Waqf Holds Potential to Generate Rp 109 Trillion Annually

Waqf is estimated to have an economic potential of up to Rp 109 trillion per year if waqf assets are managed productively. This potential stems from waqf land assets and cash waqf, which are currently considered to be underutilised.

The Chairman of the Expert Board of the Indonesian Islamic Economics Association (IAEI), Dr Mustafa Edwin Nasution, stated that the value of waqf land assets in Indonesia is estimated to reach approximately Rp 2,000 trillion. Assuming these assets can generate a net profit of 5 per cent, the potential economic yield reaches about Rp 100 trillion per year.

Meanwhile, cash waqf holds an additional potential of approximately Rp 9 trillion per year, assuming development at the same rate.

“Thus, according to calculations, the potential economic yield of waqf can reach around Rp 109 trillion per year, which can then be directed towards improving the welfare of the community,” Mustafa explained during the National Mudzakarah and Discussion Forum of the IAEI Expert Board in Jakarta on Tuesday (29/09/2026).

Mustafa assessed that the primary issue regarding waqf is not merely the size of the assets, but how those assets can be managed to become more productive. According to him, waqf should not remain as immovable assets that fail to generate added value.

“Waqf should not stop being a dormant asset. It must become a productive asset capable of creating added value and strengthening the economic resilience of the community,” said Mustafa.

Therefore, he believes that strengthening the mandate and institutions of waqf is necessary so that management can move further towards economic productivity. One point of focus is the authority of the Indonesian Waqf Board (BWI) as regulated under Article 49, paragraph (1) of the Waqf Law.

Mustafa noted that the institutional space and governance of waqf need to be strengthened so that waqf assets can provide greater economic benefits to the public.