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What is cash waqf and what are the benefits?

President Joko Widodo launched the national movement of cash waqf (GNWU)

REPUBLIKA.CO.ID. — January 25, 2021 is an important milestone in the development of waqf.

President Joko Widodo launched the National Movement for Cash Waqf, a symbol of state recognition of Islamic social financial instruments, namely waqf in contributing to national development. This momentum is also a sign that cash waqf will enter a new chapter in the national economic system.

Actually, what is cash waqf? The website of the Indonesian Waqf Board (BWI) describes at length the meaning and benefits of cash waqf.

According to BWI, the term waqf money was not known at the time of the Prophet. Waqf money (cash waqf) has only been practiced since the beginning of the second century Hijriyah.

Imam az Zuhri (died 124 H), one of the leading scholars and founders of the tadwin al-hadiths, recommended the dinar and dirham waqf for the construction of means of preaching, social and education for Muslims.

Also read: Din Syamsuddin Invites Waqf Community to Islamic Institutions

In Turkey, in the 15th century AH the practice of waqf money has become a familiar term in society.

Cash waqf usually refers to cash deposits in financial institutions such as banks, where the cash waqf is usually invested in profitable business activities.

The profits from the investment returns are used for anything that is socially and religiously beneficial.

In the 20th century, various ideas emerged to implement various big ideas of Islam in the economic field, various financial institutions were born such as banks, insurance, capital markets, zakat institutions, waqf institutions, haj savings institutions, etc.

Islamic financial institutions have become a familiar term in both the Islamic and non-Islamic world.

Also read: Voices Donate Money Waqf Program Launched by Jokowi

It is in this stage that the ideas of scholars and practitioners are born to make cash waqf one of the bases in building the economy of the people. From various seminars conducted by the Muslim community, the ideas of cash waqf are getting more and more rolling.

Islamic countries in the Middle East, Africa and Southeast Asia started it in various ways.

In Indonesia, before the birth of Law no. 41 of 2004, the Indonesian Ulama Council has issued a fatwa on Cash Waqf (11/5/2002).