The fusion of sukuk and cash waqf is believed to support the development of cash waqf practice in Indonesia. This is the main reason for the existence of CWLS to increase the volume of cash waqf transactions in Indonesia. Evaluating the fundraising process of CWLS is essential to measure whether the CWLS innovation has different practices with cash waqf in general and will provide better insight into cash waqf practices (Chatzitheodorou et al., 2019; Darus et al., 2017).
Because this instrument is relatively new, previous research has not discussed in detail the critical factors of the CWLS fundraising process. Unlike the traditional practice of waqf, which focuses on fixed or immovable assets, monetary waqf instead uses movable assets that are not consumed, such as securities, vehicles, intellectual property rights, lease rights, precious metals, and cash (Mohsin , 2013). . At first glance, monetary waqf is similar to zakat, infaq and sadaqa (ZIS), where a person can donate his money, property or assets to a foundation that will be handed over to him.
Thanks to its flexibility, cash waqf can be combined with complex monetary financial instruments with high returns. The issuance of Cash Waqf-Linked Sukuk (CWLS) in Indonesia is one of the concrete shreds of evidence. It is defined as a cash waqf where the money raised is invested in a safe, low-risk Sukuk guaranteed by the government (Ismal et al., 2015; Musari, 2016).
It is expected that the issuance of CWLS by the stakeholders can diversify the investment vehicles for the group of investors concerned with socio-environmental impacts (Ismal et al., 2015).
SWOT Analysis for Evaluating the Fundraising Process of CWLS
As a weakness, the SWOT method fails to link internal and external factors, causing the "missing link problem". The problem called "the blue sky" or the "silver lining problem" haunts the users of this method of analysis. Despite the advantages and disadvantages, many previous studies used this method of analysis to evaluate a strategy, a product, a performance or a particular phenomenon in organizations.
2011) analyzed the significant concerns and factors for green entrepreneurship development in Greece to provide insights for public policy organizations to encourage entrepreneurs to invest and produce sustainable businesses. Paliwal (2006) maximized the SWOT methodology to assess India's Environmental Impact Assessment (EIA), conducted by its government. Şeker and Özgürler (2012) analyzed the Turkish consumer electronics company using the SWOT method to determine the best decisions and strategies for electronic companies to win the masses.
Research Methodology
Therefore, this study followed the procedure of Rangkuti (2016) and Salusu (2015) by conducting two steps of qualitative observation and data collection. This research identified the critical elements of the Internal Factor Analysis Strategy (IFAS) and the External Factor Analysis Strategy (EFAS). This study evaluated the critical elements of IFAS and EFAS to find out which would be a strategy priority, by weighing and rating each variable in a questionnaire survey (Kurniawan & Haryati, 2017).
This study followed the suggestion of Roscoe and Byars (1971) by administering the questionnaire to 34 respondents as the threshold sample size. Once the data has been fully collected, the critical elements of the fundraising process included in the data are entered into the SWOT (Strengths, Weaknesses, Opportunities, and Threats) matrix. In the quantitative step, a descriptive quantitative approach is carried out using the SWOT quadrant of Pearce et al.
Therefore, this study used a mixed method that uses interviews and weighted questionnaires with multiple groups of experts as a source of information and insights. Furthermore, this study also used triangulation procedures to obtain additional justification support for the findings.
Finding and Discussion
- Stakeholders Identification
- Internal and External Factor Analysis Strategy Identification (IFAS & EFAS)
- The Evaluation of IFAS and EFAS
- SWOT Matrix and Alternative Strategies for CWLS Fundraising
This research identified the IFAS and EFAS factors by interviewing seven key informants in the CWLS practice setting. The literature review and interview process found five critical strengths and weaknesses of the CWLS fundraising process. The return of the main waqf funds can be guaranteed within the next five years.
The risk of the CWLS instrument is insured by the state (Ministry of Finance) so that the principal funds are safe. The development of these two instruments gives a good prospect for the growth of CWLS practices in Indonesia. Second, the macroeconomic condition also affects the development of CWLS in Indonesia, especially during the pandemic of COVID-19.
Some groups still reject the CWLS practice transaction that will reduce the number of markets. The table above shows that there are six critical strengths and six weaknesses of CWLS based on the expert-based interview and literature review process. The positive number (37.44) of the total score indicates that the strengths of CWLS are more significant than the weaknesses.
According to the quadrant of the matrix above, the best alternative strategy for CWLS fundraising process in Indonesia is Quadrant I (positive-positive). This means that stakeholders should focus on maximizing all available opportunities using the strengths of CWLS. The digitization process also makes the acceleration of the development of this instrument more efficient and effective.
The digitalization of CWLS makes CLWS's fundraising process more flexible, open, efficient and efficient. Furthermore, stakeholders can maximize the power of the crowd while waiting for the solution to be ready. The matrix table shows another important alternative strategy, namely the practical implications of the findings to be implemented.
The strategy suggests that the stakeholders should revise the regulation of cash waqf to optimize the implementation of CWLS. Overall, all alternative strategies resulting from the expert-based interview and questionnaire survey process led to the development of the CWLS fundraising process to be more reliable, practical and easier to access.
Conclusion, Limitations, and Future Research Suggestions
2021) found that trust, easy access, and perceived convenience of waqf are essential determinants of cash waqf fundraising by Islamic banks. This research has supported and highlighted previous studies that digitalization of the fundraising process will increase the confidence and comfort of investors or waqif, especially public investors. An important limitation of this study is the use of a qualitative approach and the small number of respondents in the questionnaire survey.
Future research should extend this research by completing the assessment using a quantitative approach to obtain an overall objective result and strategy. Moreover, because this social and financial instrument is relatively new, further research could explore other possible perspectives, including the performance and impact of CWLS on social welfare. Determinants of cash waqf fund collection in Malaysian Islamic banking institutions: Empirical insights from employees.
The origin and meaning of names describing investment practices that incorporate ESG issues in the academic literature. Influencer marketing: How message value and credibility influence consumer trust in branded content on social media. Cash waqf from the perspective of Majelis Ulama Indonesia (MUI) and the scholars of Aceh: an analysis.
An examination of the sample size limitations commonly imposed on the use of the chi-square statistic.
