PERKEMBANGAN ISLAM PADA ABAD PETENGAHAN

Hanya Abdurrahman, satu-satunya keturunan bani Umayah yang bisa melarikan diri ke Andalusia dan membangun dinasti Umayyah II di daratan Eropa. Berhubungan dengan  perkembangan Islam di Asia dan Afrika, Islam juga tersebar ke Eropa. Dan melalui tiga jalan sebagai berikut.

1. Jalan barat, yang dilakukan dari Afrika Utara lewat Semenanjung Iberia yang dipimpin thariq bin ziyad (711 M). Bahkan, tentara Islam bisa lewat Pegunungan Pirenia yang akhirnya ditahan sama tentara perancis yang dipimpin karel martel di kota poitiers (732 M). Akhirnya, pemerintahan Khilafah Umayyah memimpin di semenanjung Iberia yang dikenal dengan bani Umayah II (711 M-1492 M) yang beribu kota Cordoba.

2. Jalan tengah, yang dilakukan dari Tunisia lewat Sisilia menuju semenanjung Apenina. Islam bisa menduduki Sisilia dan Italia selatan, tapi bisa direbut kembali sama bangsa Nordia pada abad ke-11

3. Jalan timur, pas tahun 1453, turki yang dipimpin Sultan Muhammad II bisa menaklukkan Byzantium dan mengagetkan tentara byzantium timur. Dari Byzantium, tentara turki usmani terus melawan sampai ke kota Wina di Austria. Lalu, tentara Turki Usmani mundur lagi ke Semenanjung Balkan dan menguasai daerah ini selama empat abad. Baru pada abad ke-19, daerah ini bisa melepaskan diri dari kekuasaan Islam. Akan tetapi, kota konstantinopel masih tetap dikuasai dinasty Umayyah dan berubah menjadi Istanbul

A. Perkembangan Ilmu Pengetahuan dan Kebudayaan

Sebenarnya Eropa berhutang budi banyak pada Islam karena ada banyak peradaban Islam yang memengaruhi Eropa, kayak dari spanyol, perang salib dan sisilia. Spanyol merupakan tempat yang utama bagi Eropa dalam mengambil ilmu pengetahuan dan kebudayaan Islam, baik dalam bentuk politik, sosial, ekonomi, kebudayaan dan pendidikan. Beberapa perkembangan Islam antara lain.

1. Bidang politik

Terjadi balance of power karena di bagian barat terjadi permusuhan antara bani Umayyah II di Andalusia dengan kekaisaran karoling di Perancis, sedangkan di bagian timur terjadi perseteruan antara bani Abbasyah dengan kekaisaran Byzantium timur di semenanjung Balkan. Bani Abbasyah juga bermusuhan dengan Bani Umayyah II dalam perebutan kekuasaan pada tahun 750 M. Kekaisaran Karoling bermusuhan dengan kekaisaran Byzanium timur dalam memperebutkan Italia. Oleh karena itu terjadilah persekutuan antara Bani Abbasyah dengan kekaisaran Karoling, sddangkan bani Umayyah II bersekutu dengan Byzantium Timur. Persekutuan baru berakhir setelah terjadi perang salib (1096-1291)

1. Bidang Sosial Ekonomi

Islam telah menguasai Andalusia pada tahun 711 M dan Konstantinopel pada tahun 1453 M. Keadaan ini mempunyai pengaruh besar terhadap pertumbuhan Eropa. Islam berarti telah menguasai daerah timur tengah yang ketika itu menjadi jalur dagan dari Asia ke Eropa. Saat itu perdagangan ditentukan oleh negara-negara Islam. Hal ini menyebabkan mereka menemukan Asia dan Amerika

1. Bidang Kebudayaan

Melalui bangsa Arab (Islam), Eropa dapat memahami ilmu pengetahuan kuno seperti dari Yunani dan Babilonia. Tokoh tokoh yang mempengaruhi ilmu pengetahuan dan kebudayaan saat itu antara lain sebagai berikut.

a. Al Farabi (780-863M)

Al Farabi mendapat gelar guru kedua (Aristoteles digelari guru pertama). Al Farabi mengarang buku, mengumpulkan dan menerjemahkan buku-buku karya aristoteles

b. Ibnu Rusyd (1120-1198)

Ibnu Rusyd memiliki peran yang sangat besar sekali pengaruhnya di Eropa sehingga menimbulkan gerakan Averoisme (di Eropa Ibnu Rusyd dipanggil Averoes) yang menuntut kebebasan berfikir. Berawal dari Averoisme inilah lahir roformasi pada abad ke-16 M dan rasionalisme pada abad ke-17 M di Eropa. Buku-buku karangan Ibnu Rusyd kini hanya ada salinannya dalam bahasa latin dan banyak dijumpai di perpustakaan-perpustakaan Eropa dan Amerika. Karya beliau dikenal dengan Bidayatul Mujtahid dan Tahafutut Tahaful.

c. Ibnu Sina (980-1060 M)

Di Eropa, Ibnu Sina dikenal dengan nama Avicena. Beliau adalah seorang dokter di kota Hamazan Persia, penulis buku-buku kedokteran dan peneliti berbagai penyakit. Beliau juga seorang filsuf yang terkenal dengan idenya mengenai paham serba wujud atau wahdatul wujud. Ibnu Sina juga merupakan ahli fisika dan ilmu jiwa. Karyanya yang terkenal dan penting dalam dunia kedokteran yaitu Al Qanun fi At Tibb yang menjadi suatu rujukan ilmu kedokteran

4. Bidang Pendidikan

Banyak pemuda Eropa yang belajar di universitas-unniversitas Islam di Spanyol seprti Cordoba, Sevilla, Malaca, Granada dan Salamanca. Selama belajar di universitas-universitas tersebut, mereka aktif menterjemahkan buku-buku karya ilmuwan muslim. Pusat penerjemahan itu adalah Toledo. Setelah mereka pulang ke negerinya, mereka mendirikan seklah dan universitas yang sama. Universitas yang pertama kali berada di Eropa ialah Universitas Paris yang didirikan pada tahun 1213 M dan pada akhir zaman pertengahan di Eropa baru berdiri 18 universitas. Pada universitas tersebut diajarkan ilmu-ilmu yang mereka peroleh dari universitas Islam seperti ilmu kedokteran, ilmu pasti dan ilmu filsafat

Banyak gambaran berkembangnya Eropa pada saat berada dalam kekuasaan Islam, baik dalm bidang ilmu pengetahuan, tekhnologi, kebudayaan, ekonomi maupun politik. Hal-hal tersebut antara lain sebagai berikut.

1.  
1. Seorang sarjana Eropa, petrus Alfonsi (1062 M) belajar ilmu kedokteran pada salah satu fakultas kedokteran di Spanyol dan ketika kembali ke negerinya Inggris ia diangkat menjadi dokter pribadi oleh Raja Henry I (1120 M). Selain menjadi dokter, ia bekerja sama dengan Walcher menyusun mata pelajaran ilmu falak berdasarkan pengetahuan sarjan dan ilmuwan muslim yang didapatnya dari spanyol. Demikin juga dengan Adelard of Bath (1079-1192 M) yang pernah belajar pula di Toledo dan setelah ia kembali ke Inggris, ia pun menjadi seorang sarjan yang termasyhur di negaranya
2. Cordoba mempunyai perpustakaan yang berisi 400.000 buku dalam berbagai cabang ilmu pengetahuan
3. Seorang pendeta kristen Roma dari Inggris bernama Roger Bacon (1214-1292 M) mempelajari bahasa Arab di Paris (1240-1268 M). Melalui kemampuan bahasa Arab dan bahasa latin yang dimilikinya, ia dapat membaca nasakah asli dan menterjemahkannya ke dalam berbagai ilmu pengetahuan, terutama ilmu pasti. Buku-buku asli dan terjemahan tersebut dibawanya ke Universitas Oxford Inggris. Sayangnya, penerjemahan tersebut di akui sebagai karyanya tanpa menyebut pengarang aslinya. Diantara bukuyang diterjemahkan antara lain adalah Al Manzir karya Ali Al Hasan Ibnu Haitam (965-1038 M). Dalam buku itu terdapat teori tentang mikroskop dan mesiu yang banyak dikatakan sebagai hasil karya Roger Bacon.
4. Seorang sarjana berkebangsaan Perancis bernama Gerbert d’Aurignac (940-1003 M) dan pengikutnya, Gerard de Cremona (1114-1187 M) yang lahir di Cremona, Lombardea, Italia Utara, pernah tinggal di Toledo, Spanyol. Dengan bantuan sarjana muslim disana , ia berhasil menerjemahkan lebih kurang 92 buah buku ilmiah Islam ke dalam bahasa latin. Di antara karya tersebut adalah Al Amar karya Abu Bakar Muhammad ibnu Zakaria Ar Razi (866-926 M) dan sebuah buku kedokteran karangan Qodim Az Zahrawi serta buku Abu Muhammad Al baitar berisi tentang tumbuhan. Sarjana-sarjana muslim tersebut mengajarkan penduduk non muslim tanpa membeda-bedakan agama yang mereka anut
5. Apabila kerajaan-kerajaan non muslim mengalahkan kerajaan-kerajaan Islam, maka yang terjadi adalah pembumihangusan kebudayaan Islam dan pembantaian kaum muslim. Akan tetapi, apabila kerajaan-kerajaan Islam yang menguasai kerajaan non muslim, maka penduduk negeri tersebut diperlakukan dengan baik. Agama dan kebudayaan merekapun tidak terganggu
6. Banyak sarjana-sarjana muslim yang berjasa karena telah meneliti dan mengembangkan ilmu pengetahuan, bahkan karya mereka diterjemahkan ke dalam bahasa Eropa meskipun ironisnya diakui sebagai karya mereka sendiri.

Akibat atau pengaruh dari perkembangan ilmu pengetahuan Islam ini menimbulkan kajian filsafat Yunani di Eropa secara besar-besaran dan akhirnya menimbulkan gerakan kebangkitan atau renaissans pada abad ke-14. berkembangnya pemikiran yunani ini melalui karya-karya terjemahan berbahasa arab yang kemudian diterjemahkan kembali ke dalam bahasa latin. Disamping itu, Islam juga membidani gerakan reformasi pada abad ke-16 M, rasionalisme pada abad ke-17 M, dan aufklarung atau pencerahan pada abad ke-18 M.

Nasib kaum muslim di Spanyol sepeninggal Abu Abdullah Muhammad dihadapakan pada beberapa pilihan antara lain masuk ke dalam kristen atau meninggalkan spanyol. Bangunan-bangunan bersejarah yang dibangun oleh Islam diruntuhkan dan ribuan muslim mati terbunuh secara tragis. Pada tahun 1609 M, Philip III mengeluarkan undang-undang yang berisi pengusiran muslim secara pakasa dari spanyol. Dengan demikian, lenyaplah Islam dari bumi Andalusia, khusunya Cordoba yang menjadi pusat kebudayaan dan ilmu pengetahuan di barat sehingga hanya menjadi kenangan.

B. Hikmah Sejarah Perkembangan Islam pada Abad Pertengahan

Ada beberapa manfaat yang dapat kita ambil dari sejarah perkembangan Islam pada abad pertengahan, diantaranya sebagai berikut.

1. Meskipun Bani Umayyah telah dihancurkan oleh Bani Abbasyah, perluasan wilayah Islam masih terus dilanjutkan sehingga dengan demikian kebudayaan Islam tetap berkembang di Eropa. Hal tersebut menandakan bahwa semangat kaum muslim dalam meraih cita-cita sangat tinggi sehingga melahirkan persatuan dan kesatuan yang sangat dibutuhkan dalam mewujudkan hal tersebut. Hal ini terbukti dalam setiap perluasan wilayah, kaum muslim mampu menguasai Spanyol dalam waktu sekitar delapan abad (711-1492 M) dan menguasai Semenanjung Balkan sekitar 4 abad (1453-1918 M)
2. Niat yang tulus ketika melakukan sesuatu karena Allah sangat dibutuhkan, ketika niat telah berubah menjadi orientasi terhadap kekuasaan atau harta, maka dengan cepat kehancuran akan menimpa. Hal tersebut telah banyak dibuktikan pada peristiwa-peristiwa runtuhnya daulah bani Umayyah, bani Abbasyah, dan bani Umayyah II di Andalusia serta kerajaan atau pemerintahan lain dimanapun berada
3. Penaklukan wilayah yang demikian luas dilakukan oleh kaum muslim saat itu berdasarkan pada permintaan penduduk suatu negara yang ditindas oleh pemimpin mereka sendiri. Hal tersebut dikarenakan penduduknya berada dibawah pemerintahan yang zalim atau karena kerajaan tersebut telah mengganggu wilayah-wilayah Islam. Oleh karena itu, kaum muslim telah bertindak sebagai pembebas masyarakat suatu negara dari tindakan pemerintah mereka yang sewenag-wenang dan bukan bertindak sebagai penjajah atas suatu negara. Penduduk yang dibebaskan tetap diberikan keleluasan untuk menjalankan agama atau kepercayaan mereka masing-masing meskipun upaya penyebaran agama Islam senantiasa dilakukan.
4. Islam memiliki kontribusi yang sangat besar dalam upaya menyebarkan ilmu pengetahuan dan tekhnologi. Eropa memiliki kemajuan saat ini salah satunya disebabkan jasa sarjana-sarjana muslim yang telah menjadi mata rantai perkembangan ilmu pengetahuan kepada masyarakat Eropa saat itu.

C. Penghayatan terhadap Sejarah Kebudayaan Islam pada Abad Pertengahan

Ada banyak perilaku yang pat diterapkan sebagai cerminan penghayatan terhadap sejarah perkembangan Islam di abad pertengahan yakni antara lain sebagai berikut.

1. Sejarah merupakan pelajaran bagi manusia agar di kemudian hari perilaku atau perbuatan kaum muslim yang membuat kaum muslim dan umat manusia lainnya menderita tidqak terulang lagi. Lemahnya persatuan umat Islam dapat dijadikan celah pihak lain untuk memundurkan peran kaum muslim, baik dari kancah perekonomian maupun politik. Oleh karena itu, umat Islam hendaknya mampu mengubah tata kehidupannya yang seimbang antara kepentingan duniawi dan ukhrawinya serta senantiasa meningkatkan wawasan keislamannya melalui rujukan Al Qur’an dan Hadis.
2. Umat Islam harus mengambil pelajaran dari negara barat. Mereka semula jauh tertinggal dibandingkan dengan kemajuan peradaban dan ilmu pengetahuan umat Islam, tetapi kemudian mereka dapat mengejar kemajuan peradaban dan ilmu pengetahuan umat Islam. Invasi Islam terhadap Eropa seperti andalusia dan Semenanjung Balkan selama berabad-abad telah memotifasi barat untuk mempelajari ilmu pengetahuan, tekhnologi dan kebudayaannya
3. Keberadaan cendekiawan pada masa perkembangan Islam abad pertengahan seperti Ibnu Sina, Al Farabi, dan Ibnu Rusyd haurs menjadi inspirasi dan inovasi bagi uamt Islam untuk terus mempelajari berbagai disiplin ilmu demi melanjutkan cita-cita perjuangan tokoh-tokoh muslim pada abad pertengahan tersebut sehingga Islam mampu membawa rahmat bagi seluruh dunia.

D. Pengaruh Sejarah Islam Abad Pertengahan terhadap Umat Islam Indonesia

Jauh sebelum Islam masuk ke Indonesia, bangsa Indonesia telah memeluk agama hindu dan budha disamping kepercayaan nenek moyang mereka yang menganut animisme dan dinamisme. Setelah Islam masuk ke Indonesia, Islam berpengaruh besar baik dalam bidang politik, sosial, ekonomi,maupun di bidang kebudayaan yang antara lain seperti di bawah ini.

1. Pengaruh Bahasa dan Nama

Bahasa Indonesia sebagai bahasa persatuan sangat banyak dipengaruhi oleh bahasa Arab. Bahasa Arab sudah banayk menyatu dalam kosa kata bahasa Indonesia, contohnya kata wajib, fardu, lahir, bathin, musyawarah, surat, kabar, koran, jual, kursi dan masker. Dalam hal nama juga banyak dipakai nama-nama yang berciri Islam (Arab) seperti Muhammad, Abdullah, Anwar, Ahmad, Abdul, Muthalib, Muhaimin, Junaidi, Aminah, Khadijah, Maimunah, Rahmillah, Rohani dan Rahma.

1. Pengaruh Budaya, Adat Istiadat dan Seni

Kebiasaan yang banyak berkembang dari budaya Islam dapat berupa ucapan salam, acara tahlilan, syukuran, yasinan dan lain-lain. Dalam hal kesenian, banyak dijumpai seni musik seperti kasidah, rebana, marawis, barzanji dan shalawat. Kita juga melihat pengaruh di bidang seni arsitektur rumah peribadatan atau masjid di Indonesia yang banayak dipengaruhi oleh arsitektur masjid yang ada di wilayah Timur Tengah.

1. Pengaruh dalam Bidang Politik

Pengaruh inin dapat dilihat dalam sistem pemerintahan kerajaan-kerajaan Islam di Indonesia seperti konsep khilafah atau kesultanan yang sering kita jumpai pada kerajaan-kerajaan seperti Aceh, Mataram. Demak, Banten dan Tidore

1. Pengaruh di bidang ekonomi

Daerah-daerah pesisir sering dikunjungi para pedagang Islam dari Arab, Parsi,dan Gujarat yang menerapkan konsep jual beli secara Islam. Juga adanya kewajiban membayar zakat atau amal jariyah yang lainnya, seperti sedekah, infak, waqaf, menyantuni yatim, piatu, fakir dan miskin. Hal itu membuat perekonomian umat Islam semakin berkembang

A Dynamic Model for Cash Waqf Management as One of The Alternative Instruments for the Poverty Alleviation in Indonesia

Dian Masyita (dianmasyita@fe.unpad.ac.id)

Muhammad Tasrif (tasrif_muhammad@yahoo.com )

Abdi Suryadinata Telaga (abdi.suryadinata@astra-honda.com)

Abstract

This research tries to offer a design of the cash waqf management system in a system dynamics model. The Cash Waqf Management is expected to become one of the alternative instruments for the poverty alleviation programs in Indonesia. These programs require huge amount of fund that cannot be provided thoroughly by the government. Therefore, initiation of new sources of fund for such a program is inevitable. In the Islamic socioeconomic concept, there is a source of social fund that is economically and politically free of charge, namely cash waqf. In this concept, Nadzir (cash waqf fund manager) collects the fund from Waqif (cash waqf payer) and invest the money in the real sector and in any syariah-based investment opportunities. Nadzir will then allocate profits and returns gained from the investments to poverty alleviation programs. Nadzir is obliged to maintain the amount of fund in such a way that it does not go below the initial amount. Therefore,

Nadzir not only should be highly capable, but also needs an experienced financial institution in helping SMEs development efforts. Using the system dynamics methodology, we try to design the structure of cash waqf system and simulate the behavior of cash waqf model.

1. Preface

In the early 2005, the Indonesian poverty rate has been still discouraging. The poverty indices are still higher than those of the previous years. The economic crisis beginning in 1997, does not end until now. In addition, the Tsunami Disasters destroyed two provinces in Indonesia i.e Nanggroe Aceh Darussalam and North Sumatra in the end of the year 2004. Based on the Statistics Central Bureau (BPS)’s data, there are about 40 million Indonesian people who are under the poverty line.

Indonesia has come into debt trap made by the Indonesian government and the private sectors. Large amount of debt has weakened Indonesian economy for the past seven years. Currently, Indonesian foreign debt is approximately USD 130 billions, which consists of government foreign debt of USD 70 billions and private sector’s foreign debt of USD 60 billions. In addition, domestic government debt has reached IDR 650 trillions level. Nevertheless, the amount of the debt has been inceasing since Consultative Group on Indonesia (CGI) meeting in Bali (January 2003) decided to issue a USD 2,7 billion loan to Indonesia.

Meanwhile, the government has been confronted with the deficit budget almost every year since 1997, which means that the government may find it difficult to cover its routine expenditures. Those regular balance sheet items require so large amount of fund that government cannot provide adequate fund for other strategic needs, such as good education, appropriate health, poverty, and SME’s development. Mismanagement of debts is the largest of all factors that make Indonesian go into crisis. Consequently, all of citizens and their offspring have to carry the heavy burden of that debt.

2. Problem Identification

One of potential solutions to the necessity of sufficient fund for public needs is waqf fund from people’s donation. People donate their money as cash waqf by purchasing cash waqf certificate. The gathered fund will be then invested in various investment portfolio and the profit of which can be spent for the above mentioned public necessities. The gained profit will also be used for funding poverty alleviation programs, while the principal of funds will be reinvested in various highly profitable investment opportunities.

Waqif donates his/her money as waqf fund to Mauquf’alaih (a person who is entitled to get benefit from waqf fund) through Nadzir (a person/an institution being in charge for managing waqf fund and distributing returns of waqf investment). Only gains of the invested waqf fund will be delivered to Mauquf’alaih. The principal of funds keep being invested in potential investment opportunities. In relation to its role as waqf fund investment manager, Nadzir on behalf of Waqf Institution may allocate some waqf funds to financial portfolio and finance SMEs’ businesses on the basis of profit-loss sharing system.

The larger the investment returns, the more fund can be allocated to poverty alleviation program. In some countries, waqf fund management has reduced poverty effectively and enhanced people’s welfare, by providing additional fund for education & health development programs, cheap houses & public facilities development programs, and so forth.

3. Objectives of Research

This research is expected to be able to find out the potency of an Islamic innovation financial instrument, expecially cash waqf, to alleviate the poverty in Indonesia. This research also tries to offer a design of the cash waqf management system in a system dynamics model. Using the system dynamics methodology, we try to know the structure of cash waqf system and simulate the behaviour of cash waqf model. On the next part of this paper, we will discuss definition, law, and history of cash waqf to recognize the concept and its potential benefit.

4. Problem Definition : Cash Waqf

Previously, waqf of building and land are the most popular forms of waqf. Nowadays, cash waqf has become increasingly well-known, particularly because of its flexibility, which allows distribution of the waqf’s potential benefit to be benefited by the poor anywhere. Cash waqf was firstly introduced in Ottoman era in Egypt. Professor Mannan then sosialized cash waqf in Bangladesh through Social Investment Bank Limited (SIBL). SIBL issues Cash Waqf Certificate to collect funds from the rich and distributes gains of the managed funds to the poor.

Like those of Bangladesh, most of Indonesian people are poor. Characteristic of communities in both countries are also similar. Therefore, effectiveness of cash waqf certificate program to help reduce poverty in Bangladesh gives hopes that analogous program can be successfully implemented in Indonesia.

Fatwa Commission, Board of Indonesian Moslem Scholars, responded the necessity of cash waqf certificate program in Indonesia by issuing the following fatwa (dated on 11 May 2002):

1. Cash Waqaf (Waqf al-Nuqud) is waqf donated by individual, group of individuals, or legal entity, in cash.
2. Cash waqf includes securities.
3. Money donated as waqf is not forbidden (jawaz).
4. Cash waqf can only be distributed and allocated for anything not against syariah (Islamic law).
5. Existence of waqf fund should be conserved. Waqf fund cannot be transferred to anyone.

4.1. Cash Waqf Certificate Framework

Waqif is a person who donate some money as waqf by purchasing cash waqf certificate. The certificate can be bought in the name of family member, even if he/she is already dead. Waqif expects return of the managed fund to be assigned for certain purpose, e.g. public facility development, poor people rehabilitation, etc.

Nadzir invests the collected fund in various investment portfolios. Nadzir may (1) invest the fund in syariah (non interest) banking products of both domestic and overseas banks, (2) finance selected businesses, (3) establish new prospective businesses, or (4) finance small and medium scale enterprises (SMEs).(see Figure 1)

4.2. Cash Waqf Certificate

According to Mannan (1998), the objectives of cash waqf certificate are;

1. to equip banks and other waqf management institutions with cash waqf certificate,
2. to help collect social savings through cash waqf certificate (cash waqf certification can be done in the name of other beloved family member to strengthen familiy integration among rich families),
3. to help transform the collected social savings to social capital, as well as to help develop social capital market,
4. to increase social investment,
5. to encourage rich communities’ awareness on their responsibility for social development in their environment,
6. to stimulate integration between social security and social welfare. As cash waqf practice has not yet been popular in Indonesia, cash waqf management institutions in Indonesia can replicate successful practices from other countries, such as Bangladesh.

In addition to the above-mentioned objectives of cash waqf practice, profit of the managed waqf fund can be allocated for: (see figure 2)

1. Poor Family Rehabilitation.: Enhancing poor people’s welfare
2. Educational and Cultural Development.: Supplying free books, Funding relevant research and development, Improving educational programs, Scholarship, Grant for schools, Preserving and developing cultural values
3. Health and Sanitation.: Health and Sanitation for poor people, Establishing health center, Providing cheap medicines with appropriate quality
4. Social services
5. Building facilities for religious activity
6. Fixing social facilities. 

Aspects involved when purchasing Cash Waqf Certificate include:

• One’s own welfare (in this life and life after death)
• Family’s welfare (in this life and life after death)
• Social welfare and social investment
• Developing social awareness: social security for poor people and social harmony for rich people.

Contribution of cash waqf to sosio-economic development in developing countries is significant. Fund collected through cash waqf certificate program can be allocated to social-related development areas (e.g., agriculture, education, health, and infrastructure), urban poverty alleviation program, and other public service development. This opportunity in turn will reduce poverty level and will allow people help themselves (Mannan,1998).

Cash waqf certificate will be issued in various denominations, e.g. IDR (Rupiah)-100-million, IDR-50-million, IDR-10-million, IDR-5-million, and IDR-1-million, in order that more prospective donors can afford them. Name of the donor (it can be on behalf of dead individual) and specific purpose of the donation (e.g. for educational services, health assistance, or other welfare enhancement efforts) will be stated on the certificate.

4.3. Requirements for Nadzir

Utomo (2001) states that cash waqf management institution is a legal entity, and therefore should fulfil some requirements, which are called rukun waqf. The rules can be explained as follows:

1. Al-waqif is a person who donates waqf fund. He/she should be health physically and mentally. The decision to donate should not be made under pressure.
2. Assets or fund donated as waqf are technically called al-mawquf in fiqh (Islamic law). Existence of mawquf should be clear and durable. Therefore, people can benefit from the waqf for long time.
3. Those who are entitled to benefit from return of waqf fund management are almawquf ‘alaih.
4. The way of a waqif stating his/her asset or fund as waqf is called sighah. Dr.Muhammad Anwar Ibrahim in his paper titled “Wakaf Dalam Syariat Islam (Waqf in Islamic Law)”1 explains conditions that should be satisfied in managing cash waqf.

They are as follows:

1. Nadzir is a person/entity that is assigned to manage waqf fund.
2. As a matter of fact, waqif has the right to determine person or institution that will manage his/her waqf fund. If a waqif does not appoint a nadzir, then Kadi (Islamic Judge) will do it for him/her. [Asy-Syarbini op.cit p. 396].
3. Fiqh experts determine flexible requirements for being a Nadzir. Fit and proper nadzir should be capable of managing waqf fund to be productive source of capital. If a nadzir cannot do his job properly, Kadi must replace him with someone else after explaining reasons for the replacement.
4. Nadzir’s responsibilities include: Maintaining waqf asset, preparing waqf asset for rent, managing waqf fund, collecting waqf investment returns and distributing them to al-mawquf ‘alaih. Fiqh expert can expand these authorities as needed.
5. Nadzir’s division of work. A waqif can appoint more than one nadzir to handle his/her waqf fund. If a waqif does so, each nadzir will conduct a more specific job. Asset maintenance, investment management, and investment return distribution will be carried out by different nadzir. If there are more than one nadzir for one job, a decision can only be made after necessary consultation among them.[Asy-Syarbini op.cit. hal 410-411].
6. Salary for Nadzir. Waqif may determine certain amount of money or percentage of waqf investment return as compensation for nadzir. A nadzir will not receive any compensation if he quits the job or gets fired. [Ibid].
7. A Nadzir cannot take any part of waqf fund.[Ibid hal 412].

As the appointed nadzir, fund manager may carry out the followings to sustain investment return of cash waqf fund:

a.      Invest cash waqf fund in various domestic or global syariah portfolios with good prospect.

b.      Invest cash waqf fund in real sectors or businesses whose sources, process, and outputs are in line with syariah. Fund can be invested in existing business or in newly initiated one. Nadzir may establish new businesses that provide public services, such as convenience stores, hypermarkets, basic food stores, universities, hospitals, etc. This will generate more job opportunities and appropriately satisfy some people’s basic needs.

c.      Allocate some of the collected fund as profit sharing-based loan to selected small businesses. Technical and managerial assistance are required to accompany this investment. If this investment runs well, nadzir will not only generate returns, but also help accelerate poor people’s economic development.

Nadzir should also pay attention on some points described below:

d.      Transparency. Nadzir has to manage cash waqf fund transparently and regularly make financial and performance reports, which are accessible by waqif.

e.      Productivity. Nadzir has to be able to manage the fund productively, so that disadvantaged people can benefit form cash waqf fund continuously.

f.       Trustable. Integrity of a nadzir is crucial. It has to avoid any business opportunity and process that can lead to moral hazard. All proposed business activities should be assessed in terms of Islamic law.

4.4. Cash Waqf Management Institution’s Duties and Responsibilities

Waqf Management Institution should manage waqf fund in such a way that the collected fund become more and more productive. The more the waqf investment return, the more mawquf ‘alaih benefit from waqf fund. According to fiqh, nadzir, as a waqf fund manager, is obliged to handle the fund productively (Utomo, 2001).

Furthermore, Manshur bin Yunus al-Bahuty states in Syarh Muntaha al-Adaab (p. 504-505) that nadzir is responsible for maintaining, expanding, and developing waqf assets in order that they can provide some income such as investment return, rent fee, agricultural products, etc.

4.5. Waqif’s Requirements

Waqif has a right to settle on particular requirements related to his/her waqf. Such a requirement is classified in two groups, i.e. (1) requirement that goes in line with syariah, and (2) condition that does not align with syariah. Nadzir does not have to obey the latter, even if waqif has agreed to donate his fund as waqf. Any rule or requirement should not violate Islamic law. Fiqh experts affirm that power of waqif’s requirement status should not contravene Allah the Almighty’s rule.

5. Research Methodology

This research used system dynamics methodology to capture dynamic phenomenon of a system, in which variables change simultaneously as time moves. It also carried out a survey on possible implementation of cash waqf in Jakarta and Jawa Barat. The survey concluded that most people did not trust any existing government institution to manage cash waqf fund and control its investment activities, especially because cash waqf management will involve large amount of endowment funds. Most of them also recommend that if a special purpose institution is established to manage cash waqf fund, it has to be highly capable of detecting any potential dishonesty and assessing performance of cash waqf fund manager, i.e. nadzir. Therefore, it’s necessary to design an instrument which is able to control the cash waqf management. Based on the survey’s result, using exclusively designed computer program then simulated some scenarios of cash waqf implemention to formulate some policy concepts applicable in Indonesia. The computer program was designed to help the policy makers (1) estimate cash waqf potential in alleviating poverty in Indonesia, (2) supervise performance of nadzir or waqf fund management institution, and (3) identify appropriate policies conducive to poverty alleviation programs.

Since there was no similar study preceding the research, some assumptions were applied. The ability of three national TV corporations (RCTI, SCTV, and Indosiar) to collect donation amounting IDR 2 billions in two nights in 2000 and the other charity programs to collect donation in 2001-2005 were used as an assumption basis of amount of fund could be gathered by cash waqf management institution. This research also used data supplied by Biro Pusat Statistik Republik of Indonesia (National Beaurau for Statistics), BKKBN Republic of Indonesia (National Coordinating Agency for Family Planning) and Islamic Financial Institution.

5.1 Limitation of Research

This research put more emphasived on financial management expecially raising and investing of cash waqf funds. The duties of Nazir, as a cash waqf fund manager, are to increase the cash waqf funds and invest those funds in profitable portfolios. As we know, the poverty alleviation problems are complicated. However, they need multidiscipline knowledge to formulate and figure out the solutions. With this research we want to try to make an early design of poverty alleviation in the financial viewpoint using system dynamics modeling.

6. General Description of System Conceptualization

The system conceptualization involves establishing model boundary, identifying causal relationships and policy framework2. In this research the model boundary includes all relevant factors that are considered important in the problem context. The model comprises six interrelated components in the cash waqf management as shown as Figure 3.

As depicted in the above causal loop, the model links among the rich, cash waqf fund, investment portfolios, investment profits, available funds for the poverty programs and the poor. A general system of cash waqf model, derived from a macro-view of model above, consists of six sectors i.e:

7.      The cash waqf fund raising sectors (the rich links to the collected-cash waqf funds),

8.      The Islamic financial portfolios sectors,

9.      The global fund management sectors,

10.  The direct investment in large and medium scale enterprises,

11.  The microfinance sectors. (number 2,3,4,5 are investment portfolios which link to investment profits)

12.  The distribution sectors of the profits of cash waqf investment. (Investment profits link to the poor through the poverty programs).

The Interrelationship among variables can be seen in Figure 4.

The interrelationship among the six sectors is described as follows:

1) The cash waqf fund raising sectors

The responsibilities of this sector are collecting the cash waqf fund from the waqif and then distributing them to the investment portfolios. The profits of the investment will be distributed to the poor through the poverty alleviation programs. At which the profits will be distributed depend on the waqif requests such as the education, infrastructure, family rehabilitation, public health & sanitation.

In the cash waqf raising sectors, there are several causal relationship among the rich, who have the potency as a waqif, the gathered cash waqf fund, the invested funds to various portfolios, and the gained profits from investment which will be distributed to the poor. (see figure 5a and 5b).

2) The Islamic financial portfolios sectors

The responsibilities of this sector are investing the cash waqf efficiency and effectively. The gathered cash waqf will be then invested by Nazir, a fund manager, in Islamic financial portfolios. The structure of Islamic banking and finance is firmly rooted in the Qur’an and the teachings of Muhammad which is called a Islamic Law3. Islamic Law has derived from revealed text a web of interrelated norms prohibiting interest-taking and undue speculative practices. Generally, these portfolios are divided into four kinds i.e

a). Islamic mutual funds,

b). Islamic Capital Market Indices,

c). Islamic Banking Products (Mudharaba Deposits),

d) Islamic Bond. All of them are issued by Indonesian financial institutions.

 

The gained profits will be distributed to meet the poor’s basic needs and increase the quality of the poor’s life. Meanwhile, the principal keep being invested in potential investment opportunities. (see Figure 6a and 6b).

3) The global fund management sectors

The responsibilities of this sector are to invest the cash waqf fund in the global financial portfolios as known a global funds management such as Amanah Fund, Lariba Fund, Islamic Indices, etc. A fund manager should choose the portfolios not only high return but also safety. The better Nazir choose the investment portfolios, the higher profits will be gained and the more funds will be acquaired by the poor.

The principal then will be reinvested in various highly profitably investment opportunities. (see Figure 7a and 7b)

4) The direct investment in large and medium scale enterprises

A cash waqf fund manager, Nazir, allocates the gathered funds to the big companies in the forms of stocks which the gained profit are dividends or capital gains. The nature of this sector is the long term. The other forms of direct investment are building the new waqf buildings and maintaining the existings waqf assets either for social projects or the commercial projects. (See Figure 8a and 8b.)

 Figure 8a. Causal loop of the direct investment to real sectors

  

 

Figure 8b. Flow Diagram of the direct investment to real sectors

5) The Microfinance Sectors

The microfinancing programs, which used the loss-profit sharing, are one of the most important sectors for poverty alleviation. Most of funds collected through cash waqf certificate issues will be allocated as loan for microenterprises. This microcredit program should particularly be aimed at helping poor people initiate their business and enhance their quality of life, accordingly. Nevertheless, merely supplying them with capital is not sufficient, since most of them do not have adequate knowledge and skill to choose and to run a business that is suitable to their condition. Consequently, relevant business technical assistance is needed to help them survive.

Family’s business activities have significantly influenced economy of a community, particularly in developing countries. Big manufacturing companies indeed dominate mass production processes, both for goods and services, but most of enterprises are initiated by family. In addition, family’s consumption behaviour also affects production and marketing activities, as well as other business activities.

Government’s programs for family business empowerment has to do with informal sector development efforts, as most of family businesses are operated in non formal format and business system. Family businesses, which absorb the largest number of employee, are also found mostly in small and medium scale. In most developing economies, these small and medium enterprises (SMEs) have limited access to formal financing practices, as well as to adequate government’s technical assistance. (see figure 9a and 9b)

6) The profits of cash waqf investment distribution sectors

The gained profits from the various portfolios will be distributed to the poor through the poverty alleviation programs such as basic needs, health services, sanitations, education, natural disasters victims, etc. The principal of cash waqf will be reinvented to various portfolio opportunities. (see figure 10a and 10b).

Figure 10b. Flow Diagram of the cash waqf profits distribution sectors

7. The Cash Waqf Management Control

The survey concluded that most people did not trust any existing government institutions to manage cash waqf fund and control cash waqf investment activities, especially because cash waqf management will involve large amount of endowment funds. Most of them also recommend that if a special purpose institution is established to manage cash waqf fund, it has to be highly capable of detecting any potential dishonesty and assessing performance of cash waqf fund manager, i.e. nadzir. Therefore, it’s necessary to design an instrument which is able to control the cash waqf management. This model tries to design a control tools which is able to detect the human error in decision making either mismanagement or dishonesty quickly. (see figure 11.)

The collected cash waqf fund from the waqif will be distributed to the various portfolios and then the usage will be controlled periodically. The early warning system will be prepared by the system in order to the amount of cash waqf fund will not go below the initial amount. It is the difference of the cash waqf from the other sources of funds. Gold standard can be used as the currency standard because of its stability. (see figure 11a-d).

The waqif and public can control or monitor the cash flow of cash waqf investment. If mismanagement and dishonesty occurred, the simulation result could demonstrate the deviation. (see figure 11e-f)

Figure 11f. The Simulation Result (long term)

 8. The Potency of Cash Waqf for the Poverty Alleviation Programs

It can be concluded from the system that the larger the amount of cash waqf collected, the larger the amount of fund can be invested in highly cost effective profit sharing-based portfolios, and the larger the amount of return can be distributed to poor people. The more fund allocated to finance micro business, the sooner poverty in Indonesia can be alleviated. (see Figure 12).

Figure 12. Flow Diagram of The Potency of Cash Waqf for The Poverty Alleviation

9. The Simulation Result

Since there has been no similar study preceding the research, some assumption were applied. The ability of five national TV corporations (RCTI, SCTV, Indosiar, MetroTV and Lativi) to collect donation amounting IDR 3 billions in two night in 2003 was used as an assumption basis of amount of fund could be gathered by cash waqf management institution. It was then assumed that the cash waqf institution could obtain IDR 20 millions a day in form of cash waqf from various components of Indonesian people. The study also assumed that the gathered fund would grow 25% annually and it would be invested in Islamic financial products with profit sharing- based various rate of return.( see figure 13).

 Figure 13. Rate of return of Cash Waqf Investment Portfolio

Using the above assumption and data supplied by Biro Pusat Statistik (National Beaurau for Statistics) , BKKBN (National Coordinating Agency for Family Planning) and syariah financial institution in Indonesia, the computer-based data process resulted in approximation of cash waqf investment return 25% annum. Such an amount of fund is expected to be available for the poverty alleviation efforts in Indonesia, especially through microfinance distribution program. If this plan can be implemented smoothly and if those assisted micro enterprises can get well run maximum of 8 years after being financed, it will take approximately 12500 days (35 years) to eliminate poverty and 22400 days (63 years) to increase quality of live for Indonesian population. (see figure 14a-b) Poor people, in this study, are those with very low quality of life. In other words, poor people are not only those who cannot feed once a day, but also those who cannot afford proper health and education services.

Based on the study result above and various scenarios proposed, if the gathered fund through cash waqf certificate increase i.e. IDR 50 million in a day, it will take approximately 11000 days (30 years) to eliminate poverty and 21000 days (57 years) to increase quality of live for Indonesian population with the assumption the others constant. (see figure 15a)

Figure 15a. Simulation Result (based on IDR 50 million in a day compare with IDR 20 million in a day)

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