Developing cash waqf models for Baitul Maal wat Tamwil as integrated Islamic social and commercial microfinance

Ascarya Ascarya, Raditya Sukmana, Siti Rahmawati, Atika Rukminastiti Masrifah

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)


Purpose: This study aims to develop cash waqf models for Baitul Maal wat Tamwil (BMT), a special Islamic microfinance institution in Indonesia, combining Islamic social finance in Baitul Maal (house of wealth) division and Islamic commercial finance in Baitut Tamwil (house of asset development) division, as integrated Islamic social and commercial microfinance in Indonesia, to achieve triple bottom-line, including outreach, sustainability and welfare impact. Design/methodology/approach: This study uses Delphi and analytic network process methods, with three groups of relevant respondents, including experts (academic), BMT practitioners and regulators. Findings: The results show that the best cash waqf model for BMT is “BMT as Nazir (waqf manager) and also as cash waqf receiver Lembaga Keuangan Syariah Penerima Wakaf Uang (LKSPWU)”, followed by “BMT Association as representative Nazir of several certified BMTs”. Moreover, “long-term investment deposit” is the best to account cash waqf in the BMT balance sheet. With regard to financing, the most preferred one is “financing to regular Micro and Small Enterprises” of BMT members. Research limitations/implications: Having allowed BMT to be Nazir (waqf manager), this research might only benefit Indonesian policymakers, such as the Financial Services Authority and the Ministry of Cooperatives, BMTs and the National Waqf Board. But it may also benefit other countries which have similar characteristics. Practical implications: BMTs could adopt several alternatives of best models in managing cash waqf most appropriate for their specific conditions. Social implications: The management of cash waqf by BMT could help the social activities of the Baitul Maal through social cash waqf and, indirectly, by productive cash waqf. Originality/value: Studies have been limited, and to the best of the authors’ knowledge, there is no specific study discussing the integrated cash waqf model, cash waqf account and cash waqf investment appropriate for BMT.

Original languageEnglish
Pages (from-to)699-717
Number of pages19
JournalJournal of Islamic Accounting and Business Research
Issue number5
Publication statusPublished - 6 Jun 2023


  • BMT
  • Cash waqf
  • IMFI
  • Islamic cooperatives
  • Islamic microfinance
  • Waqf


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