Environmentally Friendly Waqf Model: A Response to Sustainable Economic Development and the Presence of a Circular Economy

Authors

  • Swadia Gandhi Mahardika Faculty of Economics and Business, Mulawarman University, Indonesia Author
  • Afifa Tanweer School of Health Sciences, University of Management and Technology, Lahore, Pakistan Author

DOI:

https://doi.org/10.24235/jiesbi.v2i1.180

Keywords:

Waqf Model, Circular Economy, Environmental Economy, Sustainable Economic Development

Abstract

The excessive utilization of natural resources and the accumulation of waste pose serious challenges to sustainable development. The circular economy has emerged as a viable solution by emphasizing the reuse and recycling of materials. This study explores the significance of sustainable development and the necessity of a circular economy in achieving it. Effective waste management plays a crucial role in environmental protection and enhances living standards. In this context, waqf can contribute to environmental sustainability through the concept of green waqf. This study employed the literature review method to identify, review, evaluate, and synthesize relevant research on the phenomenon of interest and related research questions. By implementing the literature review approach, journal articles were systematically reviewed, and each process followed predetermined steps and procedures. The findings revealed that the proposed green waqf model consisted of five stages. First, the waqif transfers cash waqf to a waqf institution (nazir). Second, the nazir allocates waqf funds to establish a training center equipped with waste management technology to enhance human resource development. Third, the nazir, through the training center, provides skill development programs to empower beneficiaries (mauquf 'alaih). Fourth, beneficiaries are expected to secure employment and increase their productivity after completing the training. Fifth, continuous monitoring and evaluation must be conducted to ensure ongoing improvements. Ultimately, the proposed green waqf model is expected to contribute to both economic and environmental sustainability.

References

Afiyah, I. (2025). The Existence of Islamic Law in Indonesia in the Millennial Era in Supporting the Sustainable Development Goals ( SDGs ): Maqashid Sharia Perspective. 3(1), 27–40.

Aghasafari, H., Karbasi, A., Mohammadi, H., & Calisti, R. (2020). Determination of the best strategies for development of organic farming: A SWOT – Fuzzy Analytic Network Process approach. Journal of Cleaner Production, 277, 124039. https://doi.org/10.1016/j.jclepro.2020.124039

Ardhistira, A. M. et. al. (2020). Application of Carbonization Technology in Medical Waste Treatment as A Sustainable Waste to Energy Conversion in Indonesia. 8th Asian Academic Society International Conference (AASIC).

Ascarya, A., Hosen, M. N., & Rahmawati, S. (2022). Designing simple productive waqf models for Indonesia. International Journal of Ethics and Systems, 38(3), 380–401. https://doi.org/10.1108/IJOES-07-2020-0101

Ardiyansyah, R., & Kasdi, A. (2021). Strategies and Optimizing the Role of Productive Waqf in Economic Empowerment of the Ummah. Ziswaf: Jurnal Zakat Dan Wakaf, 8(1), 61. https://doi.org/10.21043/ziswaf.v8i1.9871

Aziz, A., & Prabuwono, A. S. (2023). Hajj Funds Management Based on Maq ā ṣ id Al-Shar ī ʿ ah ; A Proposal for Indonesian. AL-IHKAM: Jurnal Hukum & Pranata Sosial, 18(2), 544–567.

Biresselioglu, M. E., Kilinc, D., Onater-Isberk, E., & Yelkenci, T. (2016). Estimating the political, economic and environmental factors impact on the installed wind capacity development: A system GMM approach. Renewable Energy, 96, 636–644. https://doi.org/10.1016/j.renene.2016.05.034

Bonaraja Purba, Novita Sari Br Kaban, Rahel P.L Hutahaean, Teofilus Rahmat Zandroto, & Imam Nur Dirham. (2024). Konsep Ekonomi Sirkular Model Circular Bisnis Circular dan Ekonomi Karbon Sirkular. Economic Reviews Journal, 3(3), 2029–2034. https://doi.org/10.56709/mrj.v3i3.305

Budiman, M. A. (2011). The Role of Waqf for Environmental Protection in Indonesia. Aceh Development International Conference 2011 (ADIC 2011), UKM-Bangi, Malaysia.

Chen, S., Liu, Z., Jiang, S., & Hou, H. (2020). Carbonization: A feasible route for reutilization of plastic wastes. Science of The Total Environment, 710, 136250. https://doi.org/10.1016/j.scitotenv.2019.136250

Czerwińska, K., Śliz, M., & Wilk, M. (2022). Hydrothermal carbonization process: Fundamentals, main parameter characteristics and possible applications including an effective method of SARS-CoV-2 mitigation in sewage sludge. A review. Renewable and Sustainable Energy Reviews, 154, 111873. https://doi.org/10.1016/j.rser.2021.111873

Calicioglu, Ö., & Bogdanski, A. (2021). Linking the bioeconomy to the 2030 sustainable development agenda: Can SDG indicators be used to monitor progress towards a sustainable bioeconomy? New Biotechnology, 61(November 2020), 40–49. https://doi.org/10.1016/j.nbt.2020.10.010

Campbell-Johnston, K., Vermeulen, W. J. V., Reike, D., & Brullot, S. (2020). The Circular Economy and Cascading: Towards a Framework. Resources, Conservation and Recycling: X, 7, 100038. https://doi.org/10.1016/j.rcrx.2020.100038

Creswell, J. W. (2016). Research design: pendekatan metode kualitatif, kuantitatif, dan campuran. Creswell, J. W.

Dabbous, A., & Tarhini, A. (2021). Does the sharing economy promote sustainable economic development and energy efficiency? Evidence from OECD countries. Journal of Innovation and Knowledge, 6(1), 58–68. https://doi.org/10.1016/j.jik.2020.11.001

Directorate General of Waste and Hazardous Materials Management. (2022). Waste Composition Based on Type.

Fanani, A., Muhammad, N., & Omar, S. (2020). The Strategy of Waqf Influencing through the International Center of Awqaf Studies Indonesia. Mimbar, 36(1), 21–45. https://doi.org/10.29313/mimbar.v36i1

Fatira, M., & Nasution, A. W. (2019). Boosting The Welfare of Business Community: Implementing The Model of Islamic Micro Bank of Waqf in Pesantren. AL-FALAH : Journal of Islamic Economics, 4(1), 21–34. https://doi.org/10.29240/alfalah.v4i1.771

Guo, B., Geng, Y., Sterr, T., Zhu, Q., & Liu, Y. (2017). Investigating public awareness on circular economy in western China: A case of Urumqi Midong. Journal of Cleaner Production, 142, 2177–2186. https://doi.org/10.1016/j.jclepro.2016.11.063

Gupta, R. K., & Nguyen, T. A. (2022). Energy from Waste. CRC Press. https://doi.org/10.1201/9781003178354

Hasbi, M. Z. N., Munajat, M., & Qoyum, A. (2023). Human Development Index from the Islamic Perspective: Roles of Taxation, Zakah, and Health and Education Expenditures. Jurnal Ekonomi Malaysia, 57(1), –. http://dx.doi.org/10.17576/JEM-2023-5701-08

Hasan, N. F. & S. (2022). Enhancing Green Waqf for Carbonization Technology: Opportunities for Sustainable Development Goals (SDGs) in Indonesia. . . El-Barka: Journal of Islamic Economics and Business, 05(02).

Iman, N., Santoso, A., & Kurniawan, E. (2021). Wakif’s Behavior in Money Waqf: an Approach to Theory of Planned Behavior. Ekuilibrium : Jurnal Ilmiah Bidang Ilmu Ekonomi, 16(1), 12. https://doi.org/10.24269/ekuilibrium.v16i1.3184

Intan Zahira, M. Zidny Nafi’ Hasbi, S. F. (2024). Strengthening Economic and Development Relations Transformation Efforts Towards Golden Indonesia 2045. Journal of Islamic Economics and Business Ethics, 1(3), 125–135. https://doi.org/10.24235/jiesbi.v1i2.133

Iswanaji, C., Nafi’ Hasbi, M. Z., Salekhah, F., & Amin, M. (2021). Implementasi Analitycal Networking Process (Anp) Distribusi Zakat Terhadap Pembangunan Ekonomi Masyarakat Berkelanjutan (Study Kasus Lembaga Baznas Kabupaten Jember Jawa Timur). Jurnal Tabarru’: Islamic Banking and Finance, 4(1), 195–208. https://doi.org/10.25299/jtb.2021.vol4(1).6681

Iñiguez, M. E., Conesa, J. A., & Fullana, A. (2019). Hydrothermal carbonization (HTC) of marine plastic debris. Fuel, 257, 116033. https://doi.org/10.1016/j.fuel.2019.116033

Jannah, M., Ali, K. M., Fatria, B. L., Sarkawi, A. A., & Othman, J. (2021). Enhancing Waqf Forest Sustainability Through Agroforestry: Case Study from Bogor Waqf Forest, Bogor, Indonesia. Islam Realitas: Journal of Islamic and Social Studies, 7(1), 57. https://doi.org/10.30983/islam_realitas.v7i1.4454

Lasmiatun, K. M. T., & Manteghi, N. (2025). The Impact of Artificial Intelligence ( AI ) Implementation on Islamic Financial Literacy and Global Economic Changes in the Banking World. 2(1), 23–43. https://doi.org/10.24235/jiesbiv1i3

M.Zidny Nafi’ Hasbi. (2021). Portrait Of Economic Life In The Age Of The Prophet. Al-Mutsla : Jurnal Ilmu-Ilmu Keislaman Dan Kemasyarakatan, 3(1), 1–8.

Mahmassani, S. (2021). Waqf empowerment for the autonomy of Islamic boarding school (pesantren); study of modern Islamic boarding school (Pondok) Tazakka Batang. Journal of Islamic Economics, Management, and Business (JIEMB), 2(2), 1–22. https://doi.org/10.21580/jiemb.2020.2.2.6845

Meyer, E. L., Overen, O. K., Obileke, K. C., Botha, J. J., Anderson, J. J., Koatla, T. A. B., Thubela, T., Khamkham, T. I., & Ngqeleni, V. D. (2021). Financial and economic feasibility of bio-digesters for rural residential demand-side management and sustainable development. Energy Reports, 7, 1728–1741. https://doi.org/10.1016/j.egyr.2021.03.013

Muhafidin, D. (2020). The role of fiscal policy and monetary policy in environmental degradation in Indonesia. International Journal of Energy Economics and Policy, 10(3), 504–510. https://doi.org/10.32479/ijeep.9586

MacArthur, E. (2015). Towards a circular economy: business rationale for an accelerated transition. Greener Manag International, 20, 3.

Nafi’ Hasbi, M. Z. (2022). The Need for Revitalizing Zakah Regulation Toward Productive Zakah. Al’Adalah, 25(2), 125–136. https://doi.org/10.35719/aladalah.v25i2.302

Panchal, R., Singh, A., & Diwan, H. (2021). Does circular economy performance lead to sustainable development? – A systematic literature review. Journal of Environmental Management, 293(May), 112811. https://doi.org/10.1016/j.jenvman.2021.112811

Ralph, N. (2021). A conceptual merging of circular economy, degrowth, and conviviality design approaches applied to renewable energy technology. Journal of Cleaner Production, 319, 128549. https://doi.org/10.1016/j.jclepro.2021.128549

Ramirez-Contreras, N. E., Fontanilla-Díaz, C. A., Pardo, L. E., Delgado, T., Munar-Florez, D., Wicke, B., Ruíz-Delgado, J., van der Hilst, F., Garcia-Nuñez, J. A., Mosquera-Montoya, M., & Faaij, A. P. C. (2022). Integral analysis of environmental and economic performance of combined agricultural intensification & bioenergy production in the Orinoquia region. Journal of Environmental Management. https://doi.org/10.1016/j.jenvman.2021.114137

Rivai, R. S., & Anugrah, I. S. (2020). Concept and Implementation of Sustainable Agricultural Development in Indonesia. Forum Penelitian Agro Ekonomi, 7(2), 34–47.

Rizal, A., Fauziyah, N. E., Ma’, A., & Susilo, A. (2020). Integrating Zakah And Waqf For Developing Islamic Economic Boarding School (Iebs) Project In Indonesia. In Journal of Islamic Economics and Philanthropy (JIEP). E-ISSN (Vol. 03, Issue 02).

Rusydiana, A. S. (2018). An Analysis of Cash Waqf Development in Indonesia Using Interpretive Structural Modeling (ISM). Journal of Islamic Economics Lariba, 4(1), 1–12.

Seadon, J. K. (2010). Sustainable waste management systems. Journal of Cleaner Production, 18(16–17), 1639–1651. https://doi.org/10.1016/j.jclepro.2010.07.009

Sharma, H. B., Sarmah, A. K., & Dubey, B. (2020). Hydrothermal carbonization of renewable waste biomass for solid biofuel production: A discussion on process mechanism, the influence of process parameters, environmental performance and fuel properties of hydrochar. Renewable and Sustainable Energy Reviews, 123, 109761. https://doi.org/10.1016/j.rser.2020.109761

Shen, Y. (2020). A review on hydrothermal carbonization of biomass and plastic wastes to energy products. Biomass and Bioenergy, 134, 105479. https://doi.org/10.1016/j.biombioe.2020.105479

Sugiyono. (2014). Metode Penelitian Manajemen. Alfabeta.

Supriyanti, S. S., Nofiana, D., & Pertiwi, G. (2025). How Do Pancasila Economics and Islamic Economics Relate to Financial Governance Policies in Indonesia ? 2(1), 1–22. https://doi.org/10.24235/jiesbiv1i3

Syamsuri, S., Putri, E. R., Zein, A. R., & Handayani, R. (2021). Sukuk Waqf for the Development of Islamic Educational Institutions. ISLAMICONOMIC: Jurnal Ekonomi Islam, 12(1), 39–52. https://doi.org/10.32678/ijei.v12i1.267

Syamsuri, S., & Wibisono, V. F. (2019). Strategies of Islamic Education Institutions in Fundraising Waqf to Create Economic Independence in the Era of the 4.0 Industrial Revolution. At-Ta’dib, 14(1), 35. https://doi.org/10.21111/at-tadib.v14i1.3532

Thaker & Pitchay. (2021). Cash Waqf Model for Micro Enterprises’ Human Capital Development. ISRA International Journal of Islamic Finance, 13(1), 66–82.

Vlaskin, M. S., & Vladimirov, G. N. (2018). Hydrothermal Carbonization of Organic Components from Municipal Solid Waste. Theoretical Foundations of Chemical Engineering, 52(6), 996–1003. https://doi.org/10.1134/S0040579518050421

Wakaf, J. (2024). Regulatory Factors Creating Waqf Bank the Third Sector Organizations: A Case Study in Indonesia. AL-AWQAF, 17(2), 109–126.

Waqf Center for Indonesian Development & Studies (WaCIDS). (2021). Green Waqf: Waqf as a Solution to Environmental Recovery and Energy Independence.

Wildana, M. D. A. & A. M. (2021). Waqf and Waste: An Unexplored Potential. Advance in Economics, Business, and Management Research. Proceedings of the Brawijaya International Conference on Economics, Business and Finance 2021 (BICEBF 2021), 26.

Yue, S., Shen, Y., & Yuan, J. (2019). Sustainable total factor productivity growth for 55 states: An application of the new Malmquist index considering ecological footprint and human development index. Resources, Conservation and Recycling, 146(March), 475–483. https://doi.org/10.1016/j.resconrec.2019.03.035

Downloads

Published

2025-03-17

Issue

Section

Articles

How to Cite

Environmentally Friendly Waqf Model: A Response to Sustainable Economic Development and the Presence of a Circular Economy. (2025). Journal of Lslamic Economics and Bussines Ethics, 2(1), 68-93. https://doi.org/10.24235/jiesbi.v2i1.180

Most read articles by the same author(s)

1 2 > >>