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Factors Influencing the Success of Retail Cash Waqf Linked Ṣukūk (CWLS) Issuance: A Lesson from Indonesia العوامل المؤثرة في نجاح إصدار صكوك التجزئة المرتبط بالوقف النقدي (CWLS): درس من إندونيسيا

Author

Listed:
  • Rindawati Maulina

    (Bank Indonesia, Indonesia)

Abstract

In October 2020, the Indonesian government launched a Waqf-linked Islamic certificate called Cash Waqf Linked Ṣukūk (CWLS) that targeted retail investors. The CWLS SWR001 series for individuals is presented as a commitment by the government to support the national waqf movement and foster the development of social investment and productive waqf in Indonesia. The objectives of this study are to examine the key determinants of the willingness of upper middle-class Muslims in Indonesia to contribute to CWLS and explain the barriers in the collection of CWLS. The primary data were analyzed using a Partial Least Squares Structural Equation Modelling (PLS-SEM). The result shows that the variables of Financial Excess, Trust in Waqf Institutions and Government significantly affect the willingness of upper middle-class Muslims in Indonesia to contribute to retail CWLS. أطلقت الحكومة الإندونيسية في أكتوبر عام 2020م، ورقة مالية إسلامية مرتبطة بالوقف أُطلق عليها صكوك التجزئة المرتبطة بالوقف النقدي (CWLS)، والتي تستهدف مستثمري التجزئة؛ أي الأفراد بشكل رئيس. حيث يتم تقديم تلك الصكوك للأفراد كالتزام من قبل الحكومة لدعم النشاط الوقفي، وتعزيز تنمية الاستثمار الاجتماعي والوقف الإنتاجي في البلاد. تهدف الدراسة إلى فحص المحددات الرئيسية لاستعداد المسلمين من الطبقة المتوسطة العليا في إندونيسيا للمساهمة في هذا النوع من صيغ وأدوات التمويل والاستثمار، مصحوبًا بشرح للعوائق في تعبئة الموارد المالية عبر هذه الأداة. تم تحليل البيانات الأولية باستخدام نمذجة المعادلة الهيكلية الجزئية للمربعات الصغرى (PLS-SEM). أظهرت نتائج الدراسة أن متغيرات الفائض المالي، والثقة في مؤسسات الوقف، والحوكمة تؤثر بشكل كبير في رغبة مسلمي الطبقة المتوسطة العليا في إندونيسيا للمساهمة في التعامل مع هذا النوع من صيغ تعبئة الموارد المالية واستثمارها.

Suggested Citation

  • Rindawati Maulina, 2022. "Factors Influencing the Success of Retail Cash Waqf Linked Ṣukūk (CWLS) Issuance: A Lesson from Indonesia العوامل المؤثرة في نجاح إصدار صكوك التجزئة المرتبط بالوقف النقدي (CWLS): درس من إندونيسيا," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 35(1), pages 57-74, January.
    • Handle: RePEc:abd:kauiea:v:35:y:2022:i:1:no:4:p:57-74
    DOI: 10.4197/Islec.35-1.4
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    References listed on IDEAS

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    1. Uswatun Hasanah, 2011. "Cash Waqf and People Economic Empowerment in Indonesia," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 59, pages 215-232, August.
    2. Sayyed Mohammad Sayyed Hosseini & Taqi Ebrahimi Salari & Sayyed Mahdi Narimani Zaman Abadi, 2014. "Study of Cash Waqf and Its Impact on Poverty (Case Study of Iran)," Economic Analysis Working Papers (2002-2010). Atlantic Review of Economics (2011-2016), Colexio de Economistas de A Coruña, Spain and Fundación Una Galicia Moderna, vol. 2, pages 1-1, December.
    3. Dian Masyita & Muhammad Tasrif & Abdi Suryadinata Telaga, 2005. "A Dynamic Model for Cash Waqf Management as One of The Alternative Instruments for The Poverty Alleviation in Indonesia," Working Papers in Business, Management and Finance 200502, Department of Management and Business, Padjadjaran University, revised Feb 2005.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Cash waqf-Linked Ṣukūk; Cash waqf; CWLS SWR001 series; Partial Least Squares Structural; Equation Modelling. صكوك التجزئة المرتبطة بالوقف النقدي، وقف النقود، سلسلة (CWLS SWR001)، المربعات الصغرى الهيكلية، نمذجة المعادلة الهيكلية الجزئية للمربعات الصغرى (PLS-SEM).;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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