Overcoming barriers to optimizing cash waqf linked sukuk: A DEMATEL-ANP approach

The Indonesian government has promoted Cash Waqf Linked Sukuk (CWLS) as an Islamic Social Finance (ISF) initiative. However, as of 2023, only four CWLS series had been issued, with sales falling short of their potential. This study investigates the factors behind low CWLS sales using the Decision Ma...

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Main Authors: Muhamad Nafik Hadi Ryandono, Tika Widiastuti, Dian Filianti, Anidah Robani, Muhammad Ubaidillah Al Mustofa, Fitriah Dwi Susilowati, Ida Wijayanti, Eka Puspa Dewi, Nikmatul Atiya
Format: Article
Language:English
Published: Elsevier 2025-01-01
Series:Social Sciences and Humanities Open
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Online Access:http://www.sciencedirect.com/science/article/pii/S259029112500316X
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author Muhamad Nafik Hadi Ryandono
Tika Widiastuti
Dian Filianti
Anidah Robani
Muhammad Ubaidillah Al Mustofa
Fitriah Dwi Susilowati
Ida Wijayanti
Eka Puspa Dewi
Nikmatul Atiya
author_facet Muhamad Nafik Hadi Ryandono
Tika Widiastuti
Dian Filianti
Anidah Robani
Muhammad Ubaidillah Al Mustofa
Fitriah Dwi Susilowati
Ida Wijayanti
Eka Puspa Dewi
Nikmatul Atiya
author_sort Muhamad Nafik Hadi Ryandono
collection DOAJ
description The Indonesian government has promoted Cash Waqf Linked Sukuk (CWLS) as an Islamic Social Finance (ISF) initiative. However, as of 2023, only four CWLS series had been issued, with sales falling short of their potential. This study investigates the factors behind low CWLS sales using the Decision Making Trial and Evaluation Laboratory (DEMATEL) and the Analytic Network Process (ANP) methods to analyze the interrelationships between various barriers to CWLS adoption. Primary data was collected from experts in Islamic finance, waqf management, and regulatory institutions through structured interviews and surveys. The DEMATEL method was used to identify cause-and-effect relationships among factors, while ANP ranked the barriers in terms of their significance. The findings reveal that public distrust in CWLS managers (0.052630) is the main issue, followed by concerns about professionalism (0.049331), literacy (0.044858), transparency (0.044482), and competitiveness (0.027556). Based on these findings, the study proposes strategic solutions such as governance standardization, Nazhir certification, and improved public literacy initiatives. These insights offer actionable implications for policymakers, Islamic financial institutions, and waqf stakeholders, providing a practical roadmap to enhance participation, governance, and competitiveness in CWLS and similar Islamic finance instruments. Although technological solutions were not explored, the study provides five strategic recommendations for improving CWLS sales.
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publishDate 2025-01-01
publisher Elsevier
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spelling doaj-art-c097bb0ad9d9401ba44aa00689ecf18c2025-08-20T02:36:26ZengElsevierSocial Sciences and Humanities Open2590-29112025-01-011110158810.1016/j.ssaho.2025.101588Overcoming barriers to optimizing cash waqf linked sukuk: A DEMATEL-ANP approachMuhamad Nafik Hadi Ryandono0Tika Widiastuti1Dian Filianti2Anidah Robani3Muhammad Ubaidillah Al Mustofa4Fitriah Dwi Susilowati5Ida Wijayanti6Eka Puspa Dewi7Nikmatul Atiya8Department of Sharia Economic, Faculty of Economic and Business, Airlangga University, Jl. Airlangga No.4, Surabaya, 60286, IndonesiaDepartment of Sharia Economic, Faculty of Economic and Business, Airlangga University, Jl. Airlangga No.4, Surabaya, 60286, IndonesiaDepartment of Sharia Economic, Faculty of Economic and Business, Airlangga University, Jl. Airlangga No.4, Surabaya, 60286, IndonesiaInstitute of Technology Management and Entrepreneurship, Universiti Teknikal Malaysia Melaka, Hang Tuah Jaya, 76100, Melaka, Malaysia; Corresponding author.Department of Development Studies, Faculty of Creative Design and Digital Business, Institut Teknologi Sepuluh Nopember, Surabaya, 60111, IndonesiaProgram Study of Islamic Economic, Faculty of Economic and Business, Universitas Negeri Surabaya, Jl. Ketintang No.2, Ketintang, Surabaya, 60231, IndonesiaDepartment of Sharia Economic, Faculty of Economic and Business, Airlangga University, Jl. Airlangga No.4, Surabaya, 60286, IndonesiaDepartment of Sharia Economic, Faculty of Economic and Business, Airlangga University, Jl. Airlangga No.4, Surabaya, 60286, IndonesiaDepartment of Sharia Economic, Faculty of Economic and Business, Airlangga University, Jl. Airlangga No.4, Surabaya, 60286, IndonesiaThe Indonesian government has promoted Cash Waqf Linked Sukuk (CWLS) as an Islamic Social Finance (ISF) initiative. However, as of 2023, only four CWLS series had been issued, with sales falling short of their potential. This study investigates the factors behind low CWLS sales using the Decision Making Trial and Evaluation Laboratory (DEMATEL) and the Analytic Network Process (ANP) methods to analyze the interrelationships between various barriers to CWLS adoption. Primary data was collected from experts in Islamic finance, waqf management, and regulatory institutions through structured interviews and surveys. The DEMATEL method was used to identify cause-and-effect relationships among factors, while ANP ranked the barriers in terms of their significance. The findings reveal that public distrust in CWLS managers (0.052630) is the main issue, followed by concerns about professionalism (0.049331), literacy (0.044858), transparency (0.044482), and competitiveness (0.027556). Based on these findings, the study proposes strategic solutions such as governance standardization, Nazhir certification, and improved public literacy initiatives. These insights offer actionable implications for policymakers, Islamic financial institutions, and waqf stakeholders, providing a practical roadmap to enhance participation, governance, and competitiveness in CWLS and similar Islamic finance instruments. Although technological solutions were not explored, the study provides five strategic recommendations for improving CWLS sales.http://www.sciencedirect.com/science/article/pii/S259029112500316XCWLSTrustLiteracyProfessionalismProblemsSolutions
spellingShingle Muhamad Nafik Hadi Ryandono
Tika Widiastuti
Dian Filianti
Anidah Robani
Muhammad Ubaidillah Al Mustofa
Fitriah Dwi Susilowati
Ida Wijayanti
Eka Puspa Dewi
Nikmatul Atiya
Overcoming barriers to optimizing cash waqf linked sukuk: A DEMATEL-ANP approach
Social Sciences and Humanities Open
CWLS
Trust
Literacy
Professionalism
Problems
Solutions
title Overcoming barriers to optimizing cash waqf linked sukuk: A DEMATEL-ANP approach
title_full Overcoming barriers to optimizing cash waqf linked sukuk: A DEMATEL-ANP approach
title_fullStr Overcoming barriers to optimizing cash waqf linked sukuk: A DEMATEL-ANP approach
title_full_unstemmed Overcoming barriers to optimizing cash waqf linked sukuk: A DEMATEL-ANP approach
title_short Overcoming barriers to optimizing cash waqf linked sukuk: A DEMATEL-ANP approach
title_sort overcoming barriers to optimizing cash waqf linked sukuk a dematel anp approach
topic CWLS
Trust
Literacy
Professionalism
Problems
Solutions
url http://www.sciencedirect.com/science/article/pii/S259029112500316X
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