IDEAS home Printed from https://ideas.repec.org/a/adx/journl/v3y2021i3p158-166.html
   My bibliography  Save this article

Can Blockchain Technology Improve Accountability and Transparency of Cash Waqf in Indonesia?

Author

Listed:
  • Diki Zulkarnaen
  • Murniati Mukhlisin
  • Sigid Eko Pramono

Abstract

One of the problems that occur in the development of cash waqf in Indonesia is the managerial system and financial reporting. Currently, the safety of waqf data is not guaranteed and is not integrated yet between Islamic Financial Institution � Cash Waqf Recipient/LKS-PWU (Lembaga Keuangan Syari�ah � Penerima Wakaf Uang), Nazir, and BWI (Badan Wakaf Indonesia). The blockchain system comes with changing a centralized approach to being decentralized. The use of the blockchain system in managing waqf funds can be a solution to the problem of waqf that occurs. Therefore, this study aims to examine the implementation of blockchain technology in increasing the accountability and transparency of cash waqf in Indonesia. This study adopts an interview technique with seven practitioners and academics in collecting data and using thematic analysis in the analysis. The research finds that the level of accountability in the waqf management by the LKS-PWU of the Islamic bank is quite acceptable, as evidenced by the fulfillment of five accountability indicators by the LKS-PWU. However, it must be improved in several aspects such as data security, data integration, and real-time reporting. Strategies for increasing accountability include the blockchain implementation in the waqf management both in collecting and distributing waqf by LKS-PWU. The opportunity to apply blockchain to waqf management is very potential because the blockchain system has several advantages such as speed, transparency, and a higher level of security than the conventional system.

Suggested Citation

  • Diki Zulkarnaen & Murniati Mukhlisin & Sigid Eko Pramono, 2021. "Can Blockchain Technology Improve Accountability and Transparency of Cash Waqf in Indonesia?," Journal of Economic Impact, Science Impact Publishers, vol. 3(3), pages 158-166.
    • Handle: RePEc:adx:journl:v:3:y:2021:i:3:p:158-166
    DOI: 10.52223/jei3032105
    as

    Download full text from publisher

    File URL: https://doi.org/10.52223/jei3032105
    Download Restriction: no
    File URL: https://libkey.io/10.52223/jei3032105?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Huasheng Zhu & Zach Zhizhong Zhou, 2016. "Analysis and outlook of applications of blockchain technology to equity crowdfunding in China," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 2(1), pages 1-11, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Raffaele Trequattrini & Matteo Palmaccio & Mario Turco & Alberto Manzari, 2024. "The contribution of blockchain technologies to anti‐corruption practices: A systematic literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 33(1), pages 4-18, January.
    2. Mustafa Raza Rabbani & Shahnawaz Khan & Eleftherios I. Thalassinos, 2020. "FinTech, Blockchain and Islamic Finance: An Extensive Literature Review," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 65-86.
    3. Witold Nowiński & Miklós Kozma, 2017. "How Can Blockchain Technology Disrupt the Existing Business Models?," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 5(3), pages 173-188.
    4. Evans, Olaniyi, 2018. "Blockchain Technology and the Financial Market: An Empirical Analysis," MPRA Paper 99212, University Library of Munich, Germany.
    5. Yunmei Liu & Shuai Zhang & Min Chen & Yenchun Wu & Zhengxian Chen, 2021. "The Sustainable Development of Financial Topic Detection and Trend Prediction by Data Mining," Sustainability, MDPI, vol. 13(14), pages 1-19, July.
    6. Amina Rizwan & Faisal Mustafa, 2022. "Fintech Attaining Sustainable Development: An Investor Perspective of Crowdfunding Platforms in a Developing Country," Sustainability, MDPI, vol. 14(12), pages 1-17, June.
    7. Adalberto Rangone & Luca Busolli, 2021. "Managing charity 4.0 with Blockchain: a case study at the time of Covid-19," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 18(4), pages 491-521, December.
    8. Alexander Simons & Lena Franziska Kaiser & Jan Brocke, 2019. "Enterprise Crowdfunding: Foundations, Applications, and Research Findings," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 61(1), pages 113-121, February.
    9. Aysan, Ahmet Faruk & Unal, Ibrahim Musa, 2022. "Fintech, Digitalization, And Blockchain In Inslamic Finance: Retrospective Investigation," MPRA Paper 115399, University Library of Munich, Germany.
    10. Cephas Paa Kwasi Coffie & Hongjiang Zhao & Isaac Adjei Mensah, 2020. "Panel Econometric Analysis on Mobile Payment Transactions and Traditional Banks Effort toward Financial Accessibility in Sub-Sahara Africa," Sustainability, MDPI, vol. 12(3), pages 1-20, January.
    11. Park, Gunno & Shin, Seungryul Ryan & Choy, Minkyung, 2020. "Early mover (dis)advantages and knowledge spillover effects on blockchain startups’ funding and innovation performance," Journal of Business Research, Elsevier, vol. 109(C), pages 64-75.
    12. Kimani, Danson & Adams, Kweku & Attah-Boakye, Rexford & Ullah, Subhan & Frecknall-Hughes, Jane & Kim, Ja, 2020. "Blockchain, business and the fourth industrial revolution: Whence, whither, wherefore and how?," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    13. Dulani Jayasuriya Daluwathumullagamage & Alexandra Sims, 2020. "Blockchain-Enabled Corporate Governance and Regulation," IJFS, MDPI, vol. 8(2), pages 1-41, June.
    14. Romi Kher & Siri Terjesen & Chen Liu, 2021. "Blockchain, Bitcoin, and ICOs: a review and research agenda," Small Business Economics, Springer, vol. 56(4), pages 1699-1720, April.
    15. Prpić, John, 2017. "Unpacking Blockchains," SocArXiv sdwkq, Center for Open Science.
    16. Christopher Odu, 2022. "Blockchain As A Disruptive Technology In Nigeria’S Fintech Ecosystem," Information Management and Computer Science (IMCS), Zibeline International Publishing, vol. 5(1), pages 03-10, August.
    17. Dulani Jayasuriya Daluwathumullagamage & Alexandra Sims, 2021. "Fantastic Beasts: Blockchain Based Banking," JRFM, MDPI, vol. 14(4), pages 1-43, April.
    18. Maria Kukurba & Mariusz Salwin & Aneta Ewa Waszkiewicz, 2023. "Model of Value Transfer in Crowdfunding and Sustainable Development of Small and Medium-Sized Enterprises in Poland—Based on Survey Research," Sustainability, MDPI, vol. 15(16), pages 1-55, August.
    19. Nguyen, Loan T.Q. & Hoang, Thinh G. & Do, Linh H. & Ngo, Xuan T. & Nguyen, Phuong H.T. & Nguyen, Giang D.L. & Nguyen, Giang N.T., 2021. "The role of blockchain technology-based social crowdfunding in advancing social value creation," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    20. Ying Zhang & Wenwen Luo & Feifei Yu, 2020. "Construction of Chinese Smart Water Conservancy Platform Based on the Blockchain: Technology Integration and Innovation Application," Sustainability, MDPI, vol. 12(20), pages 1-16, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adx:journl:v:3:y:2021:i:3:p:158-166. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Iqbal Javed (email available below). General contact details of provider: https://www.scienceimpactpub.com/journals/index.php .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.