Business-Industry Collaboration in Developing Waqf Deposit Prototypes and SOPs in Islamic Financial Institution

Abstract

The development of Wakaf Deposits in Indonesia holds significant potential in strengthening Islamic finance and maximizing waqf fund utilization. However, challenges related to regulatory alignment, risk management, transparency, and operational standardization hinder its effective implementation across Islamic Financial Institutions. This study aims to develop a prototype and Standard Operating Procedure (SOP) for Waqf Deposit products in Islamic Financial Institutions, with an emphasis on Islamic Banks, Islamic Cooperatives, and Islamic Fintech. This Waqf Deposit product is designed to support the optimal potential of waqf through an innovation-based and collaborative approach. This study targets the study of Islamic law and positive law related to waqf, the development of a BMC (Business Model Canvas)-based business model, the design of operational stages, and cost and benefit analysis. In addition, risk and prevention analysis is carried out in accordance with sharia principles and OJK (Financial Services Authority) regulations, including the preparation of RAC (Risk Acceptance Criteria) and waqf audit guidelines. The results of this study are expected to provide practical guidance for Islamic Financial Institutions in implementing Waqf Deposit products, as well as stimulating synergy between the banking, cooperative, and fintech sectors in supporting community empowerment and the development and improvement of the halal industry. This study contributes to the Islamic finance sector by proposing a sustainable business model, operational workflow, risk mitigation strategies, and a waqf audit framework based on Waqf Core Principles to enhance transparency and accountability. The implications of this research extend to policymakers, financial regulators, and Islamic Financial Institutions, offering a comprehensive technical guideline for the systematic implementation of Wakaf Deposits.