The Government Intensively Invites Sukuk Waqf, What Is Sukuk Waqf?

In an effort to support the National Movement for Waqf Money (GNWU) launched by the government to help the development of social investment and the development of productive waqf in Indonesia, Dompet Dhuafa as a waqf nazir also manages Waqf Sukuk or Cash Waqf Linked Sukuk (CWLS). So what exactly is CWLS and how is it set up?

In short, CWLS or Sukuk Waqf is integration between waqf money and sukuk. So, before further discussing this, it’s a good idea to understand the sukuk first.

Quoting POJK Number: 3 / POJK.04 / 2018 concerning Amendments to the Financial Services Authority Regulation Number 18 / POJK.04 / 2015 concerning The Issuance and Requirements of Sukuk, it is explained that Sukuk is a Sharia Securities in the form of certificates or proof of ownership of the same value and represents an inseparable or undivided share (syuyu’) ,of the underlying assets. Meanwhile, the assets on which Sukuk is based must not conflict with sharia principles in the capital market. Sukuk is also known as Islamic bonds.

According to DSN MUI Fatwa No. 137/DSN-MUI/IX/2020, it is stated that Sukuk is a Sharia Securities (Sharia Effect) in the form of certificates or proof of ownership of the same value, and represents a share of ownership that cannot be determined by the limits (musya’) of the underlying assets (Sukuk Assets/Ushul al-Shukuk). After the receipt of sukuk funds, closing of orders and starting of the use of funds according to their designation.

The First Dictum number 3 Fatwa DSN MUI 32 / DSN-MUI / IX / 2002 concerning Islamic bonds, defines Sharia Bonds as a long-term securities based on sharia principles issued by issuers to sharia bond holders which requires issuers to pay income to sharia bondholders in the form of profit sharing / margin / fee and repay bond funds at maturity.

Meanwhile, sukuk assets (Ushul al-Shukuk) are assets that form the basis for the issuance of sukuk consisting of tangible assets (al-a’yan), benefits on tangible assets (manafi’ al-a’yan), services (al-khadamat), certain project assets (maujudat masyru’ mu’ayyan) and / or assets of predetermined investment activities (nasyath istitsmar khashsh).

Sukuk has the following characteristics:

  1. Sukuk assets (Ushul al-Shukuk) used as the basis for issuing Sukuk must be in accordance with sharia principles;
  2. Sukuk assets (Ushul al-Shukuk) belong to Sukuk holders ;
  3. Each Sukuk unit must have the same value (Mutasawiyah al-qimah);
  4. Sukuk at the time of issuance does not reflect the issuer’s debt to Sukuk holder, but rather reflects the Sukuk holder’s ownership of the Sukuk Asset (Ushul al-Shukuk);
  5. Sukuk may turn into debts/receivables (dain) in that Sukuk Assets (Ushul al-Shukuk) turn into receivables (dain) of Sukuk holders;
  6. In principle, the issuance of Sukuk must have a certain period of time unless otherwise agreed in the contract or regulated by applicable laws and regulations;;
  7. The issuer is obliged to pay income to sukuk holders in the form of profit sharing/margin/fee and repay sukuk funds at maturity in accordance with the contract scheme;
  8. Sukuk yields with mudharabah and musyarakah contracts must come from business activities that become Sukuk Assets (Ushul al-Shukuk).


Sukuk can be issued by the government called State Sukuk or known as State Sharia Securities (SBSN). In addition, it can also be issued by a company called Corporate Sukuk. CWLS/Sukuk Waqf is an SBSN issued under a socially responsible based investment scheme by bookbuilding in the domestic primary market for investment in the management of waqf money by nazir. Where, the yield will be used for social purposes and cannot be traded in the secondary market.

In the contract process, applies to Corporate Sukuk in Indonesia until now using 3 (three) contract schemes. Namely: (1) Sukuk Mudharabah, (2) Sukuk Ijarah (Sale & Lease Back), and (3) Sukuk Wakalah. In Fatwa No. 137 on Sukuk, it is stated that, the issuance of sukuk is obliged to use contracts that are in accordance with sharia principles, namely Mudharabah, Ijarah, Wakalah, Musyarakah, Murabahah, Salam, Istishna’, or other contracts that are in accordance with sharia principles.


RS Mata Achmad Wardi Serang
Mata Achmad Wardi Hospital in Serang is one of the productive waqf managed by Dompet Dhuafa. The Ministry of Finance and BWI issued A CWLS worth IDR 50 billion whose investment benefits were for the construction of a Retina Center in this free hospital

In layman’s terms, CWLS/Sukuk Waqf can be understood as sharia debt securities or sukuk based on money waqf. Where the funds collected are made into profitable investments. The returns from the waqf sukuk will be used as financing for various social programs by nazir, including: the construction and development of physical waqf assets such as hospitals, health clinics, madrasahs, islamic boarding schools, or social programs in the fields of education, health, economy, social development and others.

Waqf Sukuk is carried out with the following mechanism:

Wakif waived his money (both temporarily and perpetually) through LKS-PWU or nazir. Then the waqf fund money will be invested in the waqf sukuk. Furthermore, the government will issue a waqf sukuk, where the ownership of the waqf sukuk will be recorded in the name of the wakif acting on the power of the nazir. At certain intervals (usually every month), the government will pay the return on the investment of sukuk waqf to the nazir. Nazir was then in charge of distributing the returns on waqf sukuk investment through various financing of non-APBN social programs/activities, both the development and development of physical waqf assets as well as financing non-physical programs and social activities.

At the maturity of the waqf sukuk, in the case of a temporary (termed) waqf, the government will pay cash funds for the repayment of the nominal waqf sukuk to the waqf. Meanwhile, in the case of perpetual waqf (forever), the cash fund for repayment of the nominal waqf sukuk is handed over to the nazir through the debiting of the wakif fund account for further management. (Dompet Dhuafa / Muthohar)