The Evaluation of Cash Waqf Linked Sukuk (CWLS) Retail Implementation and Its Potential Effects on Socioeconomic Development

Year 2023, Volume: 23 Issue: 2, 53 - 69, 31.10.2023

Mohamad Handi Khalifah , Hakan Aslan

https://doi.org/10.30976/susead.1351607

Abstract

Purpose - The study aims to evaluate the potential of the CWLS Retail instrument to promote socioeconomic development in Indonesia in the Islamic social finance system.
Methodology - Qualitative descriptive approaches are used in this study to investigate government papers, scientific publications on the subject, and the outcomes of previous studies.
Findings – Indonesia expands its Islamic finance investor base, particularly among the millennial generation (Gen-Y), CWLS. Indonesia's commitment to advancing the National Waqf Movement, encouraging social investment, and growing productive waqf in Indonesia is demonstrated by the issuance of CWLS Retail. It was found that CWLS had a significant impact on the socioeconomic development of Indonesia.
Conclusion – Indonesia needs to expand its investor base and promote CWLS Retail product innovation, considering divergent opinions among scholars. CWLS Retail innovation can be further developed using various models to adjust a region's or country's social and economic structure.

Keywords

Islamic Finance, Sukuk, Cash Waqf, CWLS Retail, Sukuk Innovation

Parakende Para Vakfına Bağlı Sukuk Uygulamasının Değerlendirilmesi ve Sosyoekonomik Kalkınma Üzerindeki Potansiyel Etkileri

Abstract

Amaç – Bu çalışma, İslami sosyal finans sisteminde Endonezya'da sosyoekonomik kalkınmayı teşvik etmek için CWLS Perakende aracının potansiyelini değerlendirmeyi amaçlamaktadır.
Yöntem – Bu çalışmada kamu kuruluşlarının yayınladıkları belgeleri, konuyla ilgili bilimsel makaleleri, raporları ve önceki çalışmaların sonuçlarını analiz etmek için tanımlayıcı nitel yöntem kullanılmıştır.
Bulgular – Endonezya, İslami finans yatırımcı tabanını, özellikle de Y kuşağı arasında CWLS ile genişletmektedir. Endonezya’nın Ulusal Vakıf Hareketini ilerletme, sosyal yatırımı teşvik etme ve Endonezya'da üretken vakfı geliştirme konusundaki kararlılığı, CWLS Perakende ihracı ile gösterilmiştir. Çalışmada, CWLS'nin Endonezya'nın sosyoekonomik kalkınmasında önemli bir etkisi olduğu tespit edilmiştir.
Sonuç – Endonezya'nın yatırımcı tabanını genişletmesi ve akademisyenler arasındaki farklı görüşleri de dikkate alarak CWLS Perakende ürün inovasyonunu teşvik etmesi gerekmektedir. CWLS Perakende inovasyonu, bir bölgenin veya ülkenin sosyal ve ekonomik yapısına uyum sağlamak için çeşitli modeller kullanılarak daha da geliştirilebilecektir.

Keywords

İslami Finans, Sukuk, Para Vakfı, Parakende CWLS, Sukuk İnovasyonu

References

• Ahmed, E. R., Islam, A., & Hashim, F. (2020). Sukuk: History and Development. January, 704–731. https://doi.org/10.4018/978-1-7998-0218-1.ch036
• Alswaidan, M. W., Daynes, A., & Pasgas, P. (2017). Understanding and evaluation of risk in Sukuk structures. Journal of Islamic Accounting and Business Research, 8(4), 389–405. https://doi.org/10.1108/JIABR-05-2015-0021
• Anindhita, A. E., & Widana, I. O. (2022). Optimizing the Role of Cash Waqf Linked Sukuk for State Development. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah, 14(1), 185–212. https://doi.org/10.15408/aiq.v14i1.24195
• Ariff, M., Safari, M., & Mohamad, S. (2012). Sukuk Securities, Their Definitions , Classification and Pricing issues. The Islamic Debt Market for Sukuk Securities: The Theory and Practice of Profit Sharing Investment, ii, 11–41.
• Baita, A. J., & Mustafa, D. (2019). Appraisal of economic benefits of sukūk in financing budget deficits in Nigeria. Journal of King Abdulaziz University, Islamic Economics, 32(1), 145–158. https://doi.org/10.4197/Islec.32-1.11
• Bank Indonesia. (2020). Historical Indonesia Sovereign Rating.
• BWI. (2021). Daftar Program/Kegiatan Sosial Sukuk Wakaf Seri SWR002. Cahyono, E. F., & Hidayat, S. E. (2022). Cash Waqf and The Development: A Case Study of Cash Waqf Linked Sukuk in Indonesia. El-Barka: Journal of Islamic Economics and Business, 5(1), 150–182. https://doi.org/10.21154/elbarka.v5i1.3713
• DJPPR. (2020). Cash Waqf Linked Sukuk Seri SWR001. Direktorat Jenderal Pengelolaan Pembiayaan Dan Risiko, 1–14.
• DJPPR. (2021). Frequently Asked Questions Cash Waqf Linked Sukuk SWR002 (Issue September).
• DSN-MUI. (2021). Pernyataan Kesesuaian Syariah SBSN CashWaqf Linked Sukuk (CWLS) Ritel dengan cara Bookbuilding Tahun 2021 (Issue 19).
• Equivalents, C. (2021). Franklin Global Sukuk (Issue May).
• Fasa, M. I. (2017). Sukuk: Teori Dan Implementasi. Jurnal Studi Ekonomi Dan Bisnis Islam, 2, 39–55.
• Fauzi, Achmad, and Hendri Tanjung. "Risk Management in Cash Waqf Linked Sukuk Based on the Waqf Core Principle: A Preliminary Study." *Jurnal Ekonomi Syariah* (JES), vol. 2, no. 2, 2021, pp. 1-29. https://www.bwi.go.id/wp-content/uploads/2021/09/20210930-07-BWI-Working-Paper-Series-September-2021.pdf.
• Hanefah, M. M., Noguchi, A., & Muda, M. (2013). Sukuk: Global issues and challenges. Journal of Legal, Ethical and Regulatory Issues, 16(1), 107–120.
• Haron, R., & Ibrahim, K. (2012). The Impact of Sukuk on Corporate Financing: Malaysia Evidence. Journal of Islamic Finance, 1(1), 1–11.
• Hidayatullah, S. (2016). Bagaimanakah Kedudukan Hukum Wakaf Uang dan Penerapannya dalam Hukum Islam dan Hukum Positif di Indonesia. Waratsah, 01(02), 71–100. Jobst, A. (2007). The Economics of Islamic Finance and Securitization. IMF Working Papers, 07(117), 1. https://doi.org/10.5089/9781451866810.001
• Kantarcı, H. B., & Eren, T. (2018). The Emergence of Sukuk Market and Economic Effects. GJETeMCP) An Online International Research Journal, 4, 1.
• KEMENKEU. (2021). Pemerintah Republik Indonesia Memorandum Informasi Sukuk Wakaf (Cahs Waqf Linked Sukuk ) Seri SWR002 (Issue April).
• KEMENKEU, D. (2020). Apa itu Cash Waqf Linked Sukuk? Komisi Fatwa MUI. (2002). Wakaf Uang. In Majelis Ulama Indonesia.
• Mcmillen, M. J. T. (2008). Asset securitization sukuk and Islamic capital markets: Structural issues in these formative years. Wisconsin International Law Journal, 25(4), 703–772.
• Mseddi, S., & Naifar, N. (2013). Rating methodology and evaluating the issuer of sukuk. International Journal of Management Science and Engineering Management, 8(4), 262–275. https://doi.org/10.1080/17509653.2013.829629
• Musari, K. (2016). Economic Sustainability for Islamic Nanofinance through Sukuk-Waqf Linkage Program (Case Study in Indonesia). International Journal of Islamic Economics and Finance Studies, 2(3), 73–94.
• Negasi, M. I., Laeba, M., & Abu bakar, Y. S. (2018). The Concept of Waqf Sukuk and Its Ruling in Islamic Law. Scholars Academic and Scientific Publishers (SAS Publishers) A Unit of Scholars Academic and Scientific Society, India, 7(ISSN 2347-5374), 2073–2079. https://doi.org/10.21276/sjahss.2018.6.11.4
• Onagun, A. I. (2016). The Impact of Sukuk investment in Developing UAE Economy. Journal of Islamic Banking & Finance, 33(4), 38–54.
• PJSC, E. I. B. (2021). Sukuk - Indicative Prices & Yields. Emirates Islamic, 1–4.
• Pratama, B. S., Fikri, H. M., & Wirdyaningsih. (2020). Optimization of Sukuk to Support Sustainable Development in Indonesia. 1st International Conference on Law, Governance and Islamic Society (ICOLGIS 2019), 413(Icolgis 2019), 56–60. https://doi.org/10.2991/assehr.k.200306.181
• Putri, N. A. (2021). Optimization of Cash Waqf Linked Sukuk (CWLS) to Support the Development of Social Investment and Productive Waqf. In The International Islamic Economic System Conference – The 9th I-iECONS 2021, p. 438. https://oarep.usim.edu.my/jspui/bitstream/123456789/13620/1/Optimization%20Cash%20Waqf%20Linked%20Sukuk%20%28CWLS%29%20to%20Support%20the%20Development%20of%20Social%20Investment%20and%20Productive%20Waqf.pdf
• Ramadhan, I. A., & Wirdyanigsih. (2020). Green Sukuk Issuance as an Investment Instrument for Sustainable Development. 413(Icolgis 2019), 95–98. https://doi.org/10.2991/assehr.k.200306.189
• Rusydiana, A. S., & Avedta, S. (2023). The Potency of Cash Waqf Linked Sukuk (CWLS) on Social Development. Journal of Islamic Economics Literatures, 4(1). https://www.journals.smartinsight.id/index.php/JIEL/article/view/215%0Ahttps://www.journals.smartinsight.id/index.php/JIEL/article/download/215/201
• Setyomurni, T. A., & Nashirudin, M. (2023). Analysis of The Cash Waqf Linked Sukuk (CWLS) Model As An Instrument of Post Covid-19 National Economic Recovery. Islamic Banking : Jurnal Pemikiran Dan Pengembangan Perbankan Syariah, 9(1), 167–184. https://doi.org/10.36908/isbank.v9i1.934
• Smaoui, H., & Khawaja, M. (2017). The Determinants of Sukuk Market Development. Emerging Markets Finance and Trade, 53(7), 1501–1518. https://doi.org/10.1080/1540496X.2016.1224175
• SMI, P. (2018). PT SMI Green Bond / Green Sukuk Framework.
• Tanjung, H., & Windiarto, A. (2021). Role of Cash Waqf Linked Sukuk in Economic Development and International Trade. Signifikan: Jurnal Ilmu Ekonomi, 10(2), 275-290. P-ISSN: 2087-2046; E-ISSN: 2476-9223. Universitas Ibn Khaldun Bogor, West Java, Indonesia. http://journal.uinjkt.ac.id/index.php/signifikan. DOI: https://doi.org/10.15408/sjie.v10i2.20493.
• Tariq, A. A., & Dar, H. (2007). Risks of Sukuk Structures: Implica- tions for Resource Mobilization. Thunderbird International Business Review, 49(5), 630–631. https://doi.org/10.1002/tie
• Ud Din, S. (2016). Conceptual and Structural Differences Between Conventional Bonds and Islamic Sukuk. Australian Journal of Business and Management Research New South Wales Research Centre Australia (NSWRCA) ISSN:, 5(5), 37–44.
• Usmani, M. T. (2007). Sukuk and their Contemporary Applications. The Shariah Committee, 1–15.
• Yahya, M., Hussin, M., & Muhammad, F. (2012). Development of Sukuk Ijarah in Malaysia. Journal of Islamic Economics, Banking and Finance, 8(2), 92–101.
• Yunita, P. (2021). Cash Waqf Linked Sukuk (CWLS) Model: For Indonesia Sustainable Food Security. Al-Awqaf: Jurnal Wakaf Dan Ekonomi Islam, 13(1), 59–72. https://doi.org/10.47411/al-awqaf.v13i1.96