OPTIMIZING AND STRENGTHENING PRODUCTIVE WAQF STRATEGIES AS A SUSTAINABLE INSTRUMENT FOR POVERTY ALLEVIATION IN ACHIEVING SDG 1

Abstrak

Poverty alleviation is a global priority under the Sustainable Development Goals (SDGs), particularly SDG 1: No Poverty. In Indonesia—home to the world’s largest Muslim population—waqf holds significant potential as an Islamic social finance instrument. However, traditional waqf practices are often managed in non-productive ways, limiting their long-term impact on economic empowerment and poverty reduction. This study aims to analyze how the optimization and strengthening of productive waqf management strategies can function as a sustainable instrument for poverty alleviation and contribute meaningfully to the achievement of SDG 1. Metodologi A descriptive qualitative approach is employed through the analysis of national regulations, literature reviews, and an examination of various productive waqf implementation models in Indonesia and other countries. A comparative approach is used to identify best practices and relevant institutional strategies. The study finds that productive waqf can enhance community income, create job opportunities, and generate sustainable social financing. Optimization can be achieved through nadzir (waqf manager) professionalization, governance based on good governance principles, digitalization of waqf systems, and integration with the Islamic finance ecosystem. Multi-stakeholder collaboration and harmonized policy frameworks are shown to be critical for successful implementation.; This study is limited to a qualitative approach and does not include quantitative empirical analysis of the real economic impact of productive waqf projects. Limited data availability from certain waqf institutions also restricts the depth of comparative analysis, This research offers an integrative framework for productive waqf management that connects institutional aspects, governance, technological innovation, and policy harmonization as a sustainable development instrument for poverty alleviation. Unlike previous studies, which were partial, this research positions productive waqf as a strategic part of the Islamic social finance architecture that systematically supports the achievement of SDG 1. This research offers an integrative approach by combining institutional optimization, technological innovation, and policy strengthening into a strategic model for utilizing productive waqf to support the systemic and sustainable achievement of SDG 1.