Waqf and Impact Investment in Indonesia: Lessons from Social Impact Bond (SIB)
Lisa Listiana
Waqf Center for Indonesian Development and Studies (WaCIDS), Indonesia
Abstract
In waqf sector, comparison between budget and realization of the state budget (APBN) represents the mainstream information that available for public access. On other hand, there is a mechanism in which the result or success become prerequisite for investment return, hence equipped with measurable explicit outcome called as Social Impact Bond (SIB). SIB is acknowledged as an innovative financial instrument that enable impact investment scheme by blending both social and financial return at the same time. As some studies associated SIB concept with social finance and Socially Responsible Investment (SRI) which contains value of maqasid shariah, Islamic finance may take lesson from it. Unfortunately, the concept of SIB not yet become popular in Indonesia, as the largest Muslim population country. Acknowledged this situation, current paper aims to synthesize the concept of SIB and identify its existing models across jurisdictions. Take lesson from SIB-s characteristics, this paper will also propose partnership model in waqf sector, which essentially embraces impact investment in nature. Meta-synthesis of the literatures on SIB is employed in this study. Review of existing reports and publications by relevant institutions complement the systematic literature review (SLR) in current study. This study represents the pioneer work that attempts to elaborate SIB concept and waqf within Indonesian environment
Keywords: Social Impact Bond, Waqf, Indonesia
Topic: Islamic Philantrophy