IDENTIFYING THE OPTIMAL CASH WAQF LINKED SUKUK: INDONESIAN EXPERIENCE

The National Waqf Body (BWI) and Ministry of Finance (MoF) have implemented a model called Cash Linked Sukuk (CWLS) issued the Government Indonesia (Islamic securities) namely (SWI) in 2020. intention behind applying CWLS is to accelerate waqf as one Islamic social funds particularly, optimize collection cash with securities serve public at same time diversify sovereign (Sukuk) financial market. Indeed, it very crucial assess feasibility new instrument market despite its sharia compliant aspect. Especially, needs undergo robust academic assessment such formulation model, optimal level each party government, waqif, management agencies (Nadzhir), etc . This objective main motivation research. paper will answer following research questions: (i) What quantitative formula SWI especially issuers holders? impacts taking into account two types waqif? Finally, what for project financing, given total investment? Then, technically constructs develops formulas BWI, (MoF), partners Nadzhir investors (waqif). derived based on SWI’s terms conditions, flow, intentions tenor SWI. Later, are measured by formulating present future values investment Net Present Value (NPV) limit theories find variables determining via financing waqif temporary permanent waqif. contributes (SWI instrument) identifies implementation which might benefit stakeholders.