Integrated cash waqf house financing in Jakarta province : proposed model and theory of planned behaviour application

Abstract

This study investigates the potential of waqf to address the escalating housing demand in Indonesia, with a focus on Jakarta, where homeownership rates fall below 50%. It introduces the Integrated Cash Waqf House Financing (ICWHF) Model as a conceptual framework to provide housing financial services in Jakarta. This model involves a Cash Waqf Institution (CWI) that raises funds through both direct cash contributions and Waqf Certificates. These funds are either invested to generate profit or directly allocated for housing development. Employing a mixed-method approach, including interviews and surveys, the research assesses the suitability, applicability, and future prospects of the ICWHF Model. Expert interviews revealed a favorable reception of the model, indicating its potential benefits for Jakarta’s residents. Survey data, analyzed through multiple regression and based on the Theory of Planned Behaviour (TPB), demonstrate that Jakarta residents' willingness to support the ICWHF Model is positively influenced by their attitudes, subjective norms, perceived behavioral control, knowledge, and trustworthiness. The most significant predictors, in order of influence, are perceived behavioral control, subjective norms, trustworthiness, knowledge, and attitude. The study highlights the feasibility and acceptance of the ICWHF Model as a viable solution for Jakarta’s housing finance issues, offering an alternative to conventional interest based loans by adhering to Islamic financial principles. It addresses key challenges such as high interest rates and stringent requirements, thereby enhancing accessibility to home financing. For policymakers, the model provides a framework to improve corporate social responsibility, reduce housing development costs, and support broader homeownership goals. Future research should refine the model, address identified challenges, and improve public awareness to ensure its effective implementation and sustainability.