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

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  • 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
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    References listed on IDEAS

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    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.
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    1. Muhammad Aiman Awalluddin & Anisa Safiah Maznorbalia & Mohd Ramlan Arshad, 2024. "Revolutionizing Waqf Management: Harnessing the Fourth Industrial Revolution for Waqf 4.0 Transformation," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(8), pages 2270-2283, August.

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