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International Journal of Civil Engineering and Technology (IJCIET)
Volume 10, Issue 02, February 2019, pp. 814–819, Article ID: IJCIET_10_02_078
Available online at http://www.iaeme.com/ijciet/issues.asp?JType=IJCIET&VType=10&IType=2
ISSN Print: 0976-6308 and ISSN Online: 0976-6316
©IAEME Publication Scopus Indexed
EXAMINING THE PRACTICE OF WAQF-BASED
EDUCATION IN INDONESIA
Rafeah Saidon
Academy of Contemporary Islamic Studies,
Universiti Teknologi MARA, 40450 Shah Alam Selangor Malaysia
Mohd Afandi Mat Rani
Academy of Contemporary Islamic Studies,
Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia.
Mohd Dani Muhamad
Academy of Contemporary Islamic Studies,
Universiti Teknologi MARA, 40450 Shah Alam, Selangor,
Amal Hayati Ishak
Academy of Contemporary Islamic Studies,
Universiti Teknologi MARA, 40450 Shah Alam, Selangor.
ABSTRACT
The writing seeks to illustrate examples of waqf (endowment) in education that has
been implemented in Indonesia. Pondok Modern Darussalam Gontor (hereinafter
called PMDSG) is taken as a sample since it is a very successful waqf-oriented
educational institution. This concept of waqf-based education in PMDSG is a good
example of welfare-based education endowment which provides immense benefits to
the community at large. Thus, this research aims to examine the administration of
PMDSG particularly relating to its waqf management. In this research, the
researchers used both primary and secondary data. The primary data is based on the
interviews conducted to several respondents from PMDSG, while secondary data is
obtained from extensive literature in the form of books, journal articles, relevant
statutes and related data and documents. The finding of the research shows that the
waqf-based education implemented in PMDSG is a good model to be applied in
today’s education system. It is recommended that the administration of waqf in
education should be implemented in modern, professional, transparent, systematic and
well-planned manner by the government and private sector.
Key words: Consolidation Analysis; Settlement; Silt Content, GIS.
Cite this Article: Rafeah Saidon, Mohd Afandi Mat Rani, Mohd Dani Muhamad,
Amal Hayati Ishak, Examining the Practice of Waqf-Based Education in Indonesia,
International Journal of Civil Engineering and Technology (IJCIET) 10(2), 2019, pp.
814–819.
http://www.iaeme.com/IJCIET/issues.asp?JType=IJCIET&VType=10&IType=2
Rafeah Saidon, Mohd Afandi Mat Rani, Mohd Dani Muhamad, Amal Hayati Ishak
http://www.iaeme.com/IJCIET/index.asp 815 editor@iaeme.com
1. INTRODUCTION
Waqf educational institution is an organization or institution established from the contribution
of the Muslims or constructed on the land or building that was endowed for the purpose of
Islamic education. It is considered as one of the philanthropic attributes which signifies deeds
done for the well-being and the goodness of human being (Hazriah & Ismail 2018; Ahmad
Zaki, 2008). The significant of this type waqf is for the development of knowledge among
Muslims communities as it provides chances to acquire knowledge and also the best channel
to do good deeds (Mujaini et al. 2018; Latif, et al 2013). Anwar et al. (2018) and Mahamood
& Rahman (2015) suggest that waqf education can be alternative source of funding for
universities and it will reduce the burden of the government in supporting the university’s
expenses. This type of waqf is important in providing the financial assistance to the
community and also strengthening the academic quality of the students.
Waqf educational institution is not uncommon in Islam. It has been practised since the
days of the Prophet based on the hadith which stated that on the first day of the arrival of the
Prophet SAW in Medina during the Hijrah with Abu Bakar r.a., the Prophet took Sahl’s and
Suhail’s land to build a mosque and place of residence. (Al-Bukhari, 1992, No. 3906). The
practice of waqf educational institution was continued by the generation after the Prophet
SAW (M. Jandra, 2008). Al Azhar University for example which was built in 975 A.D. is the
world’s oldest university which provide free education from the elementary level up to the
tertiary level. In Malaysia on the other hand, waqf in education has been practised ever since
Islam was introduced in the Malay world. It exists in many forms such as hostel, scholarship,
allowance, building and learning tools such as tables, books etc. ((Mujaini et al. 2018).
In Indonesia, Pondok Modern Darussalam Gontor (hereinafter called PMDSG) is a good
example of a successful waqf-oriented educational institution which provides lots of benefits
to the Muslim society. This research aims to examine the administration of PMDSG
particularly relating to its management system of educational waqf. For this, the research
briefly explores the administration of waqf law in Indonesia and examine specifically the
management of educational waqf in PMDSG. Findings of the research highlight the success
of the PMDSG, particularly from the administrative aspect of waqf educational institution.
This research concludes that the administration and management system of educational waqf
in this PMDSG can be made as a good model to improve the educational waqf institutions
available particularly in Muslim countries all over the world.
2. RESEARCH METHODOLOGY
This research is relating to the practice of waqf-based education in Indonesia. Pondok Modern
Darussalam Gontor (PMDSG) is chosen for the case study for its familiarly known practice in
waqf oriented based-education. The purpose of this study is to examine the management of
waqf based education institution. In order to get the accurate data on the practice of waqf-
based education, interviews are conducted among selected respondents consists of teachers
and students of PMDSG. This semi-structured interview is conducted as it would provide
insight and information which could assist the researchers in examining the practise of waqf-
based education system in that institution. Prior to that, the secondary data is sought with the
purpose to investigate the administration of waqf law in Indonesia, the history and
management of PMDSG and forms of waqf contribution to PMDSG. For this secondary data,
library research is used in obtaining the relevant information, where references comprise
literature in the form of Quranic verses, traditions of the Prophet, books, journal articles and
some relevant laws and regulations. All the data is analysed by using content analysis
technique to ensure that the data gathered is matched with the objectives of the study.
Examining the Practice of Waqf-Based Education in Indonesia
http://www.iaeme.com/IJCIET/index.asp 816 editor@iaeme.com
3. FINDINGS AND DISCUSSION
3.1. The History of Pondok Modern Darussalam Gontor (PMDSG)
Pondok Modern Darussalam or also known as Pondok Gontor is one of thousands of Gontor’s
pondok pesantren that can be found throughout Indonesia. It was founded on 10 April 1926 or
12 Rabiul Awwal 1345 in Ponorogo, East Jawa by the three brothers, sons of Kiyai Santoso
Anom Besari. The three brothers are KH Ahmad Sahal (1901-1977), KH Zainuddin Fananie
(1905-1967) and KH Imam Zarkasyi (1910-1985). All three are known as the Trimurti. After
the death of Imam KH Zarkasyi in April 1985, Pondok Gontor has shifted to its second
generation of leadership, led by KH Shoiman Lukmanul Hakim, KH Abdullah Syukri
Zarkasyi, M.A dan KH Hasan Abdullah Sahal. This decision was made by Badan Waqf as the
patron to PMDSG (Abdullah Syukri, 2005a). In 1999, KH Shoiman Lukmanul Hakim has
been replaced by Imam KH Badri, and these three Kiyai have led the pondok until today.
To date, there are 11 groups or branches of PMDSG that can be found throughout
Indonesia and has a total of nearly 16,000 students. The education system in PMDSG has
been recognized by several international institutions such as the Ministry of Education
Republic of Egypt, Al-Azhar University of Egypt, Saudi Arabia Ministry of Education, and
the University of Punjab Lahore Pakistan. Several foreign universities also recognized
PMDSG studies such as the Islamic International University Islamabad, International Islamic
University Malaysia (IIUM), University of Damascus Syria, and several other universities
(Abdullah Syukri, 2005a).
3.2. Foundation's Role and Expansion of Waqf Pondok Modern Gontor
Yayasan Pemeliharaan dan Perluasan Waqf Pondok Modern (YPPWPM) is a foundation
which is responsible for organizing economic activities, particularly with regard to the
management and development of land. This is important to ensure that the source of funds
obtained for PMDSG is halal and to guarantee its survival. With regard to property owned by
PMDSG, it has two types of land, which are land for construction and land for agriculture.
These waqf lands were acquired through various ways, including from individuals’
contributions, purchasing, and exchanging of lands for waqf. Initially, since 1931, the lands
were endowed and managed by a body called Khizanah (Khizanatullah). During the
preliminary stages, Khizanah used these lands to undertake various forms of business such as
farming, agriculture and others. In 1953, Koperasi Pelajar (Kopel) was established to provide
various tools for teaching and learning managed entirely by the students. Later in 1954,
“kartu infaq” was established to raise funds with the aim to buy lands in order to expand
PMDSG, as well as to cover expenses in managing the pondok. The waqf lands are located in
Java, Lampung and Southeast Sulawesi (Abdullah Syukri, 2005b).
Currently, waqf lands are placed under the management of Yayasan Pemeliharaan dan
Perluasan Waqf Pondok Moden (YPPWPM) which was founded since March 18, 1959. To
facilitate the management of the lands, the foundation has established several sections as
follows:
 Conservation and Agriculture Division. This division undertakes and manages agricultural
lands, for example lands cultivated with crops such as paddy, maize and others. The
monitoring aspect for this division is performed by the Nazir or inspector. The Nazir consists
of local people who will be responsible for the foundation's efforts related to agricultural
projects on the waqf lands.
 Expansion and Equipment Division. This division is responsible for finding ways to expand
waqf, the status of related laws and administrative of waqf lands.
Rafeah Saidon, Mohd Afandi Mat Rani, Mohd Dani Muhamad, Amal Hayati Ishak
http://www.iaeme.com/IJCIET/index.asp 817 editor@iaeme.com
 Building Division. This division is responsible for constructing suitable buildings for the
purpose of education and business.
In terms of the use of the waqf lands, the Foundation has divided the lands into (Abdullah
Syukri, 2005a):
 Non-agricultural lands that are used for constructing buildings for educational purposes, such
as lecture rooms, hostels, laboratories, libraries, mosques, quarters for staff, etc.
 Agricultural lands that are used for growing various crops such as paddy, coconut trees, fruits,
and others.
 Non-Agricultural lands that are also used to locate factories owned by Pondok Moden Gontor
such as paddy mills, Darussalam printing factories and others.
3.3. Contribution of Waqf Lands to Pondok Moden Gontor
As explained by Abdullah Syukri, (2005b), in the preliminary stages, lands that have been
endowed were developed in three forms:
 Cultivation: the lands were cultivated by farmers and the profit was divided using 50:50 ratio.
 Renting: the lands were rented out to farmers and the rental fees were paid in accordance to
the growing season and total revenue earned.
 Leasing: the land will be leased and the tenants will pay according to the total revenue earned.
Based on the three forms above, the profits from land rental and leasing has provided
substantial returns to the PMDSG. For example, in 2003, the rent has contributed to 428
million rupiah, while the land lease amounted to 78.7 million rupiah. Meanwhile in 2004, the
rental profit have amounted to 350 million rupiah, while 78 million rupiah was obtained
through leasing. Apart from that, waqf lands have also been used to plant cloves. In 1983,
lands that are located in Jombok and Pule have produced a total of 1000 kg of cloves with a
value of 7,700 rupiah/kg. It should be noted that waqf lands developed for agricultural
purposes have provided good returns to PMDSG, supporting the costs related to teaching and
learning.
Apart from managing waqf lands, PMDSG also involved in many forms of businesses. All
businesses are called 'La Tansa' which means 'do not forget'. The businesses are placed
under a cooperative named Koperasi Pondok Pesantren (Kopontren) that was founded on 29th
of July 1996 and its establishment was approved by Badan Waqf Pondok during its
36th meetings in 1995 (Abdullah Syukri, 2005b).
According to Dr Syamsul Hadi, La Tansa Printing is the business that provides the highest
profit to the Koperasi. This is not surprising as the total number of PMDSG students is
approximately 17,000. (Dr Syamsul Hadi, personal communication, 2009). According to Mr.
Edi Isnan Hakim, there are 200 acres of land which has been endowed by a prominent
businessman in Indonesia, and now 1/3 of them have been developed for the construction of a
campus in Gontor Puteri 1, Ngawi. The rest are used for paddy cultivation, palm oil
plantation, as well as forest tree planting (timber) (Mr. Edi Isnan Hakim, personal
communication, 2009).
In the beginning, the forms of businesses were focused on providing basic students’ needs
such as teaching aids, food, etc. However, recently, the businesses have been developed to
cater the needs of the society as well. The example of such business includes book store,
cosmetics, restaurants, bakery, transportation, farming, poultry slaughtering etc.
Revenues gained from the businesses are managed by the Administration Division. It
must be deposited to this division on daily basis or either every three days or once a week.
According to Abdullah Shukri (2005b), all expenses occurred in managing the businesses
Examining the Practice of Waqf-Based Education in Indonesia
http://www.iaeme.com/IJCIET/index.asp 818 editor@iaeme.com
need to be controlled wisely. Each withdrawal from this division for any needs should be
informed to the leaders of the pondok.
All of the businesses and companies are wholly owned by Pondok Modern Darussalam
and not privately owned by any of the leaders, teachers or students of that institution. This is
to avoid misuse of the businesses for personal purposes. Moreover, this is also in line with the
philosophy of the PMDSG i.e. to work independently and collectively to safeguard the rights
and needs of the pondok without any personal interest. Trainings are also provided in the form
of entrepreneurship classes. General workers working for the businesses are selected from the
local people who live around the pondok, especially those who are jobless. Besides, the
management of pondok also provides training for staff who are employed in all its business
ventures.
4. CONCLUSIONS
The Gontor’s model of waqf-education has been proven to be successful without depending
on the support from the government or any other agencies. The principle of PMDSG is to
accept any contribution and sponsorship from any agencies, but it is not bound by the
contributor’s requirements. The management of this institution provides independent,
transparent and credible services. They have successfully produced quality alumni especially
among the Indonesianc and generally the people from the Malay Archipelago who are proven
in terms of their intellectual and entrepreneurial ability. The philosophy of PMDSG; "Live
with it (pondok), and do not depend on it" and “Pondok stands above for everyone" have been
fully accomplished. Based on the research findings, PMDSG is a good model to be applied in
modern education, especially to upgrade and enhance pondok. It also reflects the opportunity
of waqf in developing the education sector.
ACKNOWLEDGEMENT
The authors gratefully acknowledge the help of the Institute of Quality and Knowledge
Advancement (InQKA), Universiti Teknologi MARA (UiTM) for making available its
publication fund.
REFERENCES
[1] Abdullah Syukri, Z.M.A (2005a), Gontor dan Pembaharuan Pendidikan Pasantren, PT
Raja Gafindo Persada: Jakarta
[2] Abdullah Syukri, Z. M.A (2005b), Manjemen pesantren: Pengalaman Pondok Modern
Gontor, 2nd Edition, Trimurti Press: Ponorogo Jawa Timur
[3] Ahmad Zaki, H. A. L. (2008), Pengurusan Institusi Pendidikan Wakaf, dalam Marohaini
Yusoff et. al (ed), dalam Wakaf Pengurusan dan Sumbangannya Terhadap Pendidikan
Islam di Malaysia, Pusat Penerbitan UPENA, UiTM: Shah Alam.
[4] Al-Bukhari, A. A. M. I. (1992), Sahih al-Bukhari, Hadith No.3906, Vol.4, Beirut: Dar al-
Kutub al-‘Ilmiyyah.
[5] Anwar, A. P., Mohd Najwadi, Y. A. R., Mohamed Asmy, M. T. T., Zubir, A., Al Amin,
M., Mohamad I’sa, A.J.( 2018). Proposing Awqaf Alternative Plan (AAP): The Way
Forward& Sustainable Higher Education Finanacial System, International Journal of
Islamic Economics and Finance, 1(1), 40-57.
Rafeah Saidon, Mohd Afandi Mat Rani, Mohd Dani Muhamad, Amal Hayati Ishak
http://www.iaeme.com/IJCIET/index.asp 819 editor@iaeme.com
[6] Hazriah, H., Ismail, A. (2018). Determinants of Higher Education Islamic Endowment
(Waqf) attributes among Muslims in Malaysia, Journal of Islamic, Social, Economics and
Development, 3(12), 1-9.
[7] Jandra bin Moh. Janan (2008), Memproduktifkan Wakaf: Pengalaman Indonesia, dalam
Prosiding Konvensyen Kebangsaan Pengurusan Harta Pusaka, Wasiat dan Wakaf,
Anjuran Universiti Kebangsaan Malaysia dan MAIDAM, Pada 18-19 Oktober 2008
[8] Latiff, A., Sayin, B. Suyorno. S.S. S., Mat Rani, A., Hamid, A. H. (2013), The Practice
and Management of Waqf Education in Malaysia, Procedia – Social and Behavioral
Sciences, Vol. 90, 22-30.
[9] Mahamood, S. M., & Rahman, A., A. (2015). Financing Universities Through Waqf,
Pious Endowment: Is it Possible? Emerald Insight, 31(14), 430-453.
[10] Mujaini, W. K., Mohd Taib., M.S., Rifin. M.K.I., Aboo Talib Khalid. K. (2018). The
History of the Development of Higher Education Waqf in Malaysia. International Journal
of Civil Engineering and Technology (IJCIET), 9(3), 549-557.

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Ijciet 10 02_078

  • 1. http://www.iaeme.com/IJCIET/index.asp 814 editor@iaeme.com International Journal of Civil Engineering and Technology (IJCIET) Volume 10, Issue 02, February 2019, pp. 814–819, Article ID: IJCIET_10_02_078 Available online at http://www.iaeme.com/ijciet/issues.asp?JType=IJCIET&VType=10&IType=2 ISSN Print: 0976-6308 and ISSN Online: 0976-6316 ©IAEME Publication Scopus Indexed EXAMINING THE PRACTICE OF WAQF-BASED EDUCATION IN INDONESIA Rafeah Saidon Academy of Contemporary Islamic Studies, Universiti Teknologi MARA, 40450 Shah Alam Selangor Malaysia Mohd Afandi Mat Rani Academy of Contemporary Islamic Studies, Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia. Mohd Dani Muhamad Academy of Contemporary Islamic Studies, Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Amal Hayati Ishak Academy of Contemporary Islamic Studies, Universiti Teknologi MARA, 40450 Shah Alam, Selangor. ABSTRACT The writing seeks to illustrate examples of waqf (endowment) in education that has been implemented in Indonesia. Pondok Modern Darussalam Gontor (hereinafter called PMDSG) is taken as a sample since it is a very successful waqf-oriented educational institution. This concept of waqf-based education in PMDSG is a good example of welfare-based education endowment which provides immense benefits to the community at large. Thus, this research aims to examine the administration of PMDSG particularly relating to its waqf management. In this research, the researchers used both primary and secondary data. The primary data is based on the interviews conducted to several respondents from PMDSG, while secondary data is obtained from extensive literature in the form of books, journal articles, relevant statutes and related data and documents. The finding of the research shows that the waqf-based education implemented in PMDSG is a good model to be applied in today’s education system. It is recommended that the administration of waqf in education should be implemented in modern, professional, transparent, systematic and well-planned manner by the government and private sector. Key words: Consolidation Analysis; Settlement; Silt Content, GIS. Cite this Article: Rafeah Saidon, Mohd Afandi Mat Rani, Mohd Dani Muhamad, Amal Hayati Ishak, Examining the Practice of Waqf-Based Education in Indonesia, International Journal of Civil Engineering and Technology (IJCIET) 10(2), 2019, pp. 814–819. http://www.iaeme.com/IJCIET/issues.asp?JType=IJCIET&VType=10&IType=2
  • 2. Rafeah Saidon, Mohd Afandi Mat Rani, Mohd Dani Muhamad, Amal Hayati Ishak http://www.iaeme.com/IJCIET/index.asp 815 editor@iaeme.com 1. INTRODUCTION Waqf educational institution is an organization or institution established from the contribution of the Muslims or constructed on the land or building that was endowed for the purpose of Islamic education. It is considered as one of the philanthropic attributes which signifies deeds done for the well-being and the goodness of human being (Hazriah & Ismail 2018; Ahmad Zaki, 2008). The significant of this type waqf is for the development of knowledge among Muslims communities as it provides chances to acquire knowledge and also the best channel to do good deeds (Mujaini et al. 2018; Latif, et al 2013). Anwar et al. (2018) and Mahamood & Rahman (2015) suggest that waqf education can be alternative source of funding for universities and it will reduce the burden of the government in supporting the university’s expenses. This type of waqf is important in providing the financial assistance to the community and also strengthening the academic quality of the students. Waqf educational institution is not uncommon in Islam. It has been practised since the days of the Prophet based on the hadith which stated that on the first day of the arrival of the Prophet SAW in Medina during the Hijrah with Abu Bakar r.a., the Prophet took Sahl’s and Suhail’s land to build a mosque and place of residence. (Al-Bukhari, 1992, No. 3906). The practice of waqf educational institution was continued by the generation after the Prophet SAW (M. Jandra, 2008). Al Azhar University for example which was built in 975 A.D. is the world’s oldest university which provide free education from the elementary level up to the tertiary level. In Malaysia on the other hand, waqf in education has been practised ever since Islam was introduced in the Malay world. It exists in many forms such as hostel, scholarship, allowance, building and learning tools such as tables, books etc. ((Mujaini et al. 2018). In Indonesia, Pondok Modern Darussalam Gontor (hereinafter called PMDSG) is a good example of a successful waqf-oriented educational institution which provides lots of benefits to the Muslim society. This research aims to examine the administration of PMDSG particularly relating to its management system of educational waqf. For this, the research briefly explores the administration of waqf law in Indonesia and examine specifically the management of educational waqf in PMDSG. Findings of the research highlight the success of the PMDSG, particularly from the administrative aspect of waqf educational institution. This research concludes that the administration and management system of educational waqf in this PMDSG can be made as a good model to improve the educational waqf institutions available particularly in Muslim countries all over the world. 2. RESEARCH METHODOLOGY This research is relating to the practice of waqf-based education in Indonesia. Pondok Modern Darussalam Gontor (PMDSG) is chosen for the case study for its familiarly known practice in waqf oriented based-education. The purpose of this study is to examine the management of waqf based education institution. In order to get the accurate data on the practice of waqf- based education, interviews are conducted among selected respondents consists of teachers and students of PMDSG. This semi-structured interview is conducted as it would provide insight and information which could assist the researchers in examining the practise of waqf- based education system in that institution. Prior to that, the secondary data is sought with the purpose to investigate the administration of waqf law in Indonesia, the history and management of PMDSG and forms of waqf contribution to PMDSG. For this secondary data, library research is used in obtaining the relevant information, where references comprise literature in the form of Quranic verses, traditions of the Prophet, books, journal articles and some relevant laws and regulations. All the data is analysed by using content analysis technique to ensure that the data gathered is matched with the objectives of the study.
  • 3. Examining the Practice of Waqf-Based Education in Indonesia http://www.iaeme.com/IJCIET/index.asp 816 editor@iaeme.com 3. FINDINGS AND DISCUSSION 3.1. The History of Pondok Modern Darussalam Gontor (PMDSG) Pondok Modern Darussalam or also known as Pondok Gontor is one of thousands of Gontor’s pondok pesantren that can be found throughout Indonesia. It was founded on 10 April 1926 or 12 Rabiul Awwal 1345 in Ponorogo, East Jawa by the three brothers, sons of Kiyai Santoso Anom Besari. The three brothers are KH Ahmad Sahal (1901-1977), KH Zainuddin Fananie (1905-1967) and KH Imam Zarkasyi (1910-1985). All three are known as the Trimurti. After the death of Imam KH Zarkasyi in April 1985, Pondok Gontor has shifted to its second generation of leadership, led by KH Shoiman Lukmanul Hakim, KH Abdullah Syukri Zarkasyi, M.A dan KH Hasan Abdullah Sahal. This decision was made by Badan Waqf as the patron to PMDSG (Abdullah Syukri, 2005a). In 1999, KH Shoiman Lukmanul Hakim has been replaced by Imam KH Badri, and these three Kiyai have led the pondok until today. To date, there are 11 groups or branches of PMDSG that can be found throughout Indonesia and has a total of nearly 16,000 students. The education system in PMDSG has been recognized by several international institutions such as the Ministry of Education Republic of Egypt, Al-Azhar University of Egypt, Saudi Arabia Ministry of Education, and the University of Punjab Lahore Pakistan. Several foreign universities also recognized PMDSG studies such as the Islamic International University Islamabad, International Islamic University Malaysia (IIUM), University of Damascus Syria, and several other universities (Abdullah Syukri, 2005a). 3.2. Foundation's Role and Expansion of Waqf Pondok Modern Gontor Yayasan Pemeliharaan dan Perluasan Waqf Pondok Modern (YPPWPM) is a foundation which is responsible for organizing economic activities, particularly with regard to the management and development of land. This is important to ensure that the source of funds obtained for PMDSG is halal and to guarantee its survival. With regard to property owned by PMDSG, it has two types of land, which are land for construction and land for agriculture. These waqf lands were acquired through various ways, including from individuals’ contributions, purchasing, and exchanging of lands for waqf. Initially, since 1931, the lands were endowed and managed by a body called Khizanah (Khizanatullah). During the preliminary stages, Khizanah used these lands to undertake various forms of business such as farming, agriculture and others. In 1953, Koperasi Pelajar (Kopel) was established to provide various tools for teaching and learning managed entirely by the students. Later in 1954, “kartu infaq” was established to raise funds with the aim to buy lands in order to expand PMDSG, as well as to cover expenses in managing the pondok. The waqf lands are located in Java, Lampung and Southeast Sulawesi (Abdullah Syukri, 2005b). Currently, waqf lands are placed under the management of Yayasan Pemeliharaan dan Perluasan Waqf Pondok Moden (YPPWPM) which was founded since March 18, 1959. To facilitate the management of the lands, the foundation has established several sections as follows:  Conservation and Agriculture Division. This division undertakes and manages agricultural lands, for example lands cultivated with crops such as paddy, maize and others. The monitoring aspect for this division is performed by the Nazir or inspector. The Nazir consists of local people who will be responsible for the foundation's efforts related to agricultural projects on the waqf lands.  Expansion and Equipment Division. This division is responsible for finding ways to expand waqf, the status of related laws and administrative of waqf lands.
  • 4. Rafeah Saidon, Mohd Afandi Mat Rani, Mohd Dani Muhamad, Amal Hayati Ishak http://www.iaeme.com/IJCIET/index.asp 817 editor@iaeme.com  Building Division. This division is responsible for constructing suitable buildings for the purpose of education and business. In terms of the use of the waqf lands, the Foundation has divided the lands into (Abdullah Syukri, 2005a):  Non-agricultural lands that are used for constructing buildings for educational purposes, such as lecture rooms, hostels, laboratories, libraries, mosques, quarters for staff, etc.  Agricultural lands that are used for growing various crops such as paddy, coconut trees, fruits, and others.  Non-Agricultural lands that are also used to locate factories owned by Pondok Moden Gontor such as paddy mills, Darussalam printing factories and others. 3.3. Contribution of Waqf Lands to Pondok Moden Gontor As explained by Abdullah Syukri, (2005b), in the preliminary stages, lands that have been endowed were developed in three forms:  Cultivation: the lands were cultivated by farmers and the profit was divided using 50:50 ratio.  Renting: the lands were rented out to farmers and the rental fees were paid in accordance to the growing season and total revenue earned.  Leasing: the land will be leased and the tenants will pay according to the total revenue earned. Based on the three forms above, the profits from land rental and leasing has provided substantial returns to the PMDSG. For example, in 2003, the rent has contributed to 428 million rupiah, while the land lease amounted to 78.7 million rupiah. Meanwhile in 2004, the rental profit have amounted to 350 million rupiah, while 78 million rupiah was obtained through leasing. Apart from that, waqf lands have also been used to plant cloves. In 1983, lands that are located in Jombok and Pule have produced a total of 1000 kg of cloves with a value of 7,700 rupiah/kg. It should be noted that waqf lands developed for agricultural purposes have provided good returns to PMDSG, supporting the costs related to teaching and learning. Apart from managing waqf lands, PMDSG also involved in many forms of businesses. All businesses are called 'La Tansa' which means 'do not forget'. The businesses are placed under a cooperative named Koperasi Pondok Pesantren (Kopontren) that was founded on 29th of July 1996 and its establishment was approved by Badan Waqf Pondok during its 36th meetings in 1995 (Abdullah Syukri, 2005b). According to Dr Syamsul Hadi, La Tansa Printing is the business that provides the highest profit to the Koperasi. This is not surprising as the total number of PMDSG students is approximately 17,000. (Dr Syamsul Hadi, personal communication, 2009). According to Mr. Edi Isnan Hakim, there are 200 acres of land which has been endowed by a prominent businessman in Indonesia, and now 1/3 of them have been developed for the construction of a campus in Gontor Puteri 1, Ngawi. The rest are used for paddy cultivation, palm oil plantation, as well as forest tree planting (timber) (Mr. Edi Isnan Hakim, personal communication, 2009). In the beginning, the forms of businesses were focused on providing basic students’ needs such as teaching aids, food, etc. However, recently, the businesses have been developed to cater the needs of the society as well. The example of such business includes book store, cosmetics, restaurants, bakery, transportation, farming, poultry slaughtering etc. Revenues gained from the businesses are managed by the Administration Division. It must be deposited to this division on daily basis or either every three days or once a week. According to Abdullah Shukri (2005b), all expenses occurred in managing the businesses
  • 5. Examining the Practice of Waqf-Based Education in Indonesia http://www.iaeme.com/IJCIET/index.asp 818 editor@iaeme.com need to be controlled wisely. Each withdrawal from this division for any needs should be informed to the leaders of the pondok. All of the businesses and companies are wholly owned by Pondok Modern Darussalam and not privately owned by any of the leaders, teachers or students of that institution. This is to avoid misuse of the businesses for personal purposes. Moreover, this is also in line with the philosophy of the PMDSG i.e. to work independently and collectively to safeguard the rights and needs of the pondok without any personal interest. Trainings are also provided in the form of entrepreneurship classes. General workers working for the businesses are selected from the local people who live around the pondok, especially those who are jobless. Besides, the management of pondok also provides training for staff who are employed in all its business ventures. 4. CONCLUSIONS The Gontor’s model of waqf-education has been proven to be successful without depending on the support from the government or any other agencies. The principle of PMDSG is to accept any contribution and sponsorship from any agencies, but it is not bound by the contributor’s requirements. The management of this institution provides independent, transparent and credible services. They have successfully produced quality alumni especially among the Indonesianc and generally the people from the Malay Archipelago who are proven in terms of their intellectual and entrepreneurial ability. The philosophy of PMDSG; "Live with it (pondok), and do not depend on it" and “Pondok stands above for everyone" have been fully accomplished. Based on the research findings, PMDSG is a good model to be applied in modern education, especially to upgrade and enhance pondok. It also reflects the opportunity of waqf in developing the education sector. ACKNOWLEDGEMENT The authors gratefully acknowledge the help of the Institute of Quality and Knowledge Advancement (InQKA), Universiti Teknologi MARA (UiTM) for making available its publication fund. REFERENCES [1] Abdullah Syukri, Z.M.A (2005a), Gontor dan Pembaharuan Pendidikan Pasantren, PT Raja Gafindo Persada: Jakarta [2] Abdullah Syukri, Z. M.A (2005b), Manjemen pesantren: Pengalaman Pondok Modern Gontor, 2nd Edition, Trimurti Press: Ponorogo Jawa Timur [3] Ahmad Zaki, H. A. L. (2008), Pengurusan Institusi Pendidikan Wakaf, dalam Marohaini Yusoff et. al (ed), dalam Wakaf Pengurusan dan Sumbangannya Terhadap Pendidikan Islam di Malaysia, Pusat Penerbitan UPENA, UiTM: Shah Alam. [4] Al-Bukhari, A. A. M. I. (1992), Sahih al-Bukhari, Hadith No.3906, Vol.4, Beirut: Dar al- Kutub al-‘Ilmiyyah. [5] Anwar, A. P., Mohd Najwadi, Y. A. R., Mohamed Asmy, M. T. T., Zubir, A., Al Amin, M., Mohamad I’sa, A.J.( 2018). Proposing Awqaf Alternative Plan (AAP): The Way Forward& Sustainable Higher Education Finanacial System, International Journal of Islamic Economics and Finance, 1(1), 40-57.
  • 6. Rafeah Saidon, Mohd Afandi Mat Rani, Mohd Dani Muhamad, Amal Hayati Ishak http://www.iaeme.com/IJCIET/index.asp 819 editor@iaeme.com [6] Hazriah, H., Ismail, A. (2018). Determinants of Higher Education Islamic Endowment (Waqf) attributes among Muslims in Malaysia, Journal of Islamic, Social, Economics and Development, 3(12), 1-9. [7] Jandra bin Moh. Janan (2008), Memproduktifkan Wakaf: Pengalaman Indonesia, dalam Prosiding Konvensyen Kebangsaan Pengurusan Harta Pusaka, Wasiat dan Wakaf, Anjuran Universiti Kebangsaan Malaysia dan MAIDAM, Pada 18-19 Oktober 2008 [8] Latiff, A., Sayin, B. Suyorno. S.S. S., Mat Rani, A., Hamid, A. H. (2013), The Practice and Management of Waqf Education in Malaysia, Procedia – Social and Behavioral Sciences, Vol. 90, 22-30. [9] Mahamood, S. M., & Rahman, A., A. (2015). Financing Universities Through Waqf, Pious Endowment: Is it Possible? Emerald Insight, 31(14), 430-453. [10] Mujaini, W. K., Mohd Taib., M.S., Rifin. M.K.I., Aboo Talib Khalid. K. (2018). The History of the Development of Higher Education Waqf in Malaysia. International Journal of Civil Engineering and Technology (IJCIET), 9(3), 549-557.