Waqf literacy in Indonesia : examining the determinants, behavioural impacts, and strategies for improvement

Abstract

Indonesia has prioritized waqf in its development planning 2025-2029 as an instrument to support socio-economic development. Unfortunately, a report from Indonesian Waqf Board (BWI) in 2020 shows the low waqf literacy level of Indonesian Muslims. Waqf literacy is necessary to improve waqf collection and its role to the socio-economic development. The existing waqf studies primary focussed on the historical, managerial, role to the socio-economic development, and its jurisprudential aspects. Studies on waqf literacy remains underexplored. Therefore, this study attempts to investigate waqf literacy in Indonesia: its determinant factors, its behavioural impacts, and strategies for enhancement. It was centred on four objectives: to measure waqf literacy level in Indonesia, to examine the impact of waqf literacy level on Indonesian Muslim behaviour in waqf donation, to investigate several socio-demographic factors and other qualitative factors influencing the literacy level, and to explore strategies for enhancing waqf literacy in Indonesia. A mixed method has been adopted. Data is collected through public survey and in-depth interview with waqf experts, and then analysed with several methods; descriptive statistics, Partial Least Squares Structural Equation Modelling (PLS-SEM), Logistic Regression, and thematic analysis. The results of the survey found an increase in waqf literacy level among Indonesian Muslims. People's literacy on waqf is at a moderate level (69.44), indicating an improvement from low levels of literacy as documented by BWI in 2020. In addition, the empirical results support the hypothesis that waqf literacy has a significant influence on waqf behaviour. Based on Bounded Rationality Theory and an extended Theory of Planned Behaviour (TPB) framework, waqf literacy has been proven to have a positive impact on attitude, social norms, perceived behavioural control (PBC), past behaviour, and indirect influence toward waqf intention mediated by those four components. Intriguingly, the effect of waqf literacy on most TPB variables appears to be non-linear (quadratic). Furthermore, the findings indicate that factual waqf literacy is significantly influenced by several socio-demographic factors, namely income, gender, level of education, and Islamic economics and finance education. Males with high income, high education level, and having learned Islamic economics and finance are more likely to have high waqf literacy. In addition, three qualitative factors have contributed to the low waqf literacy level: historical factors, misconceptions in the people's mindset, and lack of education and outreach. Numerous strategies should be implemented to enhance waqf literacy: intensifying waqf education and socialisation, enhancing the role of waqf stakeholders, optimising media, and improving the facilitating conditions. The findings are expected to call the attention of all waqf stakeholders toward waqf literacy. For the government, the result of the study may provide a better picture of the development of waqf literacy and its determinants; hence, inspiring future policies that would enhance the literacy of waqf. Furthermore, this study is also significant for nazirs or waqf practitioners aiming to increase the collection of waqf.