Digital Waqf Crowdfunding as an Innovation in Islamic Social Financing: A Critical Reviewer of its Development in Indonesia

Abstract

This study examines the role of digital waqf crowdfunding as an innovation in Islamic social financing in the digital era, focusing on its development and implementation in Indonesia. As a predominantly Muslim country, Indonesia has significant potential for waqf development, particularly cash waqf. Digital transformation has made waqf fundraising easier, more transparent, and more participatory through crowdfunding platforms. Waqf, as a charity-oriented Islamic social financial instrument, is now rapidly developing through digital mechanisms to support various sectors such as education, health, and poverty alleviation. This study employed a qualitative method with a library research approach, reviewing various literature, official reports, and existing crowdfunding platforms. The results indicate that, despite its significant potential, the implementation of digital waqf crowdfunding in Indonesia still faces various challenges, including low literacy in productive waqf, a lack of professionalism among managers (nazhir), and suboptimal regulation and the integration of sharia principles. Therefore, strengthening the digital waqf ecosystem, involving all parties, including government institutions, the private sector, and the general public, is necessary to realize waqf as a sustainable and impactful Islamic social financing instrument.