Waqf as a Sustainable Financing Model for Education and Health Services

Abstract

This study explores the role of waqf as a sustainable financing model for education and health services, with a focus on its contemporary application in Indonesia. Traditionally regarded as a religious and philanthropic practice, waqf has evolved into a critical mechanism for funding social services, yet its potential remains underutilized due to institutional and managerial constraints. Using a qualitative approach, this research examines the current role of waqf institutions, governance practices, challenges faced, and emerging innovations in sustaining education and healthcare. The findings reveal that waqf continues to play a vital role by supporting schools, scholarships, and hospitals, particularly in underserved communities. However, the study also identifies significant challenges, including weak professional capacity among waqf managers, fragmented regulatory enforcement, and limited public awareness of waqf’s socio-economic potential. Despite these obstacles, innovations such as cash waqf, productive waqf, digital platforms, and public–private partnerships are reshaping the landscape, offering promising pathways to enhance sustainability and impact. The discussion highlights the need for stronger governance frameworks, professional training for nazir, and greater public engagement to ensure the productive use of waqf assets. The study concludes that waqf, when effectively managed, represents a hybrid institution that bridges religious values and modern financial practices, aligning with the Sustainable Development Goals (SDGs) in promoting inclusive education and equitable healthcare. These findings underscore the importance of revitalizing waqf institutions as a reliable, long-term mechanism for advancing social welfare and sustainable development.