ABSTRACT
This study analyses the possibility of the establishment of a waqf bank. Banks taking on the role of a nazhir in the legal system would not be possible as the waqf banks are merely a nazhir partner (namely: custodian) in the management of waqf. This study, with the use of normative methodology, asks what would be the rationale of potential opponents and supporters of the establishment of waqf banks in the Indonesian law system. This study found that Islamic banks cannot act as nazhir, because they have different purposes. Banks are ultimately commercial institutions, and nazhir is a non-profit social institution. This is stipulated in Government Regulation No. 42/2006 paragraph (3) letter ‘c’ and Government Regulation No. 42/2006, which also defines the role of Islamic banks merely as custodian. Waqf banks as banks that manage cash waqf can be established through a number of alternative ways, namely: the establishment of a new bank, acquisition, conversion or waqf window in Islamic banking. In the establishment of a waqf bank, cash waqf nazhir can act as a shareholder of the waqf bank, and as a continuation of the waqif (the donor) mandate provision. Therefore, the amendment to the Waqf Act and its implementing regulations and special laws for the establishment of a waqf bank are required.
