The role of productive waqf in community economic empowerment : a case study of muhammadiyah regional board of Lumajang, East Java, Indonesia

Abstract EN

This article aims to examine the role of productive waqf(1) in community economic empowerment.

The object under study is a waqf managed by the Muhammadiyah Regional Board (PDM) of Lumajang East Java, Indonesia; a gas station business unit called SPBU Shirkah Amānah.

PDM of Lumajang is taken as the subject of research because it has succeeded in managing profitable and productive waqf in business entities, and is playing a role in the community’s economic empowerment.

In this study, the data is collected through interviews, document reviews, and observations.

The findings of this study show that creative innovation in developing productive waqf both in the form of business entities and business cooperation models conducted by PDM of Lumajang can generate a significant contribution in opening new jobs and investment.

Further, it can also increase the community’s financial income, increase social service facilities, and provide financial contribution to the sustainability of religious and social activities.

Accordingly, it is argued that this productive waqf is likely able to play a significant role in the empowerment of the community’s economy and might also be adapted to be a pilot model for productive waqf management.