‘Waqf ‘means ‘detention’ and connotes the tying up of property in perpetuity for the public’s benefit. According to jurists, 'Waqf' is the detention of a thing in the implied ownership of Almighty God, in such a way that its profits may be applied for the benefit of human beings. The beneficiaries of the Waqf may be for general public or a group of people. Waqf properties may be happen in two forms such as immovable property or movable such as lands or houses. In Indonesia, in previous times ago, cash Waqf are familiar and most of people were involved into this Waqf concept, but, nowadays, it is become a issue among of people group that considered that Waqf should in form of ‘fixed asset’ not in cash. This statement was agreed by Hanafiyyah, he said cash Waqf invalid because it one’s of endowment of movable properties (Waqf al-manqul) and it also can easier to change-over on total physical insufficient. Some of scholar argued that cash Waqf has no eternal attribute which should be available in Waqf property. From economic perspectives, the value of cash was tied with inflation rate and depreciation which may affect the bargaining power of selling and buying cash Waqf (al-Misri, 2005). From these arguments regarding to this issue, most of Islamic country was discouraged to adapt this Waqf in terms of ‘cash’.
According to Islamic Jurists, Waqf can be classified in three main categories, which are based on timing, purpose and object. Based on timing of Waqf, most of them agreed that it must be permanent but, according to Malikiyyah, it also could be temporary (Al-Zuhayli, 2000). In term of the purpose of the Waqf, the Waqf could be made to the family of Al-Waqif (donour) or to the public for the charitable purposes whether it could be in form generalization or specific purpose such as education. However, from the managerial perspective, the general Waqf is much better than the specific Waqf because it gives more flexibility to the manager to develop the Waqf property in order to optimize the benefits of the Waqf. In term of the object of Waqf, generally it could be movable or immovable. There are several sources for the financing and development of Waqf property could be obtained from (Al-Misri, 2005):
i. The property of Al-Waqif (donour)
ii. The property of Al-Mawquf Calayh (beneficiaries)
iii. The revenue of the Waqf property
iv. The revenue of other Waqf property
v. Baitulmal for Maslahah (public interest)
vi. Reserves from the revenue of the Waqf property
vii. The sale of a portion of Waqf property to develop the remaining portion of Waqf property
viii. The lease of the Waqf property with advanced rentals
x. Loan or debts (without interest)
In the Takaful policy, Waqf usually used for the settlement of the beneficiaries named or intended by the donor/settler in his or her waqf’s in explicit period, or they may be rented to the public, and the benefits accruing from the letting of the property could then be...