Legal Analysis of Accountability and Transparency in the Distribution of Waqf Management Returns
Article Sidebar
Main Article Content
Abstract
This article examines the compatibility between Article 23 of the Indonesian Waqf Board (BWI) Regulation No. 01 of 2020 on the distribution of waqf proceeds and the Financial Accounting Standards (PSAK) 112 on Waqf Accounting. Article 23 stipulates that net proceeds shall be allocated with a maximum of 10% for Nazhir, at least 50% for the Mauquf ‘Alaih, and the remainder for reserves. However, the regulation does not specify the accounting basis for calculating and reporting such net proceeds. In contrast, PSAK 112 provides a comprehensive framework for recognition, measurement, presentation, and disclosure of waqf assets, including the separation between waqf and non-waqf assets, as well as the preparation of statements of financial position, activities, cash flows, and notes. This study employs a normative juridical method with statutory, conceptual, and comparative approaches, supported by international literature on accountability in waqf management. The findings reveal a regulatory gap between BWI Regulation and PSAK 112, which risks undermining transparency and accountability. The study recommends regulatory harmonization with PSAK 112, capacity building for Nazhir in financial reporting, and the adoption of digital reporting systems based on standardized accounting practices to strengthen public trust and ensure sustainable waqf governance.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
All rights reserved. This publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording.
References
Abdul Rahman, R., & Goddard, A. (2018). Accountability understandings and practices in waqf institutions in Malaysia. Journal of Islamic Accounting and Business Research, 9(3), 316–333. https://doi.org/10.1108/JIABR-05-2016-0062
Archer, S., & Karim, R. A. A. (2007). Islamic finance: The regulatory challenge. Singapore: Wiley.
Aryana, K. P., Nugraha, T. H., & Nurkholis, R. (2022). Good nazir governance (GNG) and accountability: Evidence from Wakaf Salman ITB. Jurnal Reviu Akuntansi dan Keuangan, 12(1), 1–14. https://doi.org/10.22219/jrak.v12i1.19540
Ascarya, & Rahmawati, D. (2022). Waqf and Islamic social finance in Indonesia: Opportunities and challenges. Journal of Islamic Accounting and Business Research, 13(2), 210–228. https://doi.org/10.1108/JIABR-10-2019-0190
Badan Wakaf Indonesia. (2020). Peraturan BWI No. 01 Tahun 2020 tentang Pedoman Pengelolaan dan Pengembangan Harta Benda Wakaf. Jakarta: BWI.
El-Halaby, S., & Hussainey, K. (2016). The determinants of social accountability disclosure: Evidence from Islamic financial institutions. Journal of Islamic Accounting and Business Research, 7(2), 116–136. https://doi.org/10.1108/JIABR-01-2014-0006
Elasrag, H. (2019). Towards a global waqf development framework: Governance, accountability and innovation. Cairo: SSRN.
Elmahgop, N., Abdelrahman, A., & Elsayed, M. (2025). Waqf and sustainable development goals: A systematic review. Sustainability, 17(9), 3805. https://doi.org/10.3390/su17093805
Farook, S., Hassan, M. K., & Lanis, R. (2011). Determinants of corporate social responsibility disclosure: The case of Islamic financial institutions. Journal of Islamic Accounting and Business Research, 2(2), 114–141. https://doi.org/10.1108/17590811111170539
Farooq, O., & El-Ghoul, S. (2019). Accounting standards and the trust of investors: Evidence from Islamic finance. Journal of International Accounting Research, 18(3), 125–146. https://doi.org/10.2308/jiar-52587
Hameed, S., Haniffa, R., Hafiz, M., & Sulaiman, A. K. (2004). Alternative disclosure and performance measures for Islamic banks. Review of Islamic Economics, 8(1), 47–62.
Haniffa, R., & Hudaib, M. (2007). Exploring the ethical identity of Islamic financial institutions. Journal of Business Ethics, 76(1), 97–116. https://doi.org/10.1007/s10551-006-9272-5
Hassan, M. K., Aliyu, S. U. R., & Saiti, B. (2019). A contemporary survey of Islamic finance literature. Journal of Economic Surveys, 33(4), 1063–1110. https://doi.org/10.1111/joes.12305
Hassan, R., & Shahid, A. (2010). Management and reporting of waqf assets in Malaysia: Issues and challenges. Journal of Islamic Economics, Banking and Finance, 6(2), 33–49.
Htay, S. N. N., Salman, S. M., & Meera, A. K. M. (2013). Let’s move to ‘unleashing the potentials of waqf’ in the Islamic finance industry. Middle-East Journal of Scientific Research, 13(Special Issue), 98–107.
Ihsan, H., & Ibrahim, S. M. A. (2011). Waqf accounting and management in Indonesian waqf institutions: The necessity for standardisation. Humanomics, 27(4), 252–269. https://doi.org/10.1108/08288661111181305
Ikatan Akuntan Indonesia. (2020). PSAK 109: Akuntansi zakat, infak, dan sedekah. Jakarta: IAI.
Ikatan Akuntan Indonesia. (2021). PSAK 112: Akuntansi wakaf. Jakarta: DSAS-IAI.
ISRA Research Team. (2024). Waqf disclosure and governance: A cross-country review. ISRA International Journal of Islamic Finance, 16(2), 245–270. https://doi.org/10.1108/IJIF-05-2023-0089
Kamla, R., & Alsoufi, R. (2015). Critical Muslim intellectuals’ thought: Possible contributions to accounting research. Accounting, Auditing & Accountability Journal, 28(2), 178–207. https://doi.org/10.1108/AAAJ-08-2013-1442
Kamla, R., & Haque, F. (2019). Accountability in Islamic organizations: Insights from waqf institutions. Critical Perspectives on Accounting, 63, 101–118. https://doi.org/10.1016/j.cpa.2017.01.003
Kashi, F., El Rayah, M., & Abdelhamid, A. (2024). A bibliometric analysis of waqf research: Themes and trends. Journal of Islamic Monetary Economics and Finance, 11(2), 289–321. https://doi.org/10.21098/jimf.v11i2.2317
Kuran, T. (2019). Waqf and economic development: Historical and contemporary perspectives. Cambridge: Cambridge University Press.
Laila, N. (2024). A critical assessment on cash waqf-linked sukuk. Qualitative Research in Financial Markets, 16(3), 415–432. https://doi.org/10.1108/QRFM-11-2023-0291
Lestari, R., Sholihah, I., & Hakim, M. F. (2023). Waqf development and the legal framework in Indonesia. Heliyon, 9(5), e15783. https://doi.org/10.1016/j.heliyon.2023.e15783
Lewis, M. K. (2001). Islam and accounting. Accounting Forum, 25(2), 103–127. https://doi.org/10.1111/1467-6303.00058
Masruki, R., & Shafii, Z. (2013). The development of waqf accounting in enhancing accountability. Middle East Journal of Scientific Research, 13(13), 1–6.
Mohd Thas Thaker, M. A., Mohamed, N. A., & Shaikh, M. (2021). Developing a cash waqf investment model: Evidence from Malaysia. ISRA International Journal of Islamic Finance, 13(1), 66–83. https://doi.org/10.1108/IJIF-08-2018-0091
Mohd Thas Thaker, M. A., Mohamed, N. A., Shaikh, M., & Basri, H. (2018). Mitigating waqf disputes through accountability and governance: Lessons from Malaysia. International Journal of Islamic and Middle Eastern Finance and Management, 11(2), 190–207. https://doi.org/10.1108/IMEFM-05-2017-0124
Mohsin, M. I. A. (2013). Financing the development of old waqf properties. New York: Palgrave Macmillan. https://doi.org/10.1057/9781137292783
Nurrachmi, R. (2019). The implication of waqf accounting on transparency and accountability in Islamic social finance. Journal of Islamic Monetary Economics and Finance, 5(1), 149–168. https://doi.org/10.21098/jimf.v5i1.1061
Rahman, A. R. A., & Ahmad, N. H. (2011). Financial reporting of waqf: The accountability framework. International Journal of Economics, Management and Accounting, 19(1), 85–102.
Saad, R. A. J., Abdul-Rahman, A., & Sawandi, N. (2016). Empirical insights into the accountability practices of waqf institutions in Malaysia. Journal of Islamic Accounting and Business Research, 7(4), 354–371. https://doi.org/10.1108/JIABR-07-2014-0020
Shafii, Z., Salleh, S., & Junos, S. (2015). Accountability and governance reporting by waqf institutions in Malaysia. International Journal of Islamic and Middle Eastern Finance and Management, 8(2), 134–151. https://doi.org/10.1108/IMEFM-06-2013-0070
Shafii, Z., Salleh, N. H., & Zakaria, N. (2015). Accountability practices in waqf management: Lessons from the Islamic non-profit sector. Humanomics, 31(3), 299–313. https://doi.org/10.1108/H-12-2013-0085
Soekanto, S., & Mamudji, S. (2015). Penelitian hukum normatif: Suatu tinjauan singkat. Jakarta: RajaGrafindo Persada.
Sukmana, R. (2020). Critical assessment of Islamic endowment funds (waqf) literature: Lesson for government and future directions. Heliyon, 6(10), e05074. https://doi.org/10.1016/j.heliyon.2020.e05074
Widiastuti, T., et al. (2022). An integrated Islamic social finance for waqf sustainability. Heliyon, 8(11), e11038. https://doi.org/10.1016/j.heliyon.2022.e11038
Yaacob, H., Petra, S., & Sumardi, S. (2015). Waqf accounting and management in Malaysia: A case study of the State Islamic Religious Council. International Journal of Islamic and Middle Eastern Finance and Management, 8(2), 155–173. https://doi.org/10.1108/IMEFM-09-2013-0091
Yaumidin, A., & Zulkifli, Z. (2024). Waqf reporting quality and stakeholder trust. International Journal of Islamic and Middle Eastern Finance and Management, 17(1), 98–120. https://doi.org/10.1108/IMEFM-11-2022-0473