Factors Influencing the Success of Retail Cash Waqf Linked Ṣukūk (CWLS) Issuance: A Lesson from Indonesia

Abstract

In October 2020, the Indonesian government launched a Waqf-linked Islamic certificate called Cash Waqf Linked Ṣukūk (CWLS) that targeted retail investors. The CWLS SWR001 series for individuals is presented as a commitment by the government to support the national waqf movement and foster the development of social investment and productive waqf in Indonesia. The objectives of this study are to examine the key determinants of the willingness of upper middle-class Muslims in Indonesia to contribute to CWLS and explain the barriers in the collection of CWLS. The primary data were analyzed using a Partial Least Squares Structural Equation Modelling (PLS-SEM). The result shows that the variables of Financial Excess, Trust in Waqf Institutions and Government significantly affect the willingness of upper middle-class Muslims in Indonesia to contribute to retail CWLS.