Land Waqf as a Permanent Solution for Agrarian Reform

 

 

Utilizing waqf (Islamic religious endowment) as a mechanism for agrarian reform has recently become a subject of growing discussion. Nahdlatul Ulama (NU) in Indonesia issued recommendations regarding agrarian reform during its 2017 National Conference in West Nusa Tenggara. This stance serves as a starting point for linking waqf with national agrarian reform policy. In the book Wakaf Agraria: Signifikansi wakaf bagi agenda reforma agraria (Agrarian Waqf: The significance of waqf for the agrarian reform agenda; Shohibuddin, 2019), it is noted that waqf (Islamic endowment) in the agricultural and environmental sectors encompasses key aspects of agrarian reform implementation, such as the regulation of land tenure, usage, and utilization. According to the author, waqf represents a highly promising scheme for addressing various structural issues in the agrarian sector, such as farmers' limited access to agricultural land, land tenure inequality, and the threats posed by the shift away from food crops and the conversion of agricultural land. On one hand, the waqf scheme can provide access to agricultural land while simultaneously protecting it from the threats of fragmentation, alienation, encroachment, and land-use conversion. On the other hand, various components of agrarian reform can effectively be integrated with the operational aspects of waqf itself.

The "agrarian waqf" innovation is developed in this book by drawing upon the normative and historical concepts of waqf. In fact, this idea is already being implemented in several regions—examples include food crop land waqf in Tuban and Jombang (East Java), orchard waqf in Pandeglang (Banten), and forest waqf in Aceh Besar (Aceh). The author outlines seven operational models for agrarian waqf: the anti-fragmentation model, the consolidation model, the major donor model, the crowdfunding model, the model integrating with community-led land reform initiatives, the village waqf land model, and the model integrating with government land reform programs.

The agrarian waqf scheme is inclusive in nature. It serves purposes beyond ritual worship, extending into the realm of social philanthropy. Furthermore, agrarian waqf is applicable to the general public—involving both donors and beneficiaries—and is not limited solely to the Muslim community.

The potential for waqf land in Indonesia is immense. As of June 2017, the total area of ​​waqf land in Indonesia stood at 4.36 million hectares. This figure represents half of the country's total rice paddy area. ...irrigation in Indonesia, which covers only 7.7 million hectares. According to the Indonesian Waqf Board (BWI), this land is distributed across 435,768 locations. Of the total, 287,608 locations are certified, while 148,160 remain uncertified (Report by the Director of Waqf Empowerment, January 4, 2017).

The waqf (religious endowment) scheme offers hope for overcoming the failures that have plagued agrarian reform efforts to date. These failures include agrarian differentiation, land fragmentation, the displacement of farmers, and the conversion of agricultural land for other uses. Waqf can serve as a religious breakthrough for implementing comprehensive and sustainable agrarian reform.

Endowing assets for the public good is a truly noble act. There are many types of assets one can endow, one of which is immovable property, such as land. The definition and regulations regarding waqf are established by the state, notably in Law Number 41 of 2004 concerning waqf and Government Regulation Number 42 of 2006 regarding its implementation. Here, waqf is defined as "...a legal act by the waqif (endower) to separate and/or surrender a portion of their assets to be utilized in perpetuity or for a specific period—in accordance with the intended purpose—for acts of worship and/or public welfare, in compliance with Sharia."

Regarding the assets to be endowed, regulations stipulate that the property must be non-depletable—such as real estate (land, houses, etc.). In the case of land, it has traditionally been used to build places of worship or for other public interest purposes.

At its core, waqf entails relinquishing ownership, meaning the asset cannot be converted to a different use or transferred to anyone else. The key concept here is that it "cannot be transferred." Consequently, land that was originally part of the commercial sector—treated as a commodity—is transformed into... ...non-commodity and removed from the commercial market system. This means that the land's status shifts from private to common property. Consequently, endowed land is automatically shielded from fragmentation caused by inheritance mechanisms.

Waqf can support agrarian reform agendas, such as in the process of land consolidation. It can be applied to village land, where a village allocates its land through specific waqf-based mechanisms. Furthermore, the vast expanse of state land—comprising over two-thirds of Indonesia's total land area—could actually utilize this waqf mechanism. The state—which is not legally a "super-landlord" owner of the land—could distribute land to the community through waqf mechanisms, for instance, via the Indonesian Waqf Board (Badan Wakaf Indonesia).

In essence, the spirit and mechanism of waqf (religious endowment) seek to counter the notion of land commodification. Through waqf, land is neither subject to changes in ownership or transfer, nor is it bought, sold, or fragmented—as often happens in the commercial land market. Instead, land waqf serves the public interest. Furthermore, it fosters a sense of social solidarity, which forms the foundation of an Islamic economy aimed at shared prosperity. Ultimately, waqf can serve as a solution benefiting all citizens, including non-Muslims.

Wallahu ‘alam. And God knows best.