Cash Waqf and Food Security: Institutional Readiness and Socio‑Economic Impact in Indonesia and Bangladesh
DOI:
https://doi.org/10.66277/jsm.1.1.318Keywords:
cash waqf; institutional readiness; socio economic impact; Indonesia and Bangladesh; food security.Abstract
Cash waqf holds promise for addressing food insecurity in Muslim‑majority countries, yet institutional and cross‑country adoption gaps persist. This study aims to compare institutional readiness (regulation, nāẓir, financial infrastructure, digitalisation), assess the contribution of cash waqf to reducing the Prevalence of Undernourishment (PoU), and identify enablers and barriers in Indonesia and Bangladesh. A comparative thematic literature review was conducted on peer‑reviewed sources published between 2015 and 2025. Results show that Indonesia has stronger legal‑institutional integration through Cash Waqf Linked Sukuk (CWLS) and state coordination, while Bangladesh excels in bank‑led accessibility via Mudaraba Waqf Cash Deposit Accounts (MWCDA). However, Indonesia faces complexity and low transparency; Bangladesh suffers from weak legal protection and limited observability. Applying Rogers’ Diffusion of Innovation Theory, the study finds that all five innovation attributes must be improved simultaneously. The conclusion implies a hybrid governance model combining Indonesia’s regulatory strength with Bangladesh’s banking access is recommended. Policy reforms should include establishing an independent waqf body in Bangladesh, simplifying CWLS for small donors, enhancing digital literacy, and ensuring transparent impact reporting to sustainably reduce PoU.
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