Transforming Islamic Philanthropy Through Policy: A Study of Waqf Regulation and Implementation in Indonesia

Waqf, as an instrument of Islamic philanthropy, holds a strategic role in socio-economic development. However, its management in Indonesia has undergone various dynamics in line with regulatory changes from the colonial period to the era of reform. This study analyzes the transformation of waqf policy and its impact on management practices among communities and related institutions. The objective of this research is to explore the evolution of waqf regulations in Indonesia and their implications for management models, including the shift from traditional asset-based waqf towards productive, finance-based waqf. This study employs a descriptive qualitative approach, utilizing data collection techniques through documentary analysis of both historical and contemporary regulations. Data analysis is conducted descriptively by elaborating findings from primary sources (such as statutory regulations and institutional reports) and secondary sources (academic literature). The findings reveal that waqf regulation in Indonesia has experienced significant transformations from the Dutch colonial period to the reform era. This transformation is marked by the establishment of specific regulations governing waqf management and the standardization of nazhir (waqf managers). However, implementation remains hindered by limited institutional capacity, weak coordination among stakeholders, low transparency in waqf asset management, and a lack of innovation in waqf practices. This study proposes strengthening multi-stakeholder collaboration models and leveraging digital technology to enhance accountability and the economic value of waqf. The policy implications include institutional reinforcement, diversification of waqf assets (land, cash, investments), and an increased orientation toward public welfare through sustainable management models.