on it. Major findings of the paper show that the model will enable BWI and TWI collectively, a viable source of agri-financing, jobs creation, wealth circulation and alternative to riba yielding loan in Indonesia as well as boosting its agricultural productivities. The model, apart from its agri-financing and wealth circulation, it is also a credit enhancement for cash waqf fund raising, to motivate the donors through the profitability of the salam stage. The previous studies have not explored this model as an instrument to propel potential donors.