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ABSTRACT
Waqf in Indonesia has become an important part of promoting economic stability in the community. From an Islamic perspective system, waqf aims at promoting equitable and distribution of wealth. Thus, this study aims to see the effectiveness of the acceptance of productive waqf in community empowerment by case studies at the Islamic Hospital Foundation Malang, which is the biggest foundation which is established by cash waqf in Malang City. Using the quantitative description method and the Logit test with a total sample of 100 respondents represented, the findings showed that waqf has a positive and significant impact on the level of income and consumption levels of the mauquf alaih (person who became a waqf recipient). The impact of waqf on asset ownership and education is insignificant. The influence of receiving productive waqf is more widely used by mauquf alaih for the level of consumption of daily basic needs, not for increasing assets nor increasing the level of education. Moreover, due to the existence of Indonesian's government program for free schools up to nine (9) years, waqf did not effectively impact on mauquf alaih1 s family levels of education.
Keywords: Effectiveness, Productive Waqf, Social Welfare Development, Community Empowerment
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1.INTRODUCTION
Nowadays in mainstream economics generally, the policymakers in some countries focus on enhancing the level of economic growth, reducing unemployment rates, rising people's living standards, and managing price level. These macroeconomic variables can be stimulated with various combinations of conventional policies such as fiscal, monetary, and macro-prudential policy (Chapra, 2008). In Indonesia context, the macroeconomic phenomenon has invited attention by many groups especially among the experts and actors of Islamic economists who began to pay attention to help achieve the objectives of the policymaker in stabilizing the economy.
The existing Islamic economic paradigm, economic stability in particular in terms of improving the quality of life as measured by income can be supported by a model of community empowerment through waqf. By definition, waqf is an asset that is allocated for public benefit where the principal is giving it to organize by nazir (waqf management), while the results could be enjoyed for public purposes (Mandaville, 2009). There are two basic paradigms contained in the waqf, first, the ideological paradigm, which is...