Managing waqf assets in Muhammadiyah

ISBN 978-967-394-230-5 [PROCEEDINGS OF IDMAC2015]
9th ISDEV International Islamic Development Management Conference
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WAQF ASSET MANAGEMENT ISSUES
AN EXPERIENCE OF MUHAMMADIYAH IN THE DISTRICT OF JEMBER
INDONESIA
Aminullah Elhady1
University of Muhammadiyah Jember, Indonesia
Email: aminelhady@yahoo.com
Mobile phone and whatsapp: +628124990060
Abstract
Muhammadiyah is a non-governmental organization as a legal entity in Indonesia. In
2010 the Central Board of Muhammadiyah recorded its waqf asset as much as
20,945,504 m² of land in the institutions of Muhammadiyah throughout Indonesia,
which earmarked for education from preschool up to high school, higher education,
hospitals, orphanages, and mosques. The amount mentioned above has already had
legal documents with the name of Muhammadiyah. It should be assumed that there
are a lot of assets that the documents reached not the status of rights for waqf of
Muhammadiyah with various causes and reasons. Some of them because of the status
process are still in progress. There are assets owned by Muhammadiyah since a long
time and used for social activities of Muhammadiyah, but the status of some is still
not settled. This is the problem to be discussed here. This study takes the experience
of the District Board of Muhammadiyah Jember (PDM Jember): how they manage
their assets, the background of the problems in the management, issues around these
assets, and the steps taken to resolve these problems. Such the problems of PDM
Jember are not only faced by Muhammadiyah, but also by other social institutions,
and also in other areas in Indonesia, with the different characteristic either simpler or
more complicated. The result of this study is expected to be input and contribution to
the Islamic social institutions and to encourage the managers to improve the
seriousness in managing the Islamic assets.
Keywords: management, waqf, Muhammadiyah, Islamic institution
1
The author is a senior lecturer in Islamic Thought of the State Institute for Islamic Studies, Jember.

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INTRODUCTION
Indonesia is a country with the largest Muslim population in the world. As the
largest, theoretically it has the largest religious institutions in number with the largest
waqf assets, at least, if it is seen and counted from the land on which the buildings
are built for houses of worship and prayer, especially when added with educational
islamic institutions or other religious institutions. In the fact of waqf issues,
Indonesia lags far behind the other Muslim countries, such as Egypt, Algeria, Saudi
Arabia, Kuwait, and Turkey. That's why there must be an effort to empower
socialization and understanding of waqf in Indonesia.
The issues of waqf in Indonesia are fairly complex, which needs an extra attention
and a special handling to cope. One of the problem roots is the low awareness of the
people to document religious public assets into the waqf status of law.
Many people think that all the houses of worship are in the waqf status, which may
not belong to individuals, the ownership can not be transferred, and they have
become public property in order to worship Allah (called waqf lillah). As well as
educational institutions such as madrasas and boarding schools (pesantren), most
people assume that the institutions are in charitable status that no longer owned by
individuals or groups, they have become public property prepared for the worship of
God.
Although the number of houses of worship and prayer quite a lot, but really not
everything built on the land is in waqf status. That is the reality found in Indonesia,
in the midst of the largest group of Muslims in the world.
Theoretically, the issues of waqf can be handled well, since in the governmental
structure of the Ministry of Religious Affairs, there is a directorate of waqf, namely
the Directorate of Waqf Empowerment under control of the Directorate General of
Islamic Community Guidance. This directorate is a suborganization in charge of
waqf affairs in Indonesia. This directorate consists of 4 sub-organizational structure:
the Sub-Directorate of Waqf Information Systems, Sub-Directorate of Waqf
Guidence and Cooperation, Sub-Directorate of Waqf Certification and Mutation of
Property, and Sub-Directorate of Waqf Nazir and Organization Development.
Moreover in the realm of law, Indonesia also has a legislation that specifically
regulates the waqf affairs, namely Law Number 41 Year 2004 on Waqf, and the
Governmental Regulation Number 42 Year 2006 on the Implementation of LN
41/2004 on Waqf.
Many of the Islamic institutions organized by Islamic foundations, Muslim groups,
or other private Islamic institutions are still in problems with their management of
waqf assets within the area of authority, because of various backgrounds and reasons.
Muhammadiyah, one of Indonesia's Islamic organization that manages many assets
of waqf, already have documentation standards and mechanisms for securing assets
of waqf. However, it does not mean that there is no problem with the management of
waqf assets of Muhammadiyah. This issue is to be discussed in this paper, as a muse
for a wide audience, especially for those who manage or pay attention to the
management of waqf assets.

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WAQF ASSETS AND THE MANAGEMENT
Although the waqf came from the Islamic tradition and teachings, but it is not just for
the benefit of Muslims. The history shows that the waqf can support the progress of a
country, especially a country with a majority Muslim population such as Indonesia.
Here, the waqf is something that has been known in the midst of the Indonesian
people, both traditional communities and Muslim ones.
The term of waqf is adopted from the Arabic word waqafa-waqfan, literally means
confinement and prohibition or causing a thing to stop or stand still. The legal
meaning of waqf is the detention of a specific thing in the ownership of the waqif
and the devoting of its profit or products in charity or other good objectives.
General Authority of Islamic Affairs and Endowments, United Arab Emirates stated
that the waqf literally is al-habs wa al-man‘u (to hold and to protect), and
terminologically means withstand substance of ownership for one's possessions and
give alms with the benefits on things allowed. The property whether it be a house
building, garden, or money.2
There are various definitions of waqf according to the Muslim scholars. Sulaiman
Rashid in his book Al-Fiqh al-Islami, said that the waqf is withholding an object with
eternal substance that is benefitable and granted in the way of goodness.3
An-
Nawawi defined the waqf as one's property that can be taken its benefits but not for
himself while it remains available to him and used the benefits for the good and draw
closer to God. Other scholars said that the waqf is withholding treasure that can be
used to maintain the integrity of the property, by deciding the ownership of the
property from the owner for the permissible acts.
In the Compilation of Islamic Law (of Indonesia), stated that the waqf is a legal act
of a person or group of persons or legal entities that separates most of his possessions
and institutionalize it in perpetuity for the purpose of worship or other public
purposes in accordance with the teachings of Islam. While the Law (of the Republic
of Indonesia) number 41 year 2004 states that the waqf is a legal act of waqif (parties
donating his property) to separate and / or transfer part of his property to either
permanently or for a specified period in accordance with its importance for religious
purposes and / or the general welfare by Shariah.
From the definitions mentioned above, concluded that the waqf property is a treasure
that has separated the ownership status from the individuals’ or entity that is intended
for worship or public interest.
As for the religious arguments that states explicitly on the waqf is not found.
However cues about it can be read in the Quran surah Alu Imran (3): 92, that “Ye will
not attain unto piety until ye spend of that ye love”. 4
There is no explicite statement
in the Quran regarding the waqf, but we find derived from a number of the Sunnah
(traditions of the Prophet). It’s reported from Ibn Umar, that Umar ibn Khattab got
2
http://www.awqaf.gov.ae/Waqf.aspx?SectionID=2&RefID=9
3
Sulaiman Rashid, Al-Fiqh al-Islami, p. 339.
4
Muhammad Pickthall, The Meaning of the Glorious Quran, p. 59.

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land in Khaybar, so he came to the Prophet and asked to advise him about it. The
Prophet said, “If you prefer, make the property inalienable and give the profit from it
to charity”. It was reported that Umar gave it away as alms, that the land itself would
not be sold, inherited or donated. He gave it away for the poor, the relatives, the
slaves, the jihad fi sabilillah, the travelers and the guests. And it will not be held
against him who administers it if he consumes some of its yield in an appropriate
manner or feeds a friend who does not enrich himself by means of it.5
The event later
became the motivation for the Companions to do the waqfs. It is said that after that
event there were 80 companions of the Prophet surrender their property as waqf in
Medina.6
In the waqf required that the property handed over as waqf must be a treasure that is
legitimate in ownership status, can be done by individuals, organizations or legal
entities as waqif. Individuals can take action of waqf if eligible, those are mature,
sensible, and not hindered to perform legal acts. The Waqf of an organization can
only be done if it meets the provisions of the organization for donating property
belonging in accordance with its statutes. While the waqf of a legal entity can only
be done if it meets the provisions of the legal entity for donating property owned in
accordance with its statutes.
To receive and manage the waqf assetes there is a party called Nazir. The party is
responsible for maintaining and taking care of waqf property. Nazir include
individuals, organizations, and legal entities. As the waqif must meet the
requirements, the nazir also required namely Muslim, mature, trustworthy, capable of
physically and spiritually, and not hindered to perform legal acts.
THE PROBLEM OF WAQF IN INDONESIA
The Ministry of Religius Affairs recorded data of 2013, national asset of waqf in
Indonesia reached 3.70879 billion square meters of land spread over 228 607
locations throughout Indonesia. If the price of land is assumed to Rp 200,000 per
square meter, the value of Indonesia's waqf assets reached more than Rp 741 trillion.
The distribution of waqf assets in Indonesia and allocation: big mosque (masjid)
43.78%, small and medium mosque (only for daily prayers not for Friday prayers,
musalla) 30.16%, schools (madrasas) 10.58%, boarding schools (pesantren) 2.96%,
cemetery 4.18%, and other social services 8.34%, as shown in the picture below:7
5
Al-Bukhari, in al-Maktabah al-Shamilah, hadith number 2772.
6
Sulaiman Rashid, Al-Fiqh al-Islami, p. 340.
7
http://siwak.kemenag.go.id/p_guna.php (8 November 2015)

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Figure 1
Furthermore, judging from the state of these assets certified as waqf or uncertified,
can be seen in the following table.
Table 1
Designation Number of
Location
Certified Unsertified Total %
Big mosque 99,470 70,519 28,951 43.78
Musalla 68,527 48,301 20,226 30.16
School/madrasa 24,029 15,161 8,868 10.58
Boarding school 6,718 3,460 3,258 2.96
Cemetery 9,497 5,792 3,705 4.18
Other social services 18,945 10,568 8,377 8.34
Such data if cross-checked with the places of worship data of the Ministry of
Religious Affairs in 2013 which found 338,116 of mosques and 432,176 of musalla.
The difference of number figures as much as it could be demonstrated that the
numbers in the data of mosques indicates the mosque existence, while in the table
shown above indicates the data along with the land data. That is, most of the
mosques were founded not on waqf land specifically for mosques.
Likewise the number of boarding schools (pesantren), the data of the Ministry in
2012 showed that the number of the pesantrens registered in the Ministry of
Religious Affairs are as much as 27,230.8
The differences here indicate that the latest
mentioned number shows the existence of the pesantrens, whereas in the previous
table above indicates the data state of the pesantrens, along with the land data. That
is, most of the pesantrens mentioned later have been built not on the waqf land
designed for the pesantren.
That’s the sample picture of the problems associated to the waqf assets in Indonesia,
namely that the number of institutions is far more than asset data designated for the
institution establishment. In other words, it can be stated that many institutions
8
http://www.kemenag.go.id/index.php?a=berita&id=221030 (8 November 2015)

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supposed to be established on the ground with the status of waqf, but they are in
contrary.
MUHAMMADIYAH A BOARD OF WAQF ASSETS MANAGEMENT
Muhammadiyah was founded by KH Ahmad Dahlan in Yogyakarta on 8 Dhu al-
hijjah 1330 coincided 18 November 1912. The organization received recognition of
the Dutch East Indies Government on August 22, 1914 based on the Decision of the
Governor General No. 81 in 1914. In the second decade of the 20th century it had
spread through out Yogyakarta. Based on the deed of the Governor General of the
Dutch East Indies No. 40/1920, dated August 16, 1920, Muhammadiyah allowed to
operate in the entire territory of the Dutch East Indies (now Indonesia).9
This organization has been existing continuously and running the programs
according to its mission up to present. At first this organization engaged in the
propagation of Islam and religious counseling for people who many of them run
syncretic-Islamic teachings, which confuse the teachings derived from Islamic
sources with the traditional beliefs.
The activities of Islamic daawa was initially community-based, then developed
through prayer rooms (surau) and mosques, which then became one of the style of
the Muhammadiyah movement, known as the movement of tajdid in the sense of
renewal in the field of faith and sharia (tanzih and al-ruju‘ ila al -Quran wa al-
Sunnah) and updated into the field of social interactions and changes (muamalat).
Along with the activities Muhammadiyah in its early time was also engaged in
education by providing teaching for young children who did not get a chance for
education. The activity became the forerunner of the establishment of madrasas and
schools of Muhammadiyah. The madrasah was the school that organized religious
education as a major subject and general subjects as an extra. While sekolah
(schools) organized general subjects as the major with additional religious education.
In the field of education Muhammadiyah has combined the two education models at
once, which was a model of the Islamic education (pesantren) and the Dutch-
European education model. This was done because the two categories of education
are important for Muslims to catch up. Also it was not possible to abolish entirely
public school systems and pesantren systems. The integration effort made no longer
difference between religious knowledge and general science. Everything was judged
as a science that was ordered to be taken.10
The program of education has been realized by Muhammadiyah in the early decades
of the 20th century, and became a model for developed education in Indonesia up to
the present.
In addition, Muhammadiyah has also paid attention to the field of social services, to
alleviate the poor out of the misery, where at that time many people have suffered
because of misery and no welfare of life. Also it gave health care for people who
suffered illness, as well as to sympathize the people who live in hardship and need to
9
Musthafa Kamal Pasha, Muhammadiyah the Islamic Movement, p. 98.
10
Musthafa Kamal Pasha, Muhammadiyah, p. 118.

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get the health care Muhammadiyah collect donations from benefactors Muslim.
Since then, arose the idea to establish orphanages for orphans and abandoned, and
the establishment health clinics and hospitals for health services.
In the age of more than one century Muhammadiyah has proven movement and
devotion in order to educate and empower its members, the community, the nation,
and mankind. The efforts undertaken by Muhammadiyah not only for internal
purposes, namely members alone, but also for the people of Indonesia, even for the
world community.
In organizing the movement and activities, Muhammadiyah has managed a number
of assets with the status of waqf, not owned by individuals. All assets managed by
institutions Muhammadiyah legally are the property of this organization as a legal
entity, does not belong to the leaders nor managers. As a legal entity, the leaders
realize that all assets of Muhammadiyah are trust that must be maintained, for a
means of worship to God and to benefit as much as possible for the benefit and
welfare of the community. So, in order to maintain the trust that all assets managed
by Muhammadiyah must be registered in the name of Muhammadiyah as the owner.
The existence of Muhammadiyah as a legal entity that can own assets, especially
land on ownership status is in accordance with the decision of the Minister of the
Interior No. 14/DDA/1972 dated February 10, 1972 on “The appointment of
Muhammadiyah as a Legal Entity Which Can Possess Land With Property Rights”,
and its extension based on letter No. 14/DDA/1972/A/13 dated February 27, 1980.
Then based on the decree letter Muhammadiyah has been a legitimate institution that
can possess the land assets with the name of Muhammadiyah.
Based on the book of “1 Century of Muhammadiyah Profile” (2010), this
organization has a total land assets as much as 20,945,504 m² scattered throughout
the territory of Indonesia. In the span of the next 5 years this organization has assets
of more than mentioned above, but at the time of this paper writing there is no
obtained official figures regarding the asset.
The efforts of Muhammadiyah are composed of several institutions, among which
are educational institutions. In the book “Muhammadiyah Profile” is stated that in
2010 Muhammadiyah has educational institutions include: Elementary School (SD)
of 1176, Islamic Elementary School (MI) of 1428, Junior High School (SMP) of
1188, MTs (MTs) of 534, High School (SMA) as many as 515, Vocational Schools
(SMK) of 278, Madrasah Aliyah (MA) of 172, and Islamic Boarding School
(Pesantren) of 67. In addition to the educational institutions, Muhammadiyah also
manage as many as 167 of Higher Educations (universities, institutes, colleges,
polytechnics, and colleges). There are many more assets of Muhammadiyah used for
various social services and religious activities, such as mosques, musallas, hospitals
or health clinics, orphanages, and so on. Muhammadiyah's assets are spread across
Indonesia, from the province of Aceh in the westernmost part of Indonesia to Papua
in the easternmost part.
To take care of the widespread assets, in the organizational structure of
Muhammadiyah there is one assembly in charge of these assets, namely the Council
of Waqf and Property, one of the 21 assemblies of Muhammadiyah. The figures who
take charge in this council some of them are those who have retired from the national

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land bureau, while others are notary (land deed authority maker), lawyer, and people
who are experienced in the field of asset management and security.
COUNCIL OF WAQF AND PROPERTY OF MUHAMMADIYAH
This council is an assembly established to assist the Executive Board of
Muhammadiyah in running one of the main programs. In this case, is to assist in
carrying out the development program and maintenance of waqf assets and property
owned by Muhammadiyah.
This Council has a vision of development, which is developing the asset management
function of Muhammadiyah in the form of waqf and property of the organization in a
professional, transparent, accountable, and productive manner to give the greater
benefit of the people.
Furthermore, to realize the vision, the council makes development programs, namely:
1. Movement System - This program is intended to implement the system of
administration and asset management of Muhammadiyah in form of waqf
(both movable assets and immovable assets) and other property in a
transparent, accountable, and productive manner.
2. Organization and Leadership - This program is intended to develop and
improve skills and organizational culture and asset management of
Muhammadiyah through the establishment of information system, asset
management system, and integrated data bank of assets in order to support the
programs of Muhammadiyah and community needs.
3. Network - the program is intended to improve institutional coordination and
cooperation in the entire levels of leadership (provincial, distric, branch, sub-
branch boards), Muhammadiyah’s efforts, and the Government, to inventor,
manage, utilize, and conserve the assets of Muhammadiyah to meet the needs
of the organization and community.
4. Resource - This program is intended to grow and improve the quality,
commitment, and professionalism of asset managers of Muhammadiyah
through training in order to improve the administration and governance of
Muhammadiyah assets.
5. Action Service - This program is intended to improve productivity and asset
utilization, and to make massively certificate process of waqf and assets of
Muhammadiyah in all levels of the organaization for the dawah movement,
human resources improvement, and public welfare.
Those are the programs outlined by Muhammadiyah as planned activities in the
period 2015-2020 and discussed in the meetings during the Muhammadiyah congress
held in early August 2015 ago.11
Based on the evaluation of the programs implementation in the field of waqf asset
management of Muhammadiyah in the previous period as reflected in the Council
report, there were several problems that need attention to be addressed in the next
period. Among the problems faced by this council are as follows:
1. In the field of human resources, namely the need to improve the human
resources quality and to grow the spirit of dedication in developing and
11
Central Board of Muhammadiyah, The Programs of Muhammadiyah 2015-2020, p. 50-51.

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maintaining assets and property of Muhammadiyah to reach the mission of
Muhammadiyah.
2. In the field of financial resources, the availability of sufficient funds needed
for the operational management of the assets of Muhammadiyah.
3. In the field of asset security, which needs planning and systemic action to
safeguard and secure the assets, because many cases related to assets of
Muhammadiyah in the legal aspects have not received confirmation, as the
status of ownership of assets have not been completed.
The council realized that the management of waqf assets in Muhammadiyah is not
simple. Some of the problems in the management of waqf assets, among other things:
the location is widespread, its designation assortment, some of the managers are also
with backgrounds in diverse abilities and skills. Moreover, there are a variety of asset
issues that require attention and handling well.
In the report the Council of Waqf which delivered in the Muhammadiyah Congress
in 2015, several programs of the Council were implemented in the form of
movement system is as follows: (1) improving the quality of waqf assets, (2) security
of land assets and waqf (3) the development of quality of waqf management, ( 4)
socialization of cash waqf in Muhammadiyah, (5) establishment of nazir for cash
waqf in Muhammadiyah, (6) optimating the cash waqf development and the
productive waqf as a bulwark problems of poverty, backwardness, and ignorance of
the people, (7) determination of priority solutions to the problems of waqf in
Muhammadiyah, (8) increasing the quality and quantity of development management
of waqf and certification of waqf land, (9) intensivicating land certificates of waqf
assets and property Muhammadiyah, (10) advocacy and arbitration, (11) securing the
land of assets and waqf of Muhammadiyah, (12) developing waqf and property
database of Muhammadiyah, (13) improving the quality and security of the land of
Muhammadiyah.12
Beside the movement and development mentioned, the council of waqf also
implement empowerment programs, including: (1) Consolidating empowerment and
waqf asset utilization in Muhammadiyah. The program was carried out in various
forms of activities in order for consolidation. (2) Ensuring people’s qualified socio-
economic life as a fortress from the people’s problems of poverty, backwardness, and
ignorance through the programs developed by Muhammadiyah. The program was
implemented by empowering potential waqf land for the benefit of the people,
including by raising funds for the construction of hospitals and schools in the Papua
region. (3) Issuance of waqf journals, leaflets, brochures, posters, and manuals of
certification procedures of waqf. (4) Collaboration with internal and external parties
of Muhammadiyah. The cooperations were set among units within Muhammadiyah,
and also with banking institutions, and government agencies, as well as foreign
institutions. (5) Training of asset management. The program was implemented in
collaboration with 15 universities Muhammadiyah, inviting the waqf council
respectives of the areas so that the waqf asset managers being skilled in
Muhammadiyah waqf assets inventory and certification.13
12
Central Board of Muhammadiyah, The Report of the Councils of the Central Board of
Muhammadiyah 2010-2015, p. 370-406.
13
Ibid.

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MUHAMMADIYAH OF JEMBER
The asset management of Muhammadiyah is in accordance with its hierarchy of
leadership, performed with tiered management, ranging from the lowest sphere that
is branch and sub-branch board, district board, regional board, up to the highest, the
Central Board of Muhammadiyah.
Among the assets of Muhammadiyah, the following is how asset management waqf
implemented by Muhammadiyah, and specifically managed by Board of
Muhammadiyah in the district of Jember.
Jember is one of 33 administrative areas in the province of East Java. The vast
territory of this district is 3,092 km2
with a population of 2,451,081 inhabitants.
Consists of 31 subdistricts which includes 245 villages and 22 urban villages.
Located in the eastern part of East Java, and is the third largest city in the province,
with several advantages, of the number of educational institutions in this area,
ranging from early childhood to higher education, as well as the number of Islamic
religious education as madrasas and pesantrens. Therefore Jember is also known as a
city of students.
Muhammadiyah first came into the area of Jember, according to the record of
Muhammadiyah Provincial Board of East Java expected in 1925, namely in the
village of Cakru. The planting of Muhammadiyah in this area was done by migrant
communities from Solo of Central Java. They gained the Muhammadiyah
understanding from their education at Solo. In Cakru they initially formed a
community and Islamic teaching groups. There was no document officially recorded
the Muhammadiyah development at the time, but it was certain that Muhammadiyah
has existed in Jember since 1927 standing as a branch with 5 sub-branch these were
Kalisat, Sukowono, Kencong, Arjasa, and Bangsalsari.
Nowadays Muhammadiyah is growing in around 60% of Jember district.
Muhammadiyah’s branch number is 23, and the position of the organaization area is
equivalent to the sub-district of Government.
Programs and activities undertaken by Muhammadiyah of Jember embodied in
several institutions that also became the assets of Muhammadiyah, which consists of:
Kindergarten or early childhood education as many as 23 schools, Primary School
numbered 9, Religious Elementary School as 15, Junior High Schools as many as 11,
High Schools as 3, Vocational High Schools as many as 5, Madrasah Aliyah as 1,
and higher education 1. There are 5 orphanage, and 2 dormitories. In addition there
are 2 pesantrens, 30 mosques and 20 mushallas. The number of mosques and
musallas actually could be more than the mentioned. The other for office buildings
are 4, and the other functioned as a wetland and agriculture as much as 22 plots. The
institutions, buildings, and the land are part of the land assets owned by
Muhammadiyah of Jember. The total land assets owned by Muhammadiyah of
Jember are 351,245 m2
of which has been certified on the owner name of
Muhammadiyah.

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EXPERIENCE OF WAQF ASSETS MANAGEMENT IN JEMBER
In accordance to the organization level of the Central Board of Muhammadiyah, the
waqf council in district of Jember also has the task of conserving, securing, and
maintaining the waqf assets and the property of Muhammadiyah in this area.
The real problems faced by the waqf council are described as follows:
1. Low awareness of the members and managers to immediately submit the
assets data to the council. There are allegations that they fear from
intervention by the council.
2. Some have taken care of themselves but not immediately reported to the
council.
3. There are cases (such as in Ambulu), the land has been endowed to
Muhammadiyah, but later being exchanged with the State Hingh School land.
In such a case becomes complex affairs, because there must be permission
from the Indonesian Waqf Board and the release statement of Central Board
of Muhammadiyah.
The council of waqf got support from other parties for the smooth running of the
mission and programs. The support came from University of Muhammadiyah Jember
(UMJ), where UMJ could help to pay for all expenses required in the transition
process of rights. Additionally there is a notary who through his office helped and
advocated during the process of waqf documents to the asset certification process in
the Land Office of Jember district.
The next step to be taken by the council is to perform validation and synchronization
between the document and the fact of physical assets into the waqf asset that really
clear. The measure of the possession validity of land assets in Indonesia is the
certificate of land rights.14
PROGRAMS OF WAQF AND PROPERTY COUNCIL IN JEMBER
As the problems faced by the council of waqf and property of the central board, there
is also such a problem at the level of the district board of Jember needs to be taken
seriously regarding to the asset.
Among the assets owned by Muhammadiyah in district of Jember, are diverse
backgrounds of acquisition. Mostly obtained through the buying process which done
through collecting public funds, both Muhammadiyah members and its sympathizers.
The other is through grants or endowments of a person's pledge to Muhammadiyah.
In any way the assets were acquired, then its status in Muhammadiyah is as
belonging to the organization as a waqf. But not all of owned assets have reached the
proof of property ownership marked with a ownership certificate.
Muhammadiyah in the district of Jember has quite a lot of assets – for such a civil
organization – either land or buildings. These assets are generally used for places of
14
Statement of Secretary the Council of Waqf and Property of Muhammadiyah Jember, November
14th
, 2015.

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worship and educational institutions. There are only a few of which are used for the
orphanage, offices, dormitories, hermitage, health clinics, and open land managed for
agriculture. Total recorded in the office of Muhammadiyah Jember is an area of
351,245 m2
. Most likely there are assets that have not been listed, because the
ownership status has not fully belongs to Muhammadiyah. Some are already clear as
belonging of Muhammadiyah, but others despite being used for the activities and
programs of Muhammadiyah but its legal status as owned by individuals, or are still
in the process of conversion of ownership. The position of such status could be due
to the newly acquired assets, either of the buying, grants, endowments pledge, or
exchange.
Because of the assets acquired or handed over to be managed by Muhammadiyah
then the responsible party for the care of the next is the representatives of the
organization, which in this case is delegated to the council.
To take care of the assets management, the council of waqf and property in the
district of Jember launched a program of work for the years 2010-2015, as follows:
1. Inventorying and arbitrating the property of Muhammadiyah derived from
wafq and intensifying the implementation, management, and sertification of
waqf lands of Muhammadiyah. The program was conducted to manage the
assets that had been clear beneficiaries, especially for activity of worship
(mosques, musallas) and educational institutions.
2. Certificating the lands of Muhammadiyah to be under name of
Muhammadiyah. The program was conducted in structuring and securing
assets, which owned by Muhammadiyah but legally can not be proven by an
authentic document in a form of ownership certificate.
3. Making a socialization on the cash and productive waqf that can be
implemented effectively. The program was carried out in order to motivate
people to be willing to donate or share for a public interest, and to build
public awareness about the importance of waqf.
4. Utilizing the vacant waqf lands for productive purposes and other activities
according to the main function. The program was carried out to obtain
optimum benefit from the existence of waqf assets, to avoid "tabzir", ie let the
abandoned properties and neglected. Neglected asset is prone to loss of
ownership rights as claimed by others, would be prone to civil disputes for
people who do not understand or not aware of ownership rights transfer and
background.
5. Setting a special team to handle specific cases, in order to make a better focus
treatment and the completion reached immediately.15
There often happens in the society the submission statement of land assets
endowment to be built for school buildings or places of worship, so the managers
accepted it well and then manage it as infrastructure for public use, then it become
beneficial building for the community. Due to the utilization of these assets is clear
and known by the public, the managers do not care anymore with the formal status of
these assets, as it has traditionally been a waqf.
15
The District Board of Muhammadiyah Jember, “The 1st
District Organizers Meeting of 2012”.
March 11, 2012. p. 20.

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The submission process of waqf has been done informally to the managers or to the
organization board directly, without going through a formal process in the office of
who has an authority to make an authentic document of endowment. Such
transactions are prevalent in the community, and does not cause any problems
immediately. However, due to the “underhand” transaction of this kind of civil
disputes often cause problem after one who did endowments passed away.
According to the enactment of Law No. 41 Year 2004 on the Waqf, the managers of
waqf asset also had to work in earnest with a good planning. Because every waqf it
should be clear designation. For example, when in a transaction or waqf pledge the
waqif wants his waqf assets earmarked for the provision of education, then the asset
is no longer used for education, the nazir can not necessarily divert or change its
designation. It is expressly stated in Article 44 of the Law on Waqf. When someone
wants to transfer it he should get a permission from Indonesian Waqf Board.16
That is why the management of waqf assets in Muhammadiyah not entirely follows
the format of waqf as referred to the Law 41/2004. Assets acquired through the
purchase of which is coordinated by a committee with donations collected from the
donors, the asset is not registered as a waqf pledge, but through deeds of purchase in
order to obtain certificate of ownership rights. Meanwhile, if the acquired land asset
of someone’s grant it should be – if the donor agrees –registered and listed in the
notary's office with a grant deed, thereby also obtains a certificate of ownership
rights.
At this time there are unresolved issues of waqf assets in Jember. The first, which is
somewhat neglected waqf assets in the city of Tanggul, then wastelands is used by a
military unit for its office. Once Muhammadiyah needs it but the military takes it off
because the board of Muhammadiyah can not show documents of ownership of the
land. Another case occures in Muhammadiyah branch of Ambulu. There is a
Vocational High School of Muhammadiyah, occupies and uses the land of
Muhammadiyah as the center of learning activity. Next to the school is a State Hugh
School. The two schools need each other the lands owned by other parties. So both
parties desire for exchange vacant land on the border between the two. Both parties
have agreed on the boundaries of the land to be exchanged, but the problem is that
the land of Muhammadiyah was already certified on the name of Muhammadiyah
then must apply for permission in advance to the Cetral Board of Muhammadiyah,
which later will be reviewed taking into the reasons, while the party of the State High
School because of its status as a local government-owned, it must be approved by the
Local Representatives Council.
Those are the examples how to control the assets in Muhammadiyah, to acquire the
assets through purchase, donation or endowment to Muhammadiyah can be
represented by the element of any level of board, including the lowest level. But to
remove the asset must obtain a written permission from the Central Board of
Muhammadiyah. In this way, Muhammadiyah assets become easy to grow and
almost impossible to loose.
To resolve the question of the assets, the most effective and efficient step is to
16
Ministry of Law and Human Rights, Law Number 41 Year 2004 on Waqf, hal. 11.

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575
involve the local waqf board manager. As performed by the council of waqf of
Muhammadiyah some times ago, through the program of waqf consulting services.
The service program called “the Waqf Clinic”. This program is a follow up of the
recommendations during the waqf workshop organized by the Council of Waqf and
Property of the Central Board of Muhammadiyah in cooperation with the University
of Muhammadiyah Jember in July 2012.
The steps of the council of Waqf and Property of the District Board of
Muhammadiyah Jember in opening the clinic was intended to address issues of land
and assets of Muhammadiyah at Jember. The activity was felt appropriate and much
needed by the local board and sub-branch of Muhammadiyah related to the existence
of Muhammadiyah assets, especially which is still problematic in legality. Therefore,
the presence of the Waqf Clinic can be described as a bridge towards the settlement
of the issues of land legality in the grass roots of Muhammadiyah, ie among the local
board and sub-branch.
Since the Waqf Clinic service has been opened, there are several boards of
Muhammadiyah in turns to consult the council seeking a solution for settlement of
land issues. There are some assets in the local boards and institutions of
Muhammadiyah on the individual of the ownership status of the land and not on the
name of Muhammadiyah, so it needs to be upgraded to become the property of
Muhammadiyah. Among the consulted problems are the dispute land with other
parties.
During the consultation, the council advises that before the improving process of the
assets ownership status, it is necessary first to make data collection and validation.
This is necessary to be done so that in the next process there is no problems. Once
the data is completely ready and valid from a legal perspective, the status of
ownership developed become the assets of Muhammadiyah.
The chair of the council of waqf and property of the Provincial Board of
Muhammadiyah East Java, Mr. Budi Pahlawan supports the program of the Waqf
Clinic services. According to Budi, he has set up a team which sometimes plunge to
help, assist, and guide the management of the land documents of Muhammadiyah to
the Land Office of the District. They are professionals in their fields, able to help
making the process easier. Therefore, Budi appealed to the board manager and
institution leaders to pay attention to this issue in order to save the assets and land
owned by Muhammadiyah.
Indeed at the national level, there has been a memorandum of understanding of
cooperation between Muhammadiyah and the National Land Board. The documents
of cooperation agreement were signed on April 11th
, 2012 by Prof. Dr. M. Din
Shamsuddin, as General Chairman the Central Board of Muhammadiyah and Dr.
Joyo Winoto, as head of the National Land Agency. The scope of cooperation,
among others, is to accelerate the process of ownership rights and the issuance of
certificates of land owned by Muhammadiyah.
EPILOGUE
Exposure of this paper provides an overview of how not simply the management of

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576
waqf assets in Indonesia. The same thing happened at the Muhammadiyah, and more
specifically what occured by Muhammadiyah in the district of Jember.
If we look at the reality, it is important for the managers of the waqf council of
Muhammadiyah to optimize all its potential to address and resolve problems related
to the management of waqf assets.
The issues of waqf asset management are not only experienced by Muhammadiyah
as non- governmental organizations, but also experienced by the Directorate of Waqf
Empowerment in the Ministry of Religious Affairs. That means, this issue is still in a
long road for completion. Therefore there must be systemic measures with a strong
determination to organize the administration and legal certainty on assets, further to
ensure that waqf assets are more beneficial for the Islamic da'wah and community
empowerment.
REFERENCES
Al-Bukhari, in al-Maktabah al-Shamilah, Version 3.36.
Ministry of Law and Human Rights. (2006). Govermental Regulation Number 41
Year 2006, on The Implementation of Law Number 41/2004 on Waqf, 2006.
http://siwak.kemenacg.go.id/p_guna.php
http://www.awqaf.gov.ae/Waqf.aspx?SectionID=2&RefID=9
http://www.kemenag.go.id/index.php?a=berita&id=221030
Ministry of Law and Human Rights. (2004). Law Number 41 Year 2004 on Waqf,
2004.
Muhammad Pickthall. (t.t). The Meaning of the Glorious Quran, Karachi: Idaratul
Quran.
Musthafa Kamal Pasha. (2009). Muhammadiyah the Islamic Movement. Yogyakarta:
Pustaka SM.
Sulaiman Rashid, Al-Fiqh al-Islami, Bandung: Sinar Baru, 2008.
The Central Board of Muhammadiyah, Programs of Muhammadiyah 2015-2020,
Makassar: The 47th
National Congress of Muhammadiyah, August 2015.
The Central Board of Muhammadiyah, Reports of the Councils of the Central Board
of Muhammadiyah 2010-2015, Makassar: The 47th
National Congress of
Muhammadiyah, August 2015.
The District Board of Muhammadiyah Jember, Paper: “The 1st
District Organizers
Meeting of 2012”. March 11, 2012.

Managing waqf assets in Muhammadiyah

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