RECONSTRUCTING THE PARADIGM OF PRODUCTIVE WAQF: A MULTI-SECTOR MANAGEMENT MODEL FOR DEVELOPING AN INCLUSIVE ECONOMIC ECOSYSTEM IN RURAL COMMUNITIES

Abstract

Productive waqf is one of the Islamic social finance instruments that holds significant potential to promote inclusive economic development. However, in many regions, its management practices remain largely consumptive and have not yet been integrated across multiple sectors. This study seeks to reconstruct the paradigm of productive waqf through a case study of Masjid Al-Huda as a model of multi sectoral management in developing an inclusive economic ecosystem within rural communities. This research adopts a qualitative descriptive approach employing participatory observation, in-depth interviews, and documentation techniques for data collection. The findings indicate that the management of productive waqf at Masjid Al-Huda is implemented through a structured POAC framework (Planning, Organizing, Actuating, and Controlling), supported by RAPBM instruments, ijarah contracts, accountable financial administration, and supervision grounded in both administrative governance and local wisdom. The waqf assets, encompassing 12.7 hectares of land, are strategically managed to generate and distribute benefits across the agricultural, educational, and micro-enterprise sectors. A major finding of this study is the emergence of an economic magnet effect, whereby waqf investment in the educational sector organically stimulates economic demand for micro, small, and medium enterprises (MSMEs) within the surrounding community. This model demonstrates that mosque-based productive waqf management in rural areas can function as a catalyst for inclusive economic growth by simultaneously empowering farmers, educators, and micro-entrepreneurs.