Not Just Land: Waqf Can Now Be in the Form of Money — Here's How
Waqf is one of the practices that holds great virtue in Islam. Assets that are endowed can provide continuous benefit for the interests of the ummah, so that waqf is not only a form of worship for the person who performs it, but also a means of helping others and building the common good of society.
In Islamic teaching, waqf is classified as sunnah muakkadah, or a highly recommended practice. Waqf can be performed by a Muslim who has the means and assets that can be set aside for endowment purposes, without neglecting the basic needs of themselves or their family.
The recommendation regarding waqf derives from the Qur’an and the hadith of the Prophet Muhammad (peace be upon him). Although the term “waqf” is not mentioned directly in the Qur’an, the basis for its implementation is closely linked to the command to spend from the wealth one loves and to do good in the way of Allah. One such reference is found in Surah Ali Imran verse 92, which affirms that a person has not attained perfect righteousness until they spend from that which they love.
As times have developed, waqf is no longer known only in the form of land, mosques, schools, or other immovable assets. Waqf can also be carried out in the form of money, which is then managed productively so that its benefits can be felt over the long term. This concept opens up broader opportunities for the public to participate in waqf while strengthening the role of waqf in supporting various needs of the ummah.
The development of cash waqf is now being pursued through various innovations in the sharia financial sector. One such initiative is a collaboration between Yayasan Pesantren Islam (YPI) Al Azhar and PT Bank Syariah Indonesia (BSI) Persero Tbk., marked by the signing of a Cooperation Agreement and the launch of the BSI Waqf Deposit Series for YPI Al Azhar.
The programme is an endowment fund movement based on cash waqf, aimed at supporting the improvement of Islamic education quality and the equitable distribution of social welfare for the ummah. The public can choose between two cash waqf schemes: temporary waqf (for a fixed term) and permanent waqf (in perpetuity).
“The signing of the Cooperation Agreement and the launch of this programme must not stop as a mere ceremony, but rather become a concrete and sustainable step,” said BSI Director of Retail Banking, Kemas Erwan Husainy, in his statement.