Optimization of Digital-based Waqf and Its Role in Economic Development in Indonesia

This study aims to analyze the optimization of digital-based waqf in Indonesia and its contribution to economic development. This study uses a qualitative approach through descriptive analysis. The results and discussion of this study show that digital-based waqf has enormous potential in Indonesia; technological advances have helped waqf management with the presence of various platforms from several waqf institutions, as well as new technology in the form of blockchain that can assist in waqf management and, in the end, can contribute to economic development. This study concludes that optimally managed waqf can contribute to creating a prosperous society. The benefits of this research are expected to increase awareness about the importance of waqf and the potential of waqf in Indonesia. This study recommends the parties involved in waqf optimize further the potential of waqf , which is still unexplored


Introduction
Developing countries such as Indonesia have many problems, especially those related to the economy, such as poverty, unemployment, unequal distribution of income, and other things. Based on the latest data released by the Central Statistics Agency (BPS) in 2022, the number of poor people in Indonesia is said to have decreased from the previous year. The percentage of poor people in Indonesia in March 2022 was 9.54 percent, or equal to 26.16 million people (Penduduk & Maret, 2022). According to data released by BPS, the open unemployment rate in Indonesia reached 5.83 percent. Even though the poor population has decreased and the number of workers has increased, it still has to be completed as a country's economic development mission.
In overcoming economic problems, especially a large number of poor people and the unemployed, waqf as a form of Islamic philanthropy is present as an effort to overcome these problems. Considering that Indonesia has the world's largest Muslim population, based on data from the BPS in 2010 that the number of the Muslim population in Indonesia reached 87.18 percent of the 238 million population (Wakaf, 2020). The latest data as of December 31, 2021, issued by the Ministry of Home Affairs (Kemendagri), the Muslim population reached 86.9 percent or as many as 237.53 million people from 273.32 million of the entire population in Indonesia. (Bayu, 2022). That way, the potential for waqf is huge in Indonesia and can be used to overcome economic problems such as poverty and unemployment.
Waqf is one of the teachings in Islam that is not only included in the discussion of worship but also includes muamalat affairs. The reason is waqf is not only a form of obedience to Allah SWT. However, waqf is more than that it has a social side as a form of concern for a Muslim to his fellow human beings or the surrounding community. Moreover, it also has a goal to be able to improve the quality of life of the community in various aspects. Even in its development, especially in Indonesia, the object and number of waqf are increasing and increasingly diverse. Both waqf assets are in the form of land, buildings, money, and other forms (Rahmawati et al., 2021).
In addition, waqf as a sharia financial instrument has great potential because it has intact assets that can provide endless benefits to the community, thereby realizing prosperity and assisting the country in stabilizing its economy. Moreover, with the swift current of modernization, the development of waqf has been driven by the presence of technology. The management of waqf assets using technology has provided better benefits for the parties involved in it so that access becomes more quickly distributed and waqf recipients can enjoy the benefits of waqf assets, and waqf managers can be helped to optimize waqf management to be more efficient and effective (Sukma, 2021).
Economically, based on Law no. 41 of 2004 concerning waqf, the aim is to empower waqf productively to create social benefits (Hadi, 2018). Reflecting on a number of Muslim countries, this waqf has succeeded in contributing to economic problems in a country. This is proof that waqf has excellent potential to be developed in realizing the financial independence of the people. The benefits of this waqf can be in the form of poverty alleviation, educational assistance, health assistance, and other formats. These conditions align with the objectives of economic development, especially from the Islamic perspective (Fuadi, 2018).
Economic development has five indicators that can be used, including poverty, unemployment, inflation, inequality, and economic growth. These indicators can be used to see the level of welfare of society in economic development (Fuadi, 2018). However, in Islam, economic development in a country must have a further goal not only in terms of material. In other words, economic development in Islam aims to increase human welfare and happiness in this world and the hereafter. Therefore, every development must be based on sharia provisions. The main target of economic development in Islam is humans. Thus, development based on these five indicators not only builds the people's economy but also must be able to build the mental attitude of the community itself (Purwana, 2013).
Departing from the vast potential of waqf in Indonesia because the population is Muslim, reaching 237.53 million people based on data from the Ministry of Home Affairs as of 2021 (Bayu, 2022), plus the development of digitalization of waqf so that more parties can be involved to participate as waqif or people who do waqf, and the distribution of waqf to mauquf alaih will be more efficient and effective by nazhir or waqf manager. The author assumes that waqf can be an instrument that plays a role in economic development in Indonesia. Thus, there are three essential questions in this research: how digital-based waqf can be optimized in its management, what is the potential of digital-based waqf in Indonesia, and what is the role or contribution of digital-based waqf to economic development in Indonesia. This study aims to discuss digital-based waqf contribution to creating people's welfare as a form of economic development in Indonesia. This research is also expected to provide benefits, especially for understanding digital-based waqf on the one hand and understanding the contribution of digital-based waqf to economic development in Indonesia.

Method
This research is a type of qualitative research using literature or literature studies. The research is carried out by collecting library sources related to waqf, economic development, and digitalization in Islamic finance. After the library sources have been collected, then they are categorized based on the questions in the research. The data that has been obtained from these sources is then abstracted to be able to display the facts and these facts are interpreted to produce knowledge. At this stage, the writer uses descriptive analysis to explain the role of digital-based waqf in economic development in Indonesia.

Results and Discussion
Waqf in Arabic comes from the word waqf, which means radiah (returned), al-tahbis (detained), altasbil (captive), and al-man'u (preventing) (Rosadi, 2019). In general, waqf can be understood as a gift in whose implementation is carried out by retaining ownership and making it have a public benefit. Withholding means that the original owner is holding the goods or assets that are being waqf so that they are not handed down, not inherited, not sold, not donated, and the like (Fuadi, 2018). This is also in line with the understanding expressed by Imam Nawawi that waqf is holding property that has the potential to be utilized without the loss of the object, by deciding on legal action on the property and distributing it to something that is allowed and available (Athoillah, 2015).
Regarding the legal basis of waqf, there is, in general, no verse in the Qur'an that provides a clear explanation of waqf. Therefore, waqf is often categorized as a form of alms. Based on this categorization, the basis used by scholars to explain the concept of waqf is in the verses of the Qur'an, which explain alms in general. Among them are Al-Baqarah verse 267, Ali Imran verse 92, and several other verses in the Koran. It is also reinforced by the hadiths, which indirectly show that the practice of waqf has been carried out by the companions of the Prophet Muhammad SAW .
Furthermore, waqf is generally divided into two forms, expert or family waqf, and khairi or general waqf. However, in their development, these terms were developed by scholars. For example, during the Mamluk dynasty, waqf was divided into three types: awqaf ahbas, awqaf hukmiyah, and awqaf ahliyah. The development of a variety of waqf is also carried out by Qahaf, which divides it into three forms, social waqf or khairi, waqf for families or experts, and waqf a combination of both or musytarak. In addition, Qahaf also distinguishes waqf from the aspect of its use into two forms, namely waqf, whose object is used to achieve its goals directly, such as mosques for worship, schools for learning, hospitals for treatment, and others. Also, waqf, whose object is used for production activities, where the results are then utilized for the waqf itself or also known as productive waqf (Mubarok, 2008).
In other terms, the division of waqf based on the use of this object is known as waqf of immovable objects and waqf of movable objects. The waqf of the immovable property refers to Law no. 41 of 2004 concerning waqf in the form of land, buildings, plants, and the like. Meanwhile, the waqf of movable property includes money, precious metals, securities, vehicles, intellectual property rights, shares, and the like (Sulistiani, 2017). Furthermore, waqf has economic value that can be used as a potential source of funds to be developed, managed, and utilized in order to provide optimal results. Several countries, such as Egypt, Malaysia, Turkey, and others, have shown successfully managed waqf as an Islamic economic instrument that is beneficial to society (Selasi, 2021).
Although waqf has enormous potential, especially in Indonesia, its management has several shortcomings, both internally and externally. This internal problem in waqf management is due to the lack of competence and professionalism possessed by nazhir as waqf manager. At the same time, the external problems waqf managers face are due to a lack of understanding about waqf and also about its regulations (Selasi, 2021). Therefore, the presence of technology is expected to help in terms of waqf management in order to provide the best service.

The Development of Digital-based Waqf in Indonesia
The Industrial Revolution 4.0 has dramatically impacted various aspects of people's lives. As with previous revolutions, the 4.0 industrial revolution is also expected to help improve the quality of people's lives. Breakthroughs in this revolution can be seen in financial technology companies and online markets, making it easier for people to carry out economic activities. Not only in economic activity, but this revolution has also entered into the religious realm. The Industrial Revolution 4.0 has transformed religious practice into a more modern and futuristic position (Putri & Garadian, n.d.).
It is undeniable that the development of waqf in Indonesia continues to increase. The increase in waqf can be seen in the number and types of waqf assets that have increased. Both waqf assets are in the form of land, buildings, money, securities, shares, and the like, which are spread throughout Indonesia. Waqf institutions must also use the presence of digitalization, which changes people's lifestyles, to collect waqf funds easily (Rahmawati et al., 2021). The advent of the digital era has had a massive influence on various aspects of life in society, not least in the management of one of the Islamic financial instruments, namely waqf. Waqf management utilizing this digitalization, both productive and non-productive, is expected to be able to simplify and optimize waqf management. Thus, the distribution of the benefits of this waqf can be more expansive and has implications for the realization of equitable welfare (Sukma, 2021).
The Indonesian Waqf Board (BWI), an independent institution with the authority to develop waqf in Indonesia, has also carried out digital transformation to develop waqf. This can be seen from the launch of e-services for nazhir on July 1, 2021. BWI launched the service as a stage of the digital transformation process to strengthen the waqf development ecosystem in Indonesia. The platform launch by BWI has also shown its commitment to encouraging digital transformation as in effort to optimize the potential of waqf. Also, to further increase public awareness of participation in waqf, more than half of the people in Indonesia are millennials and generation Z, who tend to be more familiar with the digital world (Rahmawati et al., 2021).
Before launching e-services, BWI had already launched two platforms on April 10, 2022. The two platforms were berkahwakaf.id and a social media platform called sahabatbwi.com. The establishment of these platforms is intended to make it easier for the community to make waqf. After that, BWI also wants to strengthen the digitization of nazhir and integrate it into waqf data. With digitalization, nazhir must strengthen digital channels for collecting cash waqf funds and waqf through money and develop a reliable and credible waqf reporting system. In the third stage, BWI continues to develop digital transformations in waqf, especially those that can support gaining public trust. Therefore, blockchain-based waqf can be a solution because, through blockchain, transparency and accountability in waqf management can increase (Rahmawati et al., 2021).
Digital-based waqf, or utilizing technology in Indonesia, also takes the form of an online waqf joint venture, which is none other than the development of cash waqf that utilizes the presence of technology. Essentially, this waqf joint venture is the same as the concept of fundraising or crowdfunding. In this case, digital platforms such as kitabisa.com have been able to help collect cash waqf from waqifs more easily. The concept used in this waqf joint venture is to raise funds for a particular project and will generate benefits for many people. This waqf joint venture can easily be carried out by every element of society using digital wallet platforms such as Dana, Go-Pay, OVO, and the like (Putri & Garadian, n.d.).
BWI and the kitabisa.com platform and the development of digital-based waqf can also be seen from the application WAKDIMIN or Digital Money Waqf for Millennials. This application was created to be used by someone who wants to make waqf using digital money. Waqf payments in the WAKDIMIN application can use several platforms that have been integrated, such as banks and digital wallets such as Dana, Go-Pay, OVO, and the like. The purpose of making the WAKDIMIN application a form of digital-based waqf is to provide convenience to the waqif. The WAKDIMIN application, in this case, acts as a nazhir who uses the waqf money to be invested, and when it has made a profit, it will be divided by 10 per cent for the operational costs of the application, and the rest will be distributed to parties who are entitled to receive benefits from the waqf. They also routinely publish monthly financial and activity reports (Wahyu & Wardani, 2020).
WAKDIMIN as nazhir strives to maximize the benefits of the digital waqf money by helping to develop halal MSMEs using the 3P principles, namely funding, mentoring, and supervision. That way, MSMEs will be given financial assistance, and after that, they will get assistance in using the funds so they do not make mistakes. Furthermore, MSMEs that receive the funds will then be monitored to remain compliant with sharia principles. In the future, the development of MSMEs will be able to have an impact on opening job opportunities for the community (Wahyu & Wardani, 2020). Dompet Dhuafa also launched a digital-based waqf called wakaferse. This waqf is a universal movement of waqf as an initiation so that people can be encouraged to do waqf, especially cash waqf. Not only that, but this wakaferse also has a spirit as a form of endeavor to realize comprehensive social assets in the joints of people's lives. This breakthrough issued by Dompet Dhuafa can make all levels of society participate in waqf, not limited by age or class. It turns out that the contribution that everyone can make is not limited to cash waqf. However, also through writing or creative content about waqf and uploading it on social media. For waqf in Dompet Dhuafa, we can start with Rp. 10,000 through the walletdhuafa. org website (Dhuafa, 2022).
In addition to cash waqf, digitization has also penetrated the waqf object in the form of shares. However, in this case, the waqf shares are sharia shares. This is based on halalness by the fatwa from the MUI National Sharia Council (DSN) No. 40/DSN-MUI/X/2002 concerning the Capital Market and General Guidelines for implementing Sharia Principles in the Capital Market and International Sharia Standards (Selasi & Muzayyanah, 2020). Sharia shares started to be marketed in the Capital Market in July 2000 after the launch of the Jakarta Islamic Index (JII). The launch of JII is a form of cooperation between the Indonesia Stock Exchange (IDX) and PT Danareksa Investment Management. Then the regulation regarding sharia shares was refined in 2009 with the issuance of the Sharia Securities List (DES). In 2011, the IDX issued the Indonesian Sharia Stock Index (ISSI) (Prasetyo, 2019). In the same year as ISSI was launched, the Sharia Online Trading System (SOTS), an online sharia stock transaction system, was also launched. Since its launch, the number of stock investors continued to experience an increasing trend every year. Investors who wish to make waqf using shares must make transactions on the SOTS platform online because this platform also has a certificate from the DSN-MUI (Badan Wakaf Indonesia, 2021).

Use of Blockchain in Digital-based Waqf
Digitization of waqf continues to grow, not only taking part by creating or launching digital platforms, applications and websites to facilitate waqf as is done by kitabisa.com and Dompet Dhuafa and other waqf institutions. Digital-based waqf can also take advantage of blockchain in its management to be more transparent, as BWI aspires in the third stage of digital waqf transformation (Rahmawati et al., 2021). As is known, the blockchain is one of the essential technologies to support efficiency and transparency in swiftly changing world. Blockchain has also created new systems for recording or managing businesses with little need for intermediary. Coupled with increasing dominance in the global market, this system can provide a high level of cost-effective governance compared to other systems (Walaa, 2021).
With the presence of technology in the form of blockchain, it is expected to overcome the main problems in waqf itself in the form of low levels of transparency, efficiency, and accountability by nazhir or managers, which can reduce the realization of the potential possessed by waqf. The reason is that there are still many waqf institutions whose reporting or recording is still low and makes public awareness not increase. The unavailability of data on the development of waqf also contributes to public trust in waqf institutions (Mutmainah et al., 2021).
In waqf management that uses blockchain-based technology, it consists of planning, organizing, actuating, controlling, and evaluating. In addition, there are three advantages to using this blockchain technology to manage waqf for transaction actors. These include the emergence of trust in the blockchain due to the realization of a blockchain network, transparency in this blockchain in the form of a ledger or bookkeeping record that can be read by both parties, and accountability contained in the blockchain in the form of smart contracts or chaincodes (Suryani & Mursyidah, 2020).
So, it can be said that waqf management that utilizes blockchain technology can increase the opinion of waqf assets due to the guarantee of transparency between the waqif, or waqf giver, and the nazhir, or waqf manager (Suryani & Mursyidah, 2020). According to Sukmana, there are three advantages contained in waqf that are managed using blockchain technology. Especially from increasing the efficiency and effectiveness of waqf. First, if waqif and nazhir are connected in a blockchain system, waqf transactions can be carried out with a high transparency. Second, suppose this blockchain-based waqf can globally reach nazhir as a waqf manager. In that case, there is a possibility that waqf can be waqf in other countries and, of course, open up opportunities for countries in need of their economic development. Third, as a collaborative recording tool, this blockchain indeed allows related parties such as waqif, nazhir, to mauquf to monitor each other together, and transparent funds will make it more effective (Roziqin, 2021).
However, the potential for using blockchain in waqf management has not been explored much. This blockchain has been able to provide solutions related to problems in waqf management because transactions are easy to audit and verify (Zulaikha & Rusmita, 2018). Furthermore, education and communication are needed at the preparation level if blockchain is to be implemented in waqf management in Indonesia. It is necessary to gather experts from related fields to make the digitization of waqf management through blockchain a vital agenda item. Moreover, with the vast potential of waqf in Indonesia, blockchain can increase public trust because of its effective, efficient, transparent, and accountable management. So, waqf can be used as a support for economic development in Indonesia (Mutmainah et al., 2021).

The Potential of Digital-based Waqf and Its Role in Economic Development in Indonesia
Based on calculations from the Indonesian Waqf Board (BWI), the potential for waqf, especially cash waqf, in Indonesia, could reach IDR 188 trillion in one year. However, the collection of this cash waqf has only reached Rp. 831 billion, or less than 0.5 percent of the overall potential. However, overall waqf assets have the potential to reach IDR 2,000 trillion. The presence of digital platforms from several waqf institutions is certainly considered very important to optimize the waqf's potential. Not only that, but the use of waqf can also be broader in scope, not only as a form of worship but also in its development towards socio-economic goals (Yuliastuti, 2021).
Many digital platforms have been created by several institutions such as BWI, Dompet Dhuafa, Rumah Zakat by launching waqf.id, and even Tokopedia has contributed to supporting the National Money Waqf Movement, which was launched in January 2021 by the government (Yuliastuti, 2021). Furthermore, it is not only cash waqf that can be digitized to continue to explore it. Other waqf property objects, such as sharia shares, also have enormous potential in Indonesia. In recent years, the number of Islamic stock investors has continued to grow. As many as 93,870 investors are listed in the Islamic capital market as of March 2021, with a very high average growth of around 65% in one year from 2016 to 2021 (Niswah, 2022).
The potential for waqf has benefited the majority of the Muslim population in Indonesia, which is quite a lot, reaching 237.53 million people based on data from the Ministry of Home Affairs as of 2021 (Bayu, 2022). Waqf by optimizing digitization through available platforms is also beneficial, especially with the very high number of internet users in Indonesia. Based on data released by the Association of Indonesian Internet Service Providers (APJIII) shows that there is a development towards internet use at the provincial level, which is getting better and more evenly distributed. Although the province located on the island of Java still occupies the province for internet users in Indonesia, The number of people connected to the internet from 2021-2022 based on a survey conducted by APJII reached 210,026,769 of the total population of Indonesia in 2021 as many as 272,682,600 people (Indonesia, 2022). Departing from the data on internet users in Indonesia, which reaches this number, it certainly opens up considerable opportunities to optimize digital-based waqf in Indonesia.
Moreover, new concepts emerged after the Industrial Revolution 4.0, namely Society 5.0, which was planned as a significant transformation in Japanese society. Society 5.0 understands a concept that defines that humans and technology will be able to coexist to improve the quality of human life sustainably. Thus, economic growth and technological progress are used as the main goals to create a society that can live optimally and not only for the prosperity of a few people (University, 2022). Of course, the reality of a new concept increasingly supports the optimization of digital waqf, especially in Indonesia, and is also in line with the spirit of economic development.
Indonesia is considered to be a developing country with problems of poverty, unemployment, inequality, unequal income distribution, and others. In this case, the role or contribution of waqf is indispensable as one of the supporting instruments for national economic development. In its development, waqf has indeed had an essential role in economic development in Indonesia. The role of waqf supports development in Indonesia from aspects such as education, health, agriculture, economics and finance, and technology (Selasi, 2021).
With waqf, Islam has established that all elements of society have a role to play in building prosperity. The creation of a stable economy and the realization of sustainable economic development are the main points of waqf as one of the supporters of development in Indonesia. Efforts to realize this welfare as the core of economic development can be seen from using waqf assets, such as land used to build supporting facilities that can help increase community resources. This is undoubtedly very important because increasing resources is believed to be an essential capital in economic development .
In its mission to assist economic development, waqf institutions have a role in helping the state reduce the burden of spending on managing public facilities. It can also increase the demand for goods and services and help to provide job openings. In economic development, especially from the Islamic perspective, humans occupy the position of development actors who must be able to achieve happiness in the world and the hereafter. The state must provide public facilities in education, health, and others. The presence of waqf with enormous potential, especially with its digital-based opportunities, can help the state reduce the spending burden to provide these facilities. Not only that, but waqf also contributes to the distribution of wealth. Thus, the level of demand for goods and services will increase. The reason is that people who benefit from this waqf can spend it on their daily needs. The benefits of waqf can also be channeled to create a course place to create a skilled workforce. Thus, more opportunities exist to find work and reduce unemployment .
The role of waqf in economic development can also be in the form of assistance or support to develop micro, small, and medium enterprises (MSMEs), as carried out by the WAKDIMIN platform. The platform has 3P principles, namely funding, mentoring, and supervision. WAKDIMIN, as nazhir is indeed targeting the development of MSMEs, to improve the community's economy (Wahyu & Wardani, 2020). In addition, there are still many forms of using waqf to play a role in economic development. Especially with the presence of technology, which can also facilitate the distribution of waqf benefits for various aspects that have an impact on the welfare of the community. However, it is not without challenges, although the potential for waqf is vast, especially with the technology that can make it easier. A number of challenges are faced, including the minimal number of professional nazhir in Indonesia, the absence of projects that are the mainstay of waqf institutions, and the lack of socialization carried out by various related elements (Fuadi, 2018). However, the problems faced seem to be easily overcome with technological advances, where this waqf is already technology-based. It is not only used for fundraising but also facilitates socialization in the community and makes it easier to distribute the benefits of the waqf to various parts of Indonesia. The presence of blockchain technology will also make the management of this highly potential waqf efficient, effective, and transparent. It is just that it still takes time to optimize the potential of waqf, especially in Indonesia, which requires the participation of all elements: individuals, communities, institutions, and the government. So, waqf can create prosperity as the core of economic development itself.

Conclusion
Based on the results of the research that has been done, several conclusions can be drawn as follows. First, waqf is not only a form of worship or obedience to Allah SWT. More than that, waqf has a social aspect. The benefits resulting from this waqf can be enjoyed continuously because the waqf goods are permanent. In its development, waqf takes two different forms depending on the use of the object, namely direct waqf or usually immovable objects such as land and productive waqf or waqf of movable objects in the form of money, shares, and others. Productive waqf, whether in money or shares, has excellent potential to be developed.
Second, the presence of technology has made waqf management easier. Digital-based waqf is more able to reach many parties, both in terms of fundraising, socialization of waqf, waqf management by nazhir, and distribution of waqf to mauquf alaih. Several institutions such as BWI, Dompet Dhuafa, Rumah Zakat, the kitabisa.com platform, Tokopedia, and others have helped to optimize digital-based waqf. Not only that, but the presence of new technology in the form of blockchain can also help manage waqf that is more efficient, effective, transparent, and accountable. So that it can empower waqf clearly and can build public trust to also participate in waqf. Especially with the vast potential in Indonesia.
Third, the digitization of waqf can increase the potential of waqf to be more optimized. Able to place waqf as one of Indonesia's economic development instruments. Waqf management, primarily digitally, can contribute to helping the state provide public facilities needed by the community, distribute wealth to the poor, and even be able to provide employment opportunities to reduce unemployment. The use of waqf results, both direct and productive, can be seen in the construction of schools or places of education, hospitals, the provision or assistance of capital, and the like, which aim to form a prosperous society.