THE EMPOWERMENT OF PRODUCTIVE WAQF IN EGYPTIAN AL …€¦ · example, the waqf of agricultural land in Egypt covers one-third of the total agricultural land existing in the early

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International Journal of Mechanical Engineering and Technology (IJMET)

Volume 9, Issue 11, November 2018, pp. 1839–1851, Article ID: IJMET_09_11_191

Available online at http://www.iaeme.com/ijmet/issues.asp?JType=IJMET&VType=9&IType=11

ISSN Print: 0976-6340 and ISSN Online: 0976-6359

© IAEME Publication Scopus Indexed

THE EMPOWERMENT OF PRODUCTIVE

WAQF IN EGYPTIAN AL-AZHAR AND ITS

RELEVANCE TO BE IMPLEMENTED IN

INDONESIA

Abdurrohman Kasdi

State Islamic Institute (IAIN Kudus) Central Java, Indonesia

ABSTRACT

The paper aims at revealing the role of productive waqf as an alternative solution

in the development of Islamic education in Egyptian al-Azhar and its relevance to be

implemented in Indonesia. This study used a qualitative research method with the

phenomenological approach. The results of this research indicate that waqf managed

productively can play a role and become an alternative solution in the development of

Islamic education in al-Azhar. The use of Al-Azhar's productive waqf fund consists of

supporting education operational cost in al-Azhar; providing welfare to teachers,

lecturers, and other education personnel; financing the construction and maintenance

of educational facilities of al-Azhar, such as school buildings and lecture buildings,

student dormitories, libraries, laboratories; and improving the quality of human

resources. As an old institution that has stood thousands of years ago, al-Azhar has

handled the educational institutions from madrassas (ma'had) to university. The

management of productive waqf for education makes Al-Azhar able to develop more

than just a university, covering the fields of religion, education, da'wa, and social.

With its long history and such relatively complete institutions, al-Azhar plays an

important role in the Muslim world. The utilization of waqf productive in al-Azhar can

be applied in Indonesia by facilitating scholars and students through adequate

facilities and infrastructure. There are many programs funded by Awqaf such as book

writing, translation, and scientific activities in various fields. Waqf does not only

support the development of education but also provides the various facilities that

society need such as hospitals and business centers.

Keywords: Management, Productive Waqf, Empowerment, Education.

The Empowerment of Productive WAQF In Egyptian Al-Azhar and Its Relevance To Be Implemented

In Indonesia


Cite this Article: Abdurrohman Kasdi, The Empowerment of Productive WAQF In

Egyptian Al-Azhar and Its Relevance To Be Implemented In Indonesia, International

Journal of Mechanical Engineering and Technology, 9(11), 2018, pp. 1839–1851.

http://www.iaeme.com/IJMET/issues.asp?JType=IJMET&VType=9&IType=11

1. INTRODUCTION

Muslims have found a new face emerging from waqf, in the form of the establishment of a

productive waqf institution for economic development and having a service orientation to the

society. It shows the importance of empowering productive property, which aims to achieve

social justice and improve the people 's welfare.

In Islamic history, waqf has always been growing and growing to the present day (Qahaf,

2006: 19). The requirement to maintain the continuity of waqf is to establish the activities by

setting aside the productive property of Muslims, which is part of the sensitivity of religious

life. In this case, the scholars agree that among the results of endowments (waqf) must be set

aside for caring and capital safekeeping, although there are no orders and terms of waqif. It

means that the person or institution that becomes nazir over the waqf must maintain the

capital integrity of the waqf, as its condition when the waqif submitted the waqf, and also

preserve its production in the future.

Experiments in practicing productive waqf have come to some basic principles that exist

in Islamic waqf system, since the Prophet Muhammad Saw. advised Umar bin al-Khattab Ra.

to give his land in Khaibar for the poor, as he said to Umar Ra., "If you will, then bear the

capital and donate it to the poor" (Al-Bukhari, 2001: 2737; Muslim, 2000: 1632).

There is no doubt that waqf in the history of Islamic civilization, has been a supporting

pillar for the establishment of religious institutions of Muslim societies for centuries through

the provision of funds and support facilities for religious activities, educational and health

(Qomariah, 2017: 178). Moreover, the waqf at that time had performed significant social

functions by providing public facilities, such as roads, bridges, drinking water, urban parks,

public baths, and so on. Waqf has supported several social justice, education and health

initiatives, as well as other goals that are in line with the welfare paradigm that is also part of

the orientation of the Maqashid ash-Shari’a (Najib & al-Makassary (ed.), 2006: 9).

The wide-spreading empowerment of waqf property becomes important, especially if it is

related to the concept of the development of productive waqf aimed at achieving social justice

and improving people’s welfare. Hence, the productive waqf has two visions at once;

destroying a lame social structure and providing fertile ground for the welfare of the people.

This vision is a derivation of the philosophy of the recommended waqf that emphasizes the

empowerment of waqf potential, so that waqf does not only in faith dimension but also pro-

humanity. It is the waqf that touches the reality of people in poverty, ignorance, and

backwardness (Sabri, 2008: 489–491).

This social waqf practice has lasted as long as the history of Islam, even its form and

purpose has grown rapidly. In this condition, the property of waqf rises more and spreads in

all Muslim-majority countries that can spur the number of national economic growth. For

example, the waqf of agricultural land in Egypt covers one-third of the total agricultural land

existing in the early 19th century. So does the urban waqf in the form of buildings, trade

centers, hospitals, and educational institutions.

One of the most productive uses of productive donations is the empowerment of

productive waqf for educational development. One of the educational institutions that have

implemented this empowerment model among others is al-Azhar. Al-Azhar is an educational

institution that capable to finance its educational operations for centuries without being

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Abdurrohman Kasdi


dependent on the government nor the payment of its teachers and students. Al-Azhar is even

able to provide scholarships to hundreds of thousands of students from all over the world for

centuries. The question arises, how can al-Azhar be great, be able to survive for centuries, and

provide scholarships to millions of students from all over the world for centuries? This

question arises because al-Azhar is not a full profit-oriented institution.

Al-Azhar gets bigger and develop because it lies in its large waqf. Al-Azhar which is more

than a thousand years old was able to become a pioneer of education in the Islamic world

through the waqf. The waqf in al-Azhar consists of palm gardens which cover thousands of

hectares, apartment buildings and rented every year that make a lot of profits, so waqf is a

source of productive funds that never dry up. The results of the productive waqf can be used

to provide scholarships, hire employees and lecturers, and finance preachers abroad. The

greatness of al-Azhar and its success in managing the productive waqf for this education, has

inspired the birth of the Educational Waqf Board in Indonesia.

The research would like to answer some of the issues: How is the role of Al-Azhar's

productive endowments (waqf) in developing the education? What institutions in al-Azhar are

financed by the productive waqf and where is the significance of productive waqf property in

these institutions? How is the model of empowering productive waqf in al-Azhar?

2. THEORETICAL FRAMEWORK

Among the social problems of society and the demands of economic prosperity in recent

years, the existence of waqf institutions has become very strategic. Besides as one aspect of

Islamic teachings that have spiritual dimension because of the element shadaqah jariyah, waqf

is also a teaching that emphasizes on the importance of economic prosperity and social

dimension. Therefore, it is necessary to reconceptualize of waqf to give the meaning and

reach more relevant to the real condition faced by the society (Qahaf, 2006: 58).

Waqf has been a supporting pillar for the upholding of the socio-religious institutions of

Muslim society for centuries. It is done through the provision of funds and supporting

facilities for religious activities, education, science development, art, and culture. Even if it is

managed productively, waqf will be able to carry out more functions, such as the provision of

public facilities, such as roads, bridges, drinking water, urban parks, public baths, and so on.

The objectives of this waqf are in line with the paradigm of welfare that is the orientation of

the Islamic Shari’a.

The achievement of the above objectives needs a strategy in the development of

productive waqf. Because during this time waqf has not played a significant role in realizing

the welfare, ummah welfare, and social justice. There is often a slogan that waqf can be

empowered to overcome the problem of poverty, underdevelopment, bad nutrition, and so on.

But there is no clear conceptual framework on how waqf can be developed to be an effective

instrument for the social change in a direction that further assures the welfare and the justice.

Abdullah Ahmed an-Na'im proposed the transformation and re-examination of waqf

traditions, to develop the socio-economic communities, encourage the fulfillment of human

rights, fair political administrations, and ensure the autonomy of societies.

In addition to the above proposals, there are several strategies in the development of

productive waqf, they are: the reinterpretation of waqf concept, development model of

productive waqf, regulation of waqf law, the publishing of waqf certificate of money, and

fundraising strategy of productive waqf. There are three basic things in the implementation of

the development of this productive waqf: First, The fulfillment of the primary needs of the

community such as food, shelter, education, health and so on. Second, seeking to increase the

equal opportunities for everyone, especially for those who are most disadvantaged in society,


In Indonesia


third, making the structural changes including the changes in the system and the social

institutions that guarantee the people’s welfare (Najib & al-Makassary (ed.), 2006: 22).

Said and Lim (2005: 6–7) conducted the research on the strategy for the development of

productive waqf. There are 5 (five) strategic steps to empower waqf to become the productive

waqf: First, recognizing the potential of waqf wealth management by looking at the history or

the waqf model that has been running and doing updates on waqf systems; Second, facilitating

the development of modern waqf model by applying modern management techniques to

waqfs, as long as its objectives are not contradictory to the principles of shari'a; Third,

promoting the Islamic philanthropy through waqf, so that it can be the backbone of the

community and potentially plays an important role in the service of society. The productive

waqf also can be an alternative in times of crisis when the government is no longer able to

meet the needs of the community; Fourth, modernizing the administration of waqf, so that the

waqf management structure can be more efficient, transparent and responsive as well as

establishing the technical cooperation and the exchange experiences with educational

institutions, international organizations and other countries to develop the waqf investment;

Fifth, produces previously the unproductive waqf by generating commitment from waqif,

nazir, investors and the surrounding community who know the benefits of the waqf.

A survey conducted by the Language and Culture Centre of State Islamic University

(Universitas Islam Negeri/ UIN) Jakarta shows that the majority of waqf is used for

educational development (65%). The magnitude of the waqf role for education is not

separated from the history of Islamic civilization built on the foundation of waqf. The role of

waqf in the development of education, in Islamic history, can be traced clearly from 29th

of

Jumadil Ula 359 H (970 AD), with the establishment of al-Azhar in Egypt. This institution is

enlarging and growing because it lies on its very large waqf, and its results are utilized for

education.

In the 5th / 11th century AD, the role of waqf became more apparent when the madrasah

become an independent institution that separated from the mosque. It has happened when a

wazir (minister) of the Seljuks named Nizam al-Mulk in 458 H (1065 AD) built a madrassa in

Baghdad called Nizamiyah madrassa with a waqf fund. He also founded madrassas in the

several cities in Iraq and Khurasan, such as Balakh, Nisapur, Harran, Isfahan, Basrah, Marwa,

Amal Tibrisan and Mausil. These madrassas then built the networks and inspired the

establishment of other madrasas in the Arabian Peninsula, Turkey, Iraq, in Persia and Egypt.

Even according to Mielli, madrassa Nizamiya has inspired the founding of modern schools

and universities in Europe (Mielli, 1962: 179).

The role of waqf was more effective a century later when the fiqh scholars of the 6th/12th

century CE studied the role of waqf and encouraged the benefactors to give up their wealth.

After that, there was an important development in the waqf, when Nuruddin az-Zanki and

Salahuddin al-Ayyubi received a fatwa from a famous fiqh scholar, Ibn Abi ‘Asrun (482-585

H/1088-1188 CE) which suggests that condoning the bait al-mal for the social benefit such as

the construction of a legal madrassa is allowed. It based on the argument that the land of bait

al-mal is used in goodness (Abu Zahrah, 2004: 113). This fatwa had a positive impact on the

development of education in the state of Sham and Egypt during the reign of az-Zanki and al-

Ayyubi, due to government support for the establishment of educational networks.

Nuruddin az-Zanki pioneered the founding of the madrassa Dar al-Hadis an-Nuriyyah in

Damascus funded from the waqf in 491 H (1097 AD) commented by Ibn Habir (d. 614 H)

when he visited it as the best madrassa in the world. Then other madrassas began to be built

in other Sham cities: Himesh, Himah, Ba’labak, and Halab (Adzim, 2006: 182–184). With the

advent of the madrassa system, the Islamic education system is entering a new chapter in its

growth and development. It is where the madrassa (school) has become one of the official

Abdurrohman Kasdi


state institutions, where teachers and employees are appointed by the state and paid from the

state treasury. Likewise, alumni from this madrassas are accepted and promoted in strategic

positions within state institutions (Langgulung, 2003: 110–111).

Salahuddin al-Ayyubi also built madrassas in Egypt, such as madrassa Nasiriyah and

Qumhiyah. During the Mamluk period, the role of waqf continued in the development of

education. When Ibn Batutah (1304-1377 AD) came to Egypt, he said that there are many

madrassas in Egypt. Likewise, Ibn Khaldun (1332-1406 AD), he praised the development of

scholarship which grew thanks to the role of waqf which had begun since the time of

Salahuddin al-Ayyubi.

Salahuddin is the founder of madrassas after Nizam al-Mulk. It is due to the passion

inherited by Salahuddin, the activities held and the positions of these madrassas that are very

strategic in developing the Islamic education system. In addition to its existence in the

important countries of the day (ie in Syria, Palestine, and Egypt), the role of these madrassas

in spreading the teachings of Islam is also very significant.

The sultans who governed Egypt continued this Salahuddin policy by establishing the

Islamic educational institution, appointing teachers of the mazhab (religious sect) Hanafi,

Maliki, Shafii and Hanbali that taught the Qur’an, hadis, tafseer, science, jurisprudence, and

other religious sciences. The Sultan gave the salaries to the teachers and the scholarships to

the students who wanted to study with the teachers. In addition to the salary, they also got the

food every day in the form of bread, and clothes every month of Ramadan. The Sultan also

established the libraries and raised the librarians to maintain these libraries, and served the

teachers and the students who wanted to read or borrow from the library books (Al-Jundi,

1964: 241–245).

At the time of the Dynasty Usmani, the development of education supported by waqf

funds was even greater. The dynasty of Usmaniya took this role until the middle of the ninth

century of Hijriyah, by establishing Wizarah li al-Ma‘arif (Ministry of Education) for the first

time and building some of the madrassas. In addition to the seriousness of handling waqf in

the literature also contributes to the development of education. It is deemed necessary because

of the expensive manuscript of the book. An example is the construction of a public library

founded by Ibn al-Munjim, as also established by Ibn Kallis one of the viziers (ministers)

during the reign of Dynasty of Fatimiya in Egypt.

Since the 9th / 15th century AD in the area of Balkans, there was a public library

containing hundreds of Arabic manuscripts such as Isa Bik’s library in Sekubiyah and the al-

Gazikhasru madrasah library in Sarajevo. A few centuries later this library became a great

library in Europe, containing Arab, Turkish and Persian manuscripts.

In the 19th century, Beirut’s clerics founded Jam‘iyyah al-Maqasid al-Khairiyah al-

Islamiyah, an educational institution standing on waqf land to stem the influence of Christian

missionary schools in Lebanon. In addition to the roles above, the purpose of the

establishment of this institution is to open up insights and encourage the rise of the Muslims.

The development of waqf had been stagnant for several centuries up to the beginning of

the 20th century, and after that Turkey began to re-implement the waqf management (1925-

1926 AD). The impact of this improvement is the establishment of Mudiriyah al-Awqaf (Waqf

Bank) which serves to invest the property of waqf. Similarly, in 1975 AD Waqaf ad-Diyanah

foundation which was involved in the development of religious education was established in

Turkey.

The operational cost of the religious education is derived from the profit resulted from

waqf. Then they were distributed for the scholarships for 15,000 students, the distribution of

millions of books for people who went out of custody, Turkish soldiers and Muslim European


In Indonesia


emigrants, even some of this waqf were shared to Muslim students all over the world. The

waqf’s profit is also allocated for Islamic encyclopedia-making projects, starting from

November 1988 to 2000 summarized in 10 large volumes (al-Arna’ut, 2000: 90–91).

The utilization of waqf results in the development of education in Egypt is also no less left

behind. The Egyptian government’s policy of waqf empowerment in the 1960s has been

rapidly evolving. It began when the Egyptian Department of Reconciliation took part in

investing the establishment of Islamic banks such as Bank Faisal and others, by planting

millions of property in banks or factories such as sugar mills and others. Then the results are

donated to the development of education, such as providing the scholarships for Muslim

students, translation projects of the Qur’an into various languages, publishing the Islamic

books, and other educational purposes.

The development and the empowerment of waqf for such education are also growing in

other Islamic countries. The benefits are enormous for the advancement of education, science,

and other fields. In Indonesia, the success of waqf institution in developing education has

inspired the birth of Waqf Board of Education in Indonesia.

3. RESEARCH METHOD

This research uses the qualitative method with the phenomenological approach in

understanding the empowerment of productive waqf (endowment) model in al-Azhar for

education and its relevance to be applied in Indonesia. This method aims to explain the

phenomena found in the field can be interpreted their contents, meanings, and essence more

deeply (Muhajir, 1994: 13).

This research is held in al-Azhar asy-Syarif Cairo, Egypt, because this institution has been

successfully applying the productive waqf empowerment to develop the educational field. The

analysis process is done after the data collection process, by performing various reflection

techniques for deepening and stabilizing the data. Each data obtained is always viewed in

term of the problem formulation and research objectives. The data analysis model used is an

interactive analysis model of Miles and Huberman. The main stages of the data analysis in

this model include: data collection, data reduction, data presentation, conclusions drawing and

verification (Miles & Huberman, 2000: 21).

4. THE MANAGEMENT OF AL-AZHAR PRODUCTIVE WAQF

The first creator of waqf for al-Azhar was Caliph al-Hakim ibn Amrillah from Dynasty of

Fatimiyya, followed by subsequent caliphs and rich local people and the whole Islamic world

to this day (Yunus et.al, 2007: 172). Waqf activities are encouraged to provide maximum

service to every group within al-Azhar. Abdurrahman Katakhda (1742 AD), one of the

Caliphs of Usmaniya Dynasty pumped exemplary for the rulers and philanthropists to give

waqf to al-Azhar. They are competing to provide the best donations and services to develop

education in al-Azhar.

The tradition of giving waqf to al-Azhar became the key to the preservation of this Islamic

educational institution. The waqf treasures were produced and once accounted for one-third of

the wealth of Egypt in the early nineteenth century. It is from this treasure that the wheels of

al-Azhar's journey can continue to spin, including providing scholarships, dormitories, hiring

teachers, lecturers and employees, as well as sending al-Azhar messengers to various parts of

the world. Even with the productive waqf wealth, al-Azhar could set up branches of

madrassas and universities in several Egyptian provinces outside Cairo.

The result of waqf is obtained from the management of waqf property in a productive

manner, whether immovable property such as land, apartment, residential area, hospital

Abdurrohman Kasdi


building, university, or movable property such as vehicles, books, and other facilities. The

result of other endowments is the financial benefit of business units and hospitals established

by al-Azhar. Part of the waqf proceeds is used to finance the needs of offices associated with

waqf, to finance the operations of al-Azhar, as well as to finance academic development

programs and improvement of the al-Azhar education system.

According to Dr. Abdul Aziz Kamil, the former Minister of Waqf and Egypt's Al-Azhar

Affairs, al-Azhar's journey starts with a mosque and ruwaq (a simple dormitory for students).

It becomes greater because of the many treasures of waqf that cannot be separated from the

role of Muslims. It is the Muslim people who donate their funds through charitable deeds,

including waqf, whether money, property, land, or building. Of course, al-Azhar succeeded

not only because of the generosity of the donors but also because of his expertise in managing

waqf funds. According to him, the waqf funds managed by al-Azhar reach one-third of

Egypt's wealth. With the waqf funds, al-Azhar can have many hospitals, provide business

capital, send dai and lecturers around the world, and publish the weekly newspaper Saut al-

Azhar (http://www.bwi.or.id, 2017).

The use of Al-Azhar's productive waqf fund for education consists of: First, supporting

educational cost in al-Azhar; Second, providing the welfare to teachers, lecturers and other

education personnel; Third, financing the construction and maintenance of educational

facilities of al-Azhar, such as school buildings and lecture buildings, libraries, and research

laboratories; Fourth, the construction of supporting facilities; Fifth, improving the quality of

human resources by conducting training of teachers, lecturers and other education personnel

that lead to the aspects of quality improvement and human resource excellence al-Azhar.

Moreover, the availability of funds from the management of waqf for education also can be

used as a potential source for the development of culture, research climate, and support the

projects of appropriate technology research.

The potential development of educational institutions funded by the productive waqf in al-

Azhar is very large. Al-Azhar handles the educational institutions from madrassas (ma'had)

to university. The Institution of Primary and Secondary Education (al-Ma'ahid al-Azhariyyah)

administered by al-Azhar is available in every district in Egypt by managing a total of about

500,000 students scattered in some madrassas of al-Azhar.

While the institutional structure of ma'had al-Azhar consists of : 1) Al-Ma'ahid al-

Ibtidaiyyah (MI) taken by the students for six years; 2) Al-Ma'ahid al-I'dadiyah (MTs) taken

by the students for three years, 3) Al-Ma'ahid ats-Tsanawiyyah (MA) completed for four

years (now shortened to three years) and students who are able to complete this degree is

entitled to proceed to one of the faculties at al-Azhar University or other universities

throughout Egypt; 4) Al-Ma'ahid al-Qira'ah educational institutions to enhance skills and

knowledge of tajwid, as well as knowledge about qira'ah (Qur'anic reading) in order to

distinguish which qira'ah mutawatirah (frequent reading) and which qira'ah syadzah

(ambiguous reading), but also knowing the ins and outs of Qur'anic recitations, the aspects of

the transmission of the Qur'an and the disciplines relating to the Qur'anic matters; and 5) Al-

Ma'ahid al-Mu'allimin al-Azhariyah (School of Prospective Teachers). This ma'had is

devoted to the students who from the beginning want to become a professional teacher.

As for the university, al-Azhar manages 1 center university in Cairo and 11 branch

universities spread across 11 provinces (Zaqaziq, Dimyath, Qana, Asyuth, Mannurah, Suhag,

and Alexandria). Al-Azhar University manages about 400,000 students of undrgraduate

programs, 10,000 students of graduate programs and approximately 1,000 students of doctoral

program, which is supported by 11,000 lecturers with an average qualification of Professors

and Doctors, and is served by 13,000 employees spread in 62 faculties that exist within the

University of al-Azhar (Fadhil, 2009).


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The allocation for salaries and scholarships is set up one-third of al-Azhar's education

budget, as al-Azhar also allocates the budgets for human resource development and quality of

learning by funding pieces of training, funding lecturers, and teachers in conducting the

research, academic writing, translation and continuing studies free of charge both at al-Azhar

University, or at other universities in the Egyptian region, as well as studying abroad. The

other third is for the development of institutional capacity, facilities, mosque construction,

and maintenance of educational facilities in al-Azhar.

5. OPPORTUNITIES AND CHALLENGES IN AL-AZHAR

PRODUCTIVE WAQF MANAGEMENT

As an old institution that has stood thousands of years ago, al-Azhar has enormous potential

to be developed into a qualified educational institution. Al-Azhar has power in carrying out its

mission, but also some weaknesses, opportunities and the few challenges that have confronted

it. The potential possessed by al-Azhar as the oldest educational institution in the world needs

to be described some things as follows:

First, the potential of history. Al-Azhar has been established on 29 Jumada al-Ula 359 H

(970 AD). It means that this educational institution has existed since 1040. With this long and

glorious history, it is clear that al-Azhar has been widely known by the world community

thanks to the contribution it has given to build the world civilization. Likewise, al-Azhar has

already had many alumni spread across several countries. They become public figures, state

officials (Head of State/ Ministry of Religious Affairs /Ministry of Endowments), leaders of

educational institutions and community organizations, as well as other strategic positions.

Second, institutional potential. The issuance of Law number 103 of 1961 has influenced

many changes in al-Azhar, including the opening of the science faculties and the

establishment of Majma' Buhus al-Islamiyah (Islamic Research Institute). It provides an

opportunity for al-Azhar to compete with other public educational institutions, both in Egypt

and the educational institutions in the world.

In addition to the potential present in al-Azhar, there are some weaknesses which start to

be a challenge in al-Azhar's waqf management: First, the Egyptian government's intervention.

Seeing the rapid development of al-Azhar, in 1961 the government began to declare the

nationalization of al-Azhar. With the issuance of this policy, the government began to limit

the authority of al-Azhar, the election of Shaykh al-Azhar should get the blessing of the

government.

Second, the leadership model in al-Azhar is too centralistic. Shaykh al-Azhar dominates in

policymaking in al-Azhar, from rector elections, determination of deans, lecturers and

academicians at universities, and other institutional structures.

6. THE RELEVANCE OF PRODUCTIVE WAQF EMPOWERMENT IN

INDONESIA

The management of productive waqf for education makes Al-Azhar able to develop more than

just a university, covering the fields of religion, education, da'wa and social. With its long

history and such relatively complete institutions, al-Azhar plays an important role in the

Muslim world. Like a plant, al-Azhar is a tree whose roots stick strongly in the earth, while

the trunk is towering. The leaves and fruits look fresh. Al-Azhar is so fertile to bear scholars

whose names are remembered all the time, which is always an inspiration for the younger

generation to always work, both in the context of humanity and nationality.

The success of al-Azhar in managing the productive waqf for this education has even

inspired the birth of the Waqf Board of Higher Education in Indonesia. Currently, there are

Abdurrohman Kasdi


some quite successful educational waqfs in Indonesia, among them are the Waqf Board of

Islamic University of Indonesia (BWUII), Yayasan Waqf Agency of Sultan Agung

(YBWSA), the Waqf Board of Universitas Muslim Indonesia (UMI) Makassar, the Waqf

Board of Pondok Modern Gontor and Other Education Endowments. There are several

models of al-Azhar productive endowments that can be applied in Indonesia, including:

First, establishing the hospitals. Al-Azhar has 4 hospitals, namely: As-Sayyid Jalal

University Hospital, az-Zahra University Hospital in Abbasiyah, Husein University Hospital,

and New Dimyat Hospital. Al-Azhar manages these hospitals productively, establishes

managers (directors and other staff), specialists and tariff standards, while the profit is used

for cross-subsidies. This management model can be applied in Indonesia. The waqf assets can

be utilized to assist the development of health services through the provision of public

facilities in the health sector, such as the construction of hospitals and the construction of

health schools and the development of medical sciences, as well as industrial development in

the field of medicine and chemistry.

In Indonesia there are several hospitals funded from the productive waqf and need to

improvisation by referring to the management of existing hospitals in al-Azhar, among of

them are: the construction of VIP rooms class at Malang Islamic Hospital, East Java. Malang

Islamic Hospital (RSI Malang) itself is under the support of the Foundation of Islamic

University of Malang (UNISMA) which occupies land owned by al-Ma'arif and former

School of Religious Affairs (PGAN) / Madrasah Aliyah Negeri (MAN) I Malang for 2 ha,

located on MT. Haryono street 139, Malang or 5 km from the downtown of Malang (Hasan,

2012).

Malang Islamic Hospital (Rumah Sakit Islam Malang/ RSI Malang) is granted the help for

the empowerment of productive waqf for Rp. 2.000.000.000, - (Two Billion Rupiah). The

stipulation of the grant is validated through the Decree of the Director General of Islamic

Supervision No. Dj.II / 243/2006 (Ministry of Religious Affairs, 2008, 50).. The land area

used to build the VIP-class hospital building is 600 M2. While the nazhir structure that is

mandated to manage the empowerment of the productive waqf funds is H.A. Zawawi Mochtar

(Chair), H. Chozin Ismail (Secretary), and Achmad Sodiki (Treasurer).

Besides Malang Islamic Hospital, there is also the Sultan Agung Islamic Hospital (Rumah

Sakit Islam Sultan Agung/ RSI SA). The hospital was established on August 17, 1971, and

located on Jl. Raya Kaligawe KM.4 and adjacent to the industrial growth center (Terboyo

Industrial Park), it began its service with general polyclinic service, Maternal and Child

Health for local people. The next two years it was inaugurated as a Public Hospital on

October 23, 1973, with a Decree from the Minister of Health number I 024 / Yan Kes / I.O.75

dated October 23, 1975, inaugurated as the hospital Type C (Middle type hospital).

Armed with the motto "loving Allah SWT and loving people" RSI SA carved a lot of

dedication to the community (Masyhudi, 2017). The vision also underlies the RSI SA for

much more developed into something better. Both physical development or spiritual

development. Approximately 40 years passed, RSI SA needs to realize a superior service for

the benefit of the people. One of the things that are the lack in society is the service of eye

health. It seems to be well realized by the RSI SA. It is indeed reasoned, at that time there is

no complete eye service center, especially in Central Java. Therefore, the RSI SA seeks to

establish SEC services (Semarang Eye Center).

In addition to the Islamic Hospital of Malang and Sultan Agung Islamic Hospital (RSI

SA), there are still many other hospitals that are funded from productive waqf. By obtaining

the empowerment funds of productive waqf, it can reach the Break Even Point (BEP) within a

certain time. After being able to reach the BEP and earn profits significantly, it is also

expected to provide health benefits across space and other benefits. It means that the results of


In Indonesia


the development should be given as much as possible to provide health services for the whole

community, especially to the poor, both in terms of inpatient welfare relief, and the waivers of

maintenance and medicines. Likewise, the results can be used to subsidize other sectors, such

as assisting in the development of education and so on.

Second, developing buildings, apartments, and housing. Among the waqf managed by al-

Azhar is waqf building and other rental facilities and each year makes a lot of money and

profits, so the waqf is a source of productive funds and never dry. The waqf of this building

consists of saqqah (apartment or residential area) which is leased to the Egyptians every year,

several star hotels are provided for guests visiting Egypt, waqf in the form of university

buildings with all the modern equipment and dormitories students, and waqf in the form of

hall building and auditorium as meeting room. It means that the results of the development

should be given as much as possible to provide health services for the whole community,

especially to the poor, both in terms of inpatient welfare relief, and the waivers of

maintenances and medicines.

In Indonesia, some waqf assets of empty land in urban areas that are barren and cannot be

cultivated can be produced by building leased premises for shops, apartments and other

facilities. Since 2005, through the Directorate General of Islamic Community Guidance has

allocated Rp. 24.400.000.000, - (twenty-four billion four hundred million rupiah) as initial

funding budget for several pilot projects of productive waqf (Ministry of Religious Affairs,

2008: 34).

From the budget, it is allocated into several stages. While the development of waqf

productively is done through the development of several pilot projects, among of them are:

Shophouses consisting of: First, shophouses of BKM (Badan Kesejahteraan Masjid/ Mosque

Welfare Agency) Semarang with the allocation of fund 2.000.000.000, - (Two Billion Rupiah)

residing in Soekarno Hatta Street, Sawah Besar Village, Gayamsari Sub-District, Semarang

City, Central Java. Second, Barito Shops in Central Kalimantan with the allocation of

500.000.000, - (Five hundred Million Rupiah) located on Yetro Sinseng Street, Muara Teweh,

Barito District, Central Kalimantan.

In addition to setting up the shop, land that is a waqf asset can be made productive by

building the waqf buildings and business centers, as done in Bali by establishing the Waqf

House and Muslim Boarding House with allocation budget of 400,000.000, - (Four hundred

million Rupiah), Darul Hikam Business Center in Cirebon with fund allocated for Rp.

2.000.000.000, - (Two billion Rupiah) and other development models.

The construction of a waqf building is intended to facilitate the management of waqf

properties professionally and responsibly. This building can serve as an official office

specialized in handling waqf management in various places. While the construction of

business centers can be done in various ways, including by building a complex trading market

in which there are various business activities that support the development of waqf.

Before the construction of such public facilities, it is necessary to choose the Nazir (waqf

supervisor) and develop its functions in good managerial capability, commendable morality,

honesty, and adequate business skills. To create the profitable and accountable business

centers, there are several conditions to fulfill:

Building the business centers with adequate business facilities and infrastructure and located

in the strategic places.

Human Resources (HR) which has entrepreneurship and professionalism spirit and has

certification of nazir.

Variations of transaction contracts in accordance with Islamic law or Islamic Financial

Engineering.

Abdurrohman Kasdi


Recording system (accounting) in Islamic Shari'a. This recording system should be transparent

and accountable.

Board of Trustees and Guarantor (Ministry of Religious Affairs, 2008: 45–46).

Because the investment needs to be able to find capital sources from various parties by

still based on the principles of capital and sharia finance such as the capital source come from

the honest and the trustful investor, raising funds from waqf money, or loans from the Sharia

banking. The realization system of cooperation through a musyarakah contract, where the

profit sharing is made for a for a minimum of five (5) years, with the provision that business

control held by the largest shareholder with honest and trustworthy principles.

Through the construction of waqf building and business center building, various strategic

business fields can be realized, such as opening a showroom, internet cafe, photocopy shop,

notary office, halal foodcourt (restaurant), Hajj and Umrah service office, travel and travel

tour, and so on.

Business centers can also be done by renovating some facilities of worship that are located

in the strategic places economically become a business building without throwing away the

means of worship. Several mosques are located in the center of the city and trade center,

renovated and replaced into several floor buildings, and among one floor serves as a mosque.

If a large building is built in which there are several functions, such as for the office of waqf,

self-service, and mosque as well, then the place is not only profitable in the economic aspect

but also will be useful from the side of worship.

Third, investing the assets of waqf. Al-Azhar has shares in several companies and banks,

including Islamic Bank Faisal and Development Bank and Property, as well as the investment

and check certificates. In the context of Indonesia, investments can be made to produce waqf,

especially waqf money. If there are many generous people donate their money and the money

is invested by Indonesia Waqf Board (BWI) in cooperation with Shari’a Monetary Board –

Waqf Money Receiver (LKS-PWU), then the profit from the investment can be utilized for the

public interest.

Waqf money is very potential to be developed in Indonesia (Mubarok, 2008: 123). Due to

this type of waqf, the mobilization power will be much more evenly distributed to the

community members compared to the traditional-conventional waqf type, ie in the form of

physical property usually done by relatively capable families. One of the types that can be

developed in the mobilization of money waqf is the Dana Abadi type, which the fund is

collected from various sources in various legitimate and lawful ways. Then large volumes of

funds are invested with high levels of security through the Shari'a Guarantee Institution

(Ministry of Religious Affairs, 2008: 9).

This investment security covers at least two aspects: First, the security of the principal

amount of the waqf, so there is s a guarantee of wholeness and no depreciation. Second, the

investment of such funds can be productive in making revenue or income (Permono, n.d., 9).

From this income, the financing of the activities of the institution will be done and also

become a source for people economic development.

Through investment, waqf money can be directed to strategic sectors, such as Micro

Credit Sector, Sharia Financial Portfolio Sector, and Direct Investment Sector. The three

sectors are highly empowered to boost economic activity and promote the people’s welfare,

with the record that all activities in the sector are managed through professional management

and political policy support from the government (Fitriyah, 2018: 202).

Fourth, the utilization of waqf for education. The potential for the development of

educational institutions funded by productive waqf in al-Azhar is enormous. The Institution of

Primary and Secondary Education (al-Ma'ahid al-Azhariyyah) run by al-Azhar is in every


In Indonesia


mantiqa (district), while for the university, al-Azhar manages 1 university in the center

(Cairo) and 9 university branches spread in 7 provinces (Dimyat, Qana, Asyut, Mansurah,

Tanta, Manufiyah, and Alexandria). Al-Azhar also runs the Institute for Islamic Research

(Majma 'al-Buhus al-Islamiyah), al-Azhar parent library and Al-Azhar Student Dormitory.

The utilization of waqf productive in al-Azhar can also be applied in Indonesia by

facilitating scholars and students through adequate facilities and infrastructure, they can

conduct various research activities (research) and complete their studies for free. There are

many programs funded by Awqaf such as book writing, translation, and scientific activities in

various fields. Waqf does not only support the development of science and education but also

provides the various facilities that society need such as hospitals and business centers.

7. CONCLUSION

The productive waqf has a significant role in the development of al-Azhar education. The

utilization of Al-Azhar's productive waqf is conducted by facilitating scholars and students

through adequate facilities and infrastructure, scholarships, and salaries for al-Azhar staff and

lecturers. They can do research, book writing, translation and complete study for free financed

from productive waqf. Institutions in al-Azhar financed from productive waqf funds include

primary and secondary education institutions, al-Azhar University, Hospitals, Islamic

Research Institutes, libraries, and Kamil Salah. Productive waqf is very significant in

financing the operations of existing activities in the institution, either with the system of

independence or cross-subsidies.

There are several types of empowering productive endowments developed by al-Azhar,

namely: hospital empowerment type, student empowerment type, empowerment type of

Research Institute, al-Azhar management type, Salah Kamil empowering Waqf type, library

empowerment type, and empowerment type productive waqf for education. The success of al-

Azhar in managing the productive waqf for this education has inspired the establishment of

Waqf Board of Higher Education in Indonesia. Currently, there is some quite successful

educational waqf in Indonesia, among of them are Waqf Board of Islamic University of

Indonesia (BWUII), Yayasan Waqf Agency of Sultan Agung (YBWSA), Waqf Board of

Universitas Muslim Indonesia (UMI) Makassar, Waqf Board of Pondok Modern Gontor and

Other Education Endowments.

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Abdurrohman Kasdi


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Documents

THE EMPOWERMENT OF PRODUCTIVE WAQF IN EGYPTIAN AL …€¦ · example, the waqf of agricultural land in Egypt covers one-third of the total agricultural land existing in the early