Innovation in Islamic Social Finance: Integration of Digital Waqf and Sharia Crowdfunding in Indonesia

Authors

  • Didih Muhamad Sudi STAI Syekh Manshur, Pandeglang

DOI:

https://doi.org/10.58812/wsiss.v3i02.1834

Keywords:

Digital Waqf, Sharia Crowdfunding, Islamic Social Finance, Sustainable Development, Indonesia

Abstract

This study explores the integration of digital waqf and sharia crowdfunding in Indonesia, focusing on its potential to enhance Islamic social finance and contribute to sustainable development. Through qualitative analysis of interviews with five key informants, the research identifies the opportunities and challenges of combining these two financial instruments. The findings highlight the potential to expand access to funding, increase transparency, and align with Islamic values of charity and social justice. However, challenges such as regulatory uncertainty, technological limitations, and trust concerns need to be addressed for successful implementation. The study concludes that the integration of digital waqf and sharia crowdfunding can significantly contribute to social welfare and sustainable development in Indonesia, provided that regulatory frameworks are strengthened, technological infrastructure is improved, and public awareness is raised.

References

[1] B. S. Sairally, “Embracing New Horizons,” Int. J. Islam. Financ. Sustain. Dev., vol. 16, no. 3, pp. 1–3, 2024.

[2] A. B. Soage, “An overview of Islamic finance: History, instruments, prospects,” J. Sociol. Theory Relig., vol. 9, pp. 60–81, 2020.

[3] S. Samsudin, F. Fajrillah, M. A. Lubis, A. T. Lubis, S. Siregar, and Y. S. J. Nasution, “Exploring Islamic Social Finance Practices in Muslim Countries Outside ASEAN,” J. Penelit. Medan Agama, vol. 15, no. 2, pp. 189–198, 2024.

[4] A. Akhter, M. Y. Javed, and J. Akhter, “Research trends in the field of Islamic social finance: a bibliometric analysis from 1914 to 2022,” Int. J. Ethics Syst., 2023.

[5] N. H. Nuradi and H. Khatimah, “Inovasi Wakaf di Era Digital dalam Mengoptimalkan Potensi untuk Pembangunan Berkelanjutan di Negeri Berkembang,” El-Mal J. Kaji. Ekon. Bisnis Islam, vol. 5, no. 6, pp. 3546–3559, 2024.

[6] L. Mutmainah and N. Huda, “Waqf blockchain in indonesia,” Al-Awqaf J. Wakaf Dan Ekon. Islam, vol. 14, no. 1, pp. 31–49, 2021.

[7] H. WAHYUDI, C. P. T. TUBARAT, N. RODLIYAH, A. KUSNADI, and S. M. E. I. LENY, “The Nexus of Crowdfunding and e-Wakaf to Islamic Fintech in Indonesia in the Era of Industrial Revolution 5.0,” J. Ecohumanism, vol. 4, no. 1, pp. 208–219, 2025.

[8] N. Harrieti and A. Suwandono, “Aspek Hukum Waqf FinTech: Perkembangan dan Tantangannya di Indonesia,” Amnesti J. Huk., vol. 6, no. 1, pp. 116–129, 2024.

[9] I. H. Achsien and D. L. Purnamasari, “Islamic crowd-funding as the next financial innovation in Islamic finance: Potential and anticipated regulation in Indonesia,” Eur. J. Islam. Financ., no. 5, 2016.

[10] M. Mukhid, “Islamic social finance: Exploring zakat, waqf, and sadaqah in economic development,” Econ. Stud. Bank. J., vol. 1, no. 2, pp. 46–52, 2024.

[11] Z. Mahomed and M. Hydara, “Applying an integrated Islamic social finance model for the empowerment of women farmers in The Gambia,” in Islamic Finance in Africa, Edward Elgar Publishing, 2022, pp. 287–306.

[12] M. Abubakar, “Social Empowerment Through Islamic Finance,” in Handbook of Research on Theory and Practice of Global Islamic Finance, IGI Global, 2020, pp. 115–128.

[13] A. Marzuki and A. C. Worthington, “Social responsibility in Islamic finance,” in Routledge Handbook of Social and Sustainable Finance, Routledge, 2016, pp. 193–203.

[14] S. Ali and A. N. Jadidah, “Peran Teknologi dalam Optimalisasi Pengumpulan dan Distribusi Zakat Dan Wakaf,” El-Faqih J. Pemikir. dan Huk. Islam, vol. 10, no. 2, pp. 400–414, 2024.

[15] A. O. Abdulquadri and Y. O. Quadri, “ZAKAT AND WAQF: DEVELOPMENTAL ROLE OF MODERN APPROACHES TO ISLAMIC PHILANTHROPY AND ENDOWMENTS,” 2025.

[16] E. Askouri, “The Role of Waqf in Achieving the Purposes of Islamic Law,” Iqtisad Reconstr. Justice Welf. Indones., vol. 11, no. 1, pp. 101–120, 2024.

[17] S. Nivoix and F. Z. Ouchrif, “Is crowdfunding Sharia compliant?,” in International Perspectives on Crowdfunding: Positive, Normative and Critical Theory, Emerald Group Publishing Limited, 2016, pp. 185–198.

[18] R. E. Pratiwi, N. Meirani, K. Khumairah, M. S. Saharan, and H. E. Hassan, “Crowdfunding: As an Alternative to Islamic Funding,” J. Bus. Stud. Manag. Rev., vol. 6, no. 2, pp. 109–117, 2023.

[19] H. Baber, “Crowdfunding framework in Islamic finance,” in Handbook of Research on Theory and Practice of Global Islamic Finance, IGI Global, 2020, pp. 307–320.

[20] A. Purwatiningsih, S. Purnamasari, H. Setyawati, A. Indriani, D. Prawitasari, and S. Fitria, “Bibliometric Analysis of Islamic Crowdfunding: A Literature Review of Its Journey [version 1; peer review: 1 approved with,” Universitas (Stuttg)., 2024.

[21] T. Taha and I. Macias, “Crowdfunding and Islamic Finance: A Good Match?,” in Social Impact Finance, Springer, 2014, pp. 113–125.

Downloads

Published

2025-04-30

Issue

Vol. 3 No. 02 (2025): West Science Islamic Studies

Section

Articles

License

Copyright (c) 2025 Didih Muhamad Sudi

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

How to Cite

Innovation in Islamic Social Finance: Integration of Digital Waqf and Sharia Crowdfunding in Indonesia (D. M. Sudi , Trans.). (2025). West Science Islamic Studies, 3(02), 118-124. https://doi.org/10.58812/wsiss.v3i02.1834