UNIVERSITY FUNDING THROUGH WAQF : LESSON FROM INDONESIA AND SELECTED COUNTRIES
Yana Rohmana

Universitas Airlangga

Abstract

Islam has one of the best alternatives to answer the problem of the relatively high cost of education as an obstacle for someone to continue their studies and also higher education institutions themselves who have problems with education costs, namely through the development of waqf-based tertiary institutions. Waqf funds are able to finance higher education activities in a good and sustainable manner. Several well-known universities in various parts of the world have proven successful as waqf-based universities. This study aims to examine the literature on waqf-based higher education financing in Indonesia and selected countries, namely Egypt, Malaysia, Turkey, and Pakistan. Adopting the content analysis methodology, it was found that there are a large number of waqf-based universities that have successfully implemented waqf principles in their education system. However, they have their own unique history and mechanism in terms of legal framework, funding sources, allocation of use and management institutions. It is observed that waqf funds have succeeded in improving the education system in these countries and providing opportunities for people in need and assisting the government in financing education in their country. Therefore, it is recommended that higher education waqf institutions promote the use of waqf because it brings justice and benefits to society. In addition, it is necessary for managers and custodians of waqf assets who must work with all their hearts so that the education process can run well so as to produce quality graduates who are beneficial to the wider community. Government support is needed to ensure everything goes according to purpose. The development of waqf in universities can be intensified by effective fund management, strong legislation, good governance, marketing efforts and identification of the right waqf management model to be applied.

Keywords: financing, university, waqf, funding source, management institution

Topic: Green and blue Islamic Finance