Malia.
Vol.
No.
2, pp.
June 2025 Arin Setiyowati.
Salma Nadia Salsabilla.
Dian Berkah.
Erdin Nadid.
Strategic Utilization of A Malia Published by: Study Program of Sharia Economics.
Faculty of Islamic Studies Universitas Yudharta Pasuruan Volume 16.
Number 2.
June 2025.
Pages 291-303
Print
: 2087-9636
Online : 2549-2578 Strategic Utilization of MuhammadiyahAos Waqf Land Assets To Support Green Economy Arin Setiyowati1*.
Salma Nadia Salsabilla2.
Dian Berkah3.
Erdin Nadid4 1234 Islamic Banking Program.
Faculty of Islamic Studies.
Universitas Muhammadiyah Surabaya.
Indonesia.
arinsetiyowati@um-surabaya.
id1, salmanadiasalsabilla@gmail.
faiums@gmail.
com3, erdinnadid@um-surabaya.
Article Info Article History:
Received April th, 2025 Revised May th, 2025 Accepted May th, 2025 Available onlineon June th, 2025 DOI: 10.
35891/ml.
Corresponding Author:
Arin Setiyowati arinsetiyowati@um-surabaya.
ABSTRACT
Introduction: The utilization of waqf land assets, especially in the Muhammadiyah Organization, has not been optimal in supporting sustainable development and a green economy.
A strategy for utilizing waqf land assets in the Muhammadiyah Organization to support a green economy is pivotal.
Methods: This study used a qualitative method with a case study The sources used in this study are primary and secondary The data analysis technique used in this study was simplifying raw data from interviews or data reduction.
Results: Data collection used in-depth interviews with Nadzir Based on the interviews, four main detailed themes emerged: management of waqf land assets, utilization of waqf land for a green economy, collaboration and partnership, and challenges and optimization strategies.
These four themes provide a complete picture of how the waqf land management process works in the field practice.
Conclusion and suggestion: Optimizing the use of waqf land assets by Muhammadiyah, especially in Bojonegoro and Lamongan, has shown a paradigm shift from traditional waqf management to productive waqf oriented towards sustainability through integration with the concept of green economy.
Keyword: Green Economy.
Green Waqf.
Wakaf.
Muhammadiyah.
Paper type: Research paper MALIA CC BY license.
Copyright A 2025, the author.
INTRODUCTION Based on the annual report of the Indonesian Waqf Agency, the National Waqf Index (IWN) in 2023 increased by 9.
85% from 0.
301 in 2023 (BWI, 2.
Waqf, which is a philanthropic instrument in Islam, not only serves as a resource for social and religious activities but can also be utilized for economic purposes that support welfare (Ulfiana.
According to a report from the Indonesian Waqf Board (BWI.
Go.
ID, 2.
, the potential of waqf assets in Indonesia is very large, but their utilization is still not optimal.
This indicates an opportunity to develop more effective strategies for utilizing waqf land (Azhari et , 2.
In countries like Kuwait.
Singapore, and South Africa, waqf plays a broader role in social services.
There are various initiatives, also supported by independent institutions such as the Islamic Development Bank (IDB), aimed at utilizing waqf as a means of poverty alleviation and incorporating it into development strategies.
If we trace the history of waqf in Algeria, especially in the pre-colonial era during the Ottoman period, it becomes evident that Malia.
Vol.
No.
2, pp.
June 2025 Arin Setiyowati.
Salma Nadia Salsabilla.
Dian Berkah.
Erdin Nadid.
Strategic Utilization of A waqf in general, and waqf institutions in particular, played a significant role in the social life of the community (BSI, 2.
Green Economy emerged as a response to the environmental challenges faced by the global community, including climate change, biodiversity loss, and natural resource crises (Redi et al.
, 2.
This concept began to develop in the late 20th and early 21st centuries, alongside the growing awareness of the negative impacts of conventional economic activities on the environment (Muhajjir, 2.
Green economy is a development approach aimed at improving human well-being and social justice while reducing environmental risks and resource scarcity (Anwar, 2.
In this context, the sustainable use of waqf land becomes highly relevant.
Waqf and the green economy have a strong correlation in efforts to build an environmentally friendly sustainable economy.
Waqf can be one of the Islamic financial instruments that support various projects related to environmental preservation, renewable energy, and sustainable development.
For example, the concept of Green Waqf is used to fund initiatives that support environmental preservation, reduce carbon emissions, and create inclusive social welfare through waste management or reforestation (Wahyuni et al.
, 2.
funding green infrastructure projects such as solar power plants, clean water management, and forest preservation, as done by the Indonesian Waqf Agency through the Waqf Forest program.
Thus, waqf is also a significant instrument to support the green economy, which emphasizes the balance between economic development and environmental sustainability.
The Muhammadiyah Organization, as one of the largest community organizations in Indonesia, has a moral and social responsibility to utilize waqf assets to benefit the community and the environment.
By integrating green economy principles into the management of waqf land.
Muhammadiyah can contribute to sustainable development.
This is in line with the sustainable development goals (SDG.
which emphasize the need for sustainable and inclusive resource management (Kusuma et al.
, 2.
The strategy for utilizing waqf land assets can include various initiatives, such as the development of organic agricultural land, renewable energy generation, or other environmentally friendly projects (Bappenas, 2.
In the context of agriculture, utilizing waqf land for organic farming can help increase productivity while preserving environmental A study conducted shows that organic farming is not only more environmentally friendly but also can improve the quality of agricultural products and provide added value for farmers (Bappenas, 2.
Additionally, the development of renewable energy projects, such as solar panels or bioenergy, can also serve as an alternative for utilizing waqf land.
According to research (Sawati & Amrizal, 2.
, investing in renewable energy not only reduces dependence on fossil energy sources but also creates new jobs and improves energy access for the community.
By utilizing waqf land for such projects.
Muhammadiyah can become a pioneer in the transition towards a green economy.
However, to implement this strategy, a clear framework and collaboration among various parties are needed, including the government, non-governmental organizations, and the private sector.
According to the report by the Ministry of Agrarian Affairs and Spatial Planning (Ahmad Atabik, 2.
, cooperation between the government and civil society organizations is crucial in optimizing the utilization of waqf assets.
With support from various parties.
Muhammadiyah can develop a mode Malia.
Vol.
No.
2, pp.
June 2025 Arin Setiyowati.
Salma Nadia Salsabilla.
Dian Berkah.
Erdin Nadid.
Strategic Utilization of A Based on the Annual Report of the Indonesian Waqf Board, the National Waqf Index (IWN) in 2023 increased by 9.
85% from 0.
301 in 2023(BWI, 2.
Waqf, a philanthropic instrument in Islam, not only functions as a resource for social and religious activities but can also be used for economic purposes that support welfare (Ulfiana, 2.
According to a report from the Indonesian Waqf Board (BWI.
Go.
ID, 2.
, the potential for waqf assets in Indonesia is immense, but their utilization is still not optimal.
It showed an opportunity to develop a more effective strategy in optimizing waqf land (Azhari et al.
, 2.
In countries such as Kuwait.
Singapore, and South Africa, waqf plays a broader role in social services.
Various initiatives-often supported by independent institutions such as the Islamic Development Bank (IDB), aim to utilize waqf as a means of poverty alleviation and incorporate it into development strategies.
Historically, in Algeria in the pre-colonial era, during the Ottoman period, it is clear that waqf in general, and waqf institutions in particular, have played a primary role in the social life of society (BSI, 2.
The green economy emerged as a response to the environmental challenges in global society, including climate change, declining biodiversity, and the natural resource crisis (Redi et al.
, 2.
This concept began to develop in the late 20th and early 21st centuries, along with increasing awareness of the negative impacts of conventional economic activities on the environment (Muhajjir, 2.
The green economy is an approach to development that aims to improve human well-being and social justice while reducing environmental risks and resource scarcity (Anwar, 2.
In this context, the sustainable use of waqf land becomes very relevant.
Waqf and the green economy showed a strong relationship in building a sustainable, environmentally friendly economy.
Waqf can be one of the Islamic financial instruments that support various projects related to environmental conservation, renewable energy, and sustainable development.
For example, the Green Waqf concept aimed to fund initiatives that support environmental sustainability, reduce carbon emissions, and create inclusive social welfare through waste management or reforestation (Wahyuni et al.
, 2.
Furthermore, funding green infrastructure projects such as solar power plants, clean water management, and forest conservation, as carried out by the Indonesian Waqf Board through the Waqf Forest Thus, waqf is also a significant instrument to support a green economy that prioritizes a balance between economic development and environmental sustainability.
As one of the largest community organizations in Indonesia.
Muhammadiyah has a moral and social responsibility to utilize waqf assets to provide community and environmental By integrating the principles of a green economy in the management of waqf land.
Muhammadiyah can contribute to sustainable development.
It is under the Sustainable Development Goals (SDG.
, which emphasize the need for sustainable and inclusive management of natural resources (Kusuma et al.
, 2.
The strategy for utilizing waqf land assets can include various initiatives, such as organic agricultural land development, renewable energy generation, or other environmentally friendly projects (Bappenas, 2.
In the context of agriculture, the use of waqf land for organic farming can help increase productivity while preserving the environment.
A study showed that organic agriculture provides environmentally friendly practices, improves the quality of agricultural products, and provides added value for farmers (Bappenas, 2.
In addition, renewable energy projects, such as solar panels or bioenergy, can also be an alternative to utilizing waqf land.
According to research (Sawati & Amrizal, 2.
Malia.
Vol.
No.
2, pp.
June 2025 Arin Setiyowati.
Salma Nadia Salsabilla.
Dian Berkah.
Erdin Nadid.
Strategic Utilization of A investment in renewable energy could both reduce dependence on fossil fuel sources, create new jobs, and increase energy access for the community.
By utilizing waqf land for projects like this.
Muhammadiyah is a pioneer in the green economy transition.
However, a clear framework and collaboration between various parties are needed to implement this strategy, including the government, non-governmental organizations, and the private sector.
According to the report of the Ministry of Agrarian Affairs and Spatial Planning (Ahmad Atabik, 2.
, cooperation between the government and civil society organizations is pivotal in optimizing the use of waqf assets.
Supported by various parties.
Muhammadiyah can develop a sustainable waqf land management model that affects society positively.
Moreover.
Muhammadiyah can demonstrate its commitment to sustainable waqf asset management transparently and with accountability.
With all these potentials and challenges, optimizing Muhammadiyah's waqf land assets utilization to support a green economy is pivotal.
Through an innovative and collaborative approach.
Muhammadiyah can utilize waqf land as a resource to support environmental sustainability and community welfare.
THEORETICAL STUDY
Understanding The Concept and Exploiting Potential Waqf in Indonesia Waqf is one of the philanthropic instruments in Islam that plays a vital role in the social and economic development of the community (Azhari et al.
, 2.
Etymologically, the waqf means to hold or to stop (Huda et al.
, 2.
In Sharia, it is the retention of preserved assets At the same time, their benefits are utilized for charitable purposes (Ministry of Religious Affairs of the Republic of Indonesia, 2.
In Indonesia, land waqf is the most common form of donation from wakif .
for social, religious, or educational activities (Azhari et al.
, 2.
The legal basis for waqf in Indonesia was comprehensively established through various regulations that ensure legal certainty and provide direction for effective and accountable waqf The primary regulation is Law No.
41 of 2004 on Waqf, which defines waqf, outlines the types of waqf assets .
ncluding land, buildings, money, and other movable asset.
, and regulates the roles of nazhir .
aqf manager.
, supervision mechanisms, and waqf This law emphasizes that waqf is either a religious act or a social and economic practice for public welfare.
To clarify the implementation of the law the Government Regulation No.
42 of 2006 serves as its implementing regulation, covering technical matters such as land waqf registration procedures, the role of the Indonesian Waqf Board (BWI), and the mechanisms for managing and empowering waqf (Government Regulation of the Republic of Indonesia No.
42 of 2006, 2.
In addition, the Compilation of Islamic Law (KHI), specifically Chapter V on Waqf, provides the legal foundation from a sharia perspective, applicable within the jurisdiction of religious courts Compilation of Islamic Law, 2.
Moreover, the minister governs technical provisions by ministerial regulations, including (Regulation of the Minister of Religious Affairs No.
73 of 2.
concerning procedures for licensing and registering waqf land.
These legal instruments demonstrate that the state has established a robust framework for waqf Despite this solid legal foundation, the effective implementation of waqf management still heavily depends on the synergy among government institutions, nazhir, the Malia.
Vol.
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Salma Nadia Salsabilla.
Dian Berkah.
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Strategic Utilization of A community, and Islamic financial institutions to build awareness and capacity, especially in managing productive waqf.
The potential of waqf in Indonesia is enormous and promising.
It represents a key pillar of the Islamic economy with the ability to support national development, alleviate poverty, and enhance public welfare.
According to the Ministry of Religious Affairs.
Indonesia has 394,088 registered waqf land locations, covering an area of 52,750.
91 hectares.
These assets had various purposes: 44.
19% for mosques .
,609 location.
, 28.
35% for prayer rooms .
, 4.
for cemeteries .
, 10.
70% for schools .
, 3.
60% for Islamic boarding schools .
, and 8.
72% for other social functions .
However, despite the vast quantity of waqf land, its utilization remains suboptimal.
Four key factors contribute to this issue.
First, the uneven quality and capacity of nadzir .
aqf manager.
is a fundamental problem.
Many nadzir at the local level do not yet have managerial competence, legal understanding, and access to adequate training in managing waqf assets productively (SyaAoban & Setiyowati, 2.
econd, public awareness and the concept of productive waqf remain low.
Most people still associate waqf solely with religious functions .
uch as mosques or cemeterie.
, rather than as a vehicle for socio-economic activities like agriculture, education, or sharia-compliant businesses (Ulfiana, 2.
Third, there is a lack of regulatory support and government incentives, such as fiscal benefits .
, tax relief for productive waqf lan.
and simplified licensing processes for asset development (Yusuf, 2.
It has hindered many productive waqf initiatives because of prolonged and disjointed bureaucratic procedures.
Fourth, there is limited collaboration between Nazhir, the private sector.
Islamic financial institutions, and the government.
This lack of cross-sectoral cooperation has slowed the transformation of waqf land into a more dynamic and sustainable asset.
These four challenges suggest that while the quantity of waqf land is abundant, its quality of utilization remains far below its potential (Azhari et al.
, 2.
Therefore, comprehensive improvements are necessary, starting with strengthening the capacity of nazhir, increasing public education, promoting affirmative policies, and fostering strategic partnerships across sectors.
Such efforts are essential to optimizing waqf land for public welfare and contributing to green and sustainable development.
In conclusion, waqf particularly land waqf has significant potential to contribute to IndonesiaAos social and economic development.
Supported by an adequate legal framework, the main challenge lies in how to utilize waqf assets productively.
Achieving this requires strong collaboration between the government, waqf institutions, the community, and the private sector to overcome limited awareness, administrative barriers, and resource constraints.
With concerted efforts, waqf can serve as an effective instrument for enhancing community welfare and supporting IndonesiaAos sustainable development goals.
Green Economy Concept The green economy concept has become a vital paradigm in sustainable development, especially dealing with global environmental challenges such as climate change, ecosystem degradation, and social inequality (Anwar, 2.
The green economy complements economic growth, environmental conservation, and social welfare.
In the context of waqf management, this concept is relevant because waqf aims to support projects oriented towards sustainability and community welfare (Afandi, 2.
Malia.
Vol.
No.
2, pp.
June 2025 Arin Setiyowati.
Salma Nadia Salsabilla.
Dian Berkah.
Erdin Nadid.
Strategic Utilization of A According to the United Nations Environment Program (UNEP), a green economy is "an economy that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcity" (UNEP, n.
Developing this concept was in response to traditional economic development models that often exploit natural resources excessively and unsustainably.
The green economy encourages a switchover to a low-carbon, resource-efficient, and socially inclusive economic system (SaAoidah et al.
, 2.
The green economy had several key interrelated principles :
Resource Efficiency: Encouraging the efficient and responsible use of natural resources to reduce environmental impacts.
It includes efficient energy use, wise water management, and waste reduction through recycling and reuse (Romli, 2.
Low Carbon: Reducing greenhouse gas emissions by shifting from fossil fuels to renewable energy sources such as solar, wind, and biomass (Iskandar & Aqbar, 2.
Social Justice: foregrounding the importance of social justice by ensuring that the benefits of economic growth are distributed fairly.
This includes the creation of decent jobs, reducing economic disparities, and protecting vulnerable groups (Soehardi, 2.
Biodiversity and Ecosystem Conservation: Recognizing the importance of maintaining biodiversity and ecosystem functions to maintain environmental sustainability.
It involves forest area protection, critical land rehabilitation, and sustainable fisheries management (Mas et al.
, 2.
Good Governance: Building dynamic integration between institutions, based on relevant science, and local knowledge.
The green economy integrates interdisciplinary, environmentally friendly economies.
Green economy by integrated, collaborative, and coherent institutions, both horizontally across sectors and vertically between levels of government (Mas et al.
, 2.
The green economy is highly relevant in sustainable development because it offers a holistic approach to harmonize economic growth, environmental preservation, and social By adopting green economy principles, countries can reduce dependence on nonrenewable natural resources, reduce greenhouse gas emissions, and create sustainable jobs.
addition, the green economy also encourages innovation in clean technology and energy efficiency, which can increase economic competitiveness and resilience to climate change.
As an Islamic financial instrument, the waqf has great potential to support the green By managing waqf assets productively and sustainably, such as developing waqf land for organic farming, renewable energy generation, or other environmentally friendly projects, waqf can contribute to sustainable development.
In addition.
Islamic economic principles in the green economy, such as social justice, wise management of natural resources, and redistribution of wealth, can accelerate sustainable development goals.
METHODOLOGY
This study employs a qualitative method with a case study approach to explore the strategic management of waqf land within the Muhammadiyah organization, particularly in relation to its contribution to the green economy agenda.
The case study design was selected for its ability to capture complex and context-specific phenomena through in-depth This method allows the researcher to gain a holistic understanding of the institutional strategies and practices employed in optimizing waqf assets for sustainable Malia.
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Erdin Nadid.
Strategic Utilization of A Muhammadiyah was selected as the research setting due to its extensive experience and institutional commitment in managing productive waqf land and promoting environmentally conscious economic initiatives.
The data for this study were obtained from both primary and secondary sources.
Primary data were collected through in-depth semi-structured interviews with key informants, including waqf administrators, organizational leaders, project managers of green economybased waqf initiatives, and local community figures familiar with the socio-religious and environmental context.
Interviews were conducted until data saturation was achieved, ensuring a comprehensive exploration of the subject matter.
Secondary data were gathered from a variety of sources, including institutional reports from Muhammadiyah and the Indonesian Waqf Board, national waqf statistics, policy documents, academic journal articles, and other relevant literature on waqf management and sustainable development.
The data analysis followed an interactive qualitative model, consisting of data reduction, data display, and conclusion drawing.
Thematic analysis was employed to categorize and interpret the data, allowing the researcher to identify patterns, strategic approaches, opportunities, and challenges in the utilization of waqf land assets.
The process involved iterative reading and coding of interview transcripts and documents to develop a coherent and structured narrative aligned with the research objectives.
Ethical considerations were also taken into account, with all participants providing informed consent and confidentiality being maintained throughout the study.
While this methodological approach provides a rich and nuanced understanding of the topic, it also has certain limitations.
As a context-specific qualitative study, the findings may not be generalizable to other waqf institutions or Islamic organizations with different structures or contexts.
Additionally, the interpretive nature of the analysis may introduce subjectivity, and the reliance on a limited number of informants from within a single organization may lead to institutional bias.
Nonetheless, this case study offers valuable insights into the strategic role of waqf land management in advancing green economy principles, and it serves as a foundation for further research and policy development in Islamic philanthropic asset utilization.
The research flow is as follows:
Problem Identification and Determination of Research Focus Determination of Research Approach and Method Determination of Location and Research Subjects Data collection Reflections on the Limitations of the Method Drawing Conclusions and Verification Data Presentation and Thematic Analysis Data Reduction and Coding Figure 1.
Research flow
RESULT
This study analyzed the strategy of utilizing waqf land assets in the Muhammadiyah to support the Green Economy concept.
The study used a qualitative method with a case study Malia.
Vol.
No.
2, pp.
June 2025 Arin Setiyowati.
Salma Nadia Salsabilla.
Dian Berkah.
Erdin Nadid.
Strategic Utilization of A The main focus of this study is the waqf land management by Nadzir Muhammadiyah, especially in Bojonegoro and Lamongan.
The data collection was through indepth interviews with the Nadzir administrators.
Based on the results of the interviews, there are four main detailed themes: management of waqf land assets, utilization of waqf land for the green economy, collaboration and partnership, and challenges and optimization strategies.
These four themes provide a complete picture of how the waqf land management process works in the field practice and its contribution to social and environmental sustainability.
Management of Waqf Land Assets The first step of Nadzir Muhammadiyah of Bojonegoro and Lamongan in utilizing waqf land is to secure the status of the land through asset legalization.
Inventory is the initial activity to record all waqf land assets under the organization's authority.
In practice, many waqf lands do not have official certificates.
Some still use old administrative evidence, such as waqf pledge deeds or only verbal recognition from the waqif family.
Therefore, the nadzir took the initiative to clarify the legal status of these lands so that they have valid legal force and can be utilized optimally in the future.
This effort is carried out in stages because managing waqf land certification requires cooperation with the Office of Religious Affairs (KUA), the National Land Agency (BPN), and other authorized parties.
This inventory activity is either important from a legal perspective or an initial step in mapping the potential of land that can be utilized productively.
Waqf land that already has legality is easier to cultivate, access government or third-party assistance, and be included in the community's economic empowerment program.
Utilization of Waqf Land for the Green Economy After the legalization process, the next step is to utilize the waqf land for direct benefit activities to the community.
In this case, the Muhammadiyah Nadzir of Bojonegoro and Lamongan Regencies directs the use of waqf land to activities that support the principles of a green economy.
Land use is for education, agriculture, and environmentally friendly socioreligious activities.
For example, some of the land was productive agricultural land that involved the surrounding community.
This program helps to maintain environmental sustainability and to provide an economic impact for the farmers involved.
In addition, waqf land established educational institutions such as madrasahs or Islamic-based schools.
These schools prioritize the principles of sustainable education by integrating environmental values and Islamic spirituality into their curriculum.
This strategy is in accordance with Muhammadiyah's vision as a modern Islamic organization that focuses on ritual worship and pays attention to socio-economic and environmental aspects.
The use of waqf land with a green economy approach indicates that waqf management is not only traditional but has developed progressively by integrating the principles of sustainability.
Challenges and Optimization Strategies The management of waqf land at the regional level is not by individuals but by a team or waqf management committee formed by the Muhammadiyah Regional Leadership (PDM).
This team is tasked with managing waqf land from planning, implementation, monitoring, and This process is carried out in a structured manner to ensure that each waqf land is Malia.
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Strategic Utilization of A truly utilized following the purpose of the waqf and the vision of the Muhammadiyah The implementation process involved management collaboration with various parties, including the economic council, waqf council, and Muhammadiyah charitable regional This collaboration is vital to create program synergy and ensure that waqf land is not abandoned.
The management team also encourages partnerships with the private sector or Islamic financial institutions to support funding and productive projects on waqf land.
DISCUSSION