Designing Waqf-Based Fisheries Financing: A Hybrid Model Approach

Abstract

Indonesia, as the world’s largest archipelagic nation, holds vast potential in the fisheries sector. However, poverty remains widespread in coastal areas, with 17.74 million people living below the poverty line, including 3.9 million categorized as extremely poor representing nearly 68 percent of the nation’s total poor population. This condition stems from limited access to financing and dependence on exploitative informal lenders. To address these challenges, this study employed a literature review approach by examining works on waqf, fisheries, and Islamic social finance to formulate a conceptual hybrid waqf model aimed at empowering coastal communities. The proposed framework introduces three financing schemes: (1) Integration of waqf with other Islamic social funds (zakat, infaq, and sadaqah) to provide productive assets and operational support; (2) combination of cash waqf with cash waqf linked deposit (CWLD) to ensure sustainable working capital for fishermen; and (3) integration of cash and land waqf to support aquaculture development through access to capital and land. This hybrid model underscores the strategic role of waqf in fishermen’s empowerment, poverty alleviation, and promoting sustainability within the blue economy framework.