Developing Muhammadiyah Waqf Lands through Islamic Investment Model: Special Case in Indonesia

ABSTRACT

In some Muslim countries, including Indonesia, Waqf institutions face obstacles in providing funds to manage their waqf lands. This paper aims to propose an alternative developing model for Muhammadiyah waqf institutions to meet the financing and management constraints using waqf land categorization concepts using Islamic investment models. In this conceptual paper, the theory proposes a model for developing waqf Muhammadiyah in Indonesia. This study identified inefficiencies in managing Muhammadiyah waqf in Indonesia due to financial problems and the lack of waqf institutions' ability to develop assets. The authors have developed an investment model as a waqf land financing source for Muhammadiyah waqf institutions in Indonesia. This model is expected to empower undeveloped and unproductive Muhammadiyah waqf lands and be applied by Muhammadiyah waqf institutions in Indonesia. In this study's development, Muhammadiyah waqf institutions, Islamic financial institutions, and policymakers will find alternatives in developing productive Waqf for the ummah. The findings of this study will provide Muhammadiyah waqf institution with an Investment model to develop their Waqf. Through this study, Waqf will help resolve poverty, unemployment, social inequality, improve education and health facilities, and improve the Indonesian economy. This model is different from the management of the existing Muhammadiyah waqf, which is carried out consumptively. Then, waqf land that has been categorized is transformed into productive assets such as agricultural products and commercial business projects. The proposed investment model is to help Muhammadiyah waqf institutions to develop waqf land. The investment model is used to make Muhammadiyah waqf land more productive and play a social welfare role. 118 Varia Justicia Vol. 16 No. 2 (2020) Muhammadiyah Bylaws on Financial Management and Wealth Paragraph (1), which states, "All of Muhammadiyah's finances and assets, including the finances and assets of the Assistant Management Leaders, Business Charities, and Autonomous Organizations at all levels the law belongs to the Central Executive." 6 This centralized ownership of the Muhammadiyah leadership has several objectives; first, providing a robust legal guarantee against the safety or permanence of Muhammadiyah's Waqf's endowments. Second, joint supervision through Muhammadiyah's policies on assets of the same standard. These are some of the characteristics of Muhammadiyah's organizational management regarding Waqf. That is why many people entrust the management of Waqf over the assets of the land and buildings they own to Muhammadiyah and are different from other religious organizations or foundations.
In 2019, MWK, through https://simam.wakafmu.org/, reported (see Table 1) that the number of waqf land as recorded by representatives of the Muhammadiyah region of Central Java was about 2441 plots of land with an area of 189.35 ha. 7 Although the number of waqf assets is quite extensive and has the potential for welfare, education, economy, and the social community, most waqf lands are unproductive and still used consumptively, such as mosques and orphanages, health facilities, and schools. These problems are due to the lack of financial resources and lack of waqf management expertise in developing waqf lands.  Vol. 16 No. 2 (2020) improper management. 8 The waqf management factor is the main limiting factor regarding why empty waqf land has not been maximally empowered because of the classic understanding of waqf managers who think that waqf land must be used following the waqf pledge deed and cannot be replaced as a productive asset. MWK has used several instruments to increase its financial resources. However, some tools are used on waqf land without adjusting to waqf land and its strategic location.
In solving problems in waqf institutions, waqf land has been categorized in Selangor, Malaysia, into the economic sector and strategic location. It is easier for waqf managers to develop their waqf assets by determining waqf land's location and economic potential. The investments in the form of agriculture, commercial, residential, and religious can help the use of Waqf in Selangor.
As a result of implementing the investment model, previous research has devoted considerable attention to learning about it. The IWM model provides advantages in group-based decision making and innovation and has proven successful in several countries such as Singapore, Malaysia, UAE, and Bangladesh. 9 These studies analyze the problems in the development of Waqf due to the lack of funding sources. The IWM is an alternative solution in increasing the role of Waqf for the ummah welfare. Besides, the potential of this model for the development of Muhammadiyah waqf land in Indonesia is outstanding; consumptive waqf land is then converted into productive assets in the form of agriculture using the Ijārah contract, Ijārah Muntahiya bit Tamlīk and Muzāra'ah. 10 Besides, it can also be productively developed in the form of buildings (commercial) using Mudhārabah, Musyārakah,Muqāradah,and Ijārah investment agreements. 11 The challenges faced by Muhammadiyah institutions become the primary basis for this study to formulate a sustainable development model to make Muhammadiyah waqf more productive and beneficial for the ummah. With different characteristics from other waqf institutions, MWK as a supervisor and the main responsible person for 8 Azizatul Islamiyah et al., "Muhammadiyah Waqf Land Empowerment Model in Magelang," in 1st Borobudur International Symposium on Humanities, Economics andSocial Sciences (BIS-HESS 2019), vol. 436, 2020, 725-28, https 120 Varia Justicia Vol. 16 No. 2 (2020) developing Muhammadiyah waqf in Indonesia must have a new mechanism for sustainable management is needed in developing Muhammadiyah waqf land in Indonesia. As a solution, this study proposes categorizing waqf lands using the investment waqf model (IWM). IWM is expected as the alternative model that can effectively overcome or minimize idle waqf lands faced by the Muhammadiyah institutions.
In this conceptual paper, the theory is developed about the relationship between waqf land categorization and the appropriate investment model in developing the land. This research's specific objective is to propose a suitable model of waqf development in overcoming the problem of unproductive waqf land and policies to increase the role of Muhammadiyah waqf land for ummah welfare. As far as the authors' knowledge, there has not been much study conducted that proposes an investment model to empower Muhammadiyah waqf land. Therefore, it is expected that the investment models developed in this study can be useful for Muhammadiyah waqf institutions in Indonesia.
This study complements previous research by offering new concepts and paradigms in the development of Muhammadiyah waqf, which has educational, social, and health development characteristics. However, this development has not yet led to productive sectors that can produce benefits distributed to those in need. Because of the increasing interest in speaking in Indonesia, this study claims three essential contributions. First, this research aims to provide input for MWK to categorize the empty waqf land they have and have not been maximally empowered. Second, the research findings are expected to help develop waqf literature by economic conditions in Indonesia. Third, this research provides insight into new models of Muhammadiyah waqf land development in Indonesia. .

An Overview of Waqf
As a religion with rules, concrete social arrangements, accommodative and applicable, Islam is very concerned about economic justice to create a just and prosperous society and minimize social inequality with an economic background between the poor and the rich. The Islamic law project to distribute economic justice so that wealth does not only revolve among rich people is through various programs, including the almsgiving program (Waqf). 12 As a voluntary sector of Islamic economics, Waqf functions as an economic development asset for society's welfare. The principle of waqf teachings encourages people who can help the underprivileged by giving endowment that is managed. The results are used to improve the needs, even fostering and elevating their degrees. Vol. 16 No. 2 (2020) The practice of Waqf has been known long before the advent of Islam, which was brought by the Prophet Muhammad (PBUH) even though with different names and terms. It is evident that many places of worship are located on land whose yard is managed, and the results are to finance the care and honorariums that care for the place of worship. 13 Because before the end of the Prophet Muhammad (PBUH), many mosques, such as the Grand Mosque and the Aqsa Mosque, had stood before Islam's presence and not the property of anyone but belongs to Allah SWT for the benefit of the people. In several countries in the world, the practice of Waqf was known before Islam, such as in Egypt, in Rome, and Germany. The practice of Waqf in Egypt was carried out by the Second King Ramsi, who gave a vast "Abidus" place of worship. 14 There are a lot of hadiths that encourage the practice of waqf. For example endowment by Umar in Khaibar as described in the following hadith: Meaning: When `Umar got a piece of land in Khaibar, he came to the Prophet saying, "I have got a piece of land, better than which I have never got. So what is your suggest about it?" The Prophet said, "If you wish, you can keep it as an endowment to be used for charitable purposes." So, `Umar gave the land in charity (i.e., as endowments on the condition that the land would neither be sold nor given as a present, nor bequeathed, (and its yield) would be used for the poor, the kinsmen, the emancipation of slaves, Jihad, and for guests and travelers; and its administrator could eat in a reasonable just manner, and he also could feed his friends without intending to be wealthy by its means." 15 The absence of waqif's ownership in an asset after being dedicated for Allah's ownership (SWT) may revert to or be applied for humanity's benefit. Waqf is different from a donation because waqf generates an endless profit to the needy and a reward to the donors. Waqf applies to non-perishable properties that can be used without damaging the property. Therefore, waqf widely relates to land and buildings. However, there is waqf of books, laptops, computers, chairs, tables, cars, or even cash. 16 122 Varia Justicia Vol. 16 No. 2 (2020) Many Muslims lack waqf endowment due to the wrong perception of waqf made only through fixed assets but never in cash. Most Muslims believe that fixed assets such as land and buildings can fulfill the three waqf conditions: perpetuity, irrevocability, and inalienability. However, land may be subjected to demolition, destruction due to natural calamities such as earthquakes, landslides, or floods, while waqf will only last if its value exists. 17 Through proper cash waqf management, it is possible to maintain and enhance waqf value. Those who do not have fixed assets such as land and building can participate in waqf endowment through cash waqf. Moreover, cash waqf is far more critical since it is more productive than fixed assets, as proven by existing research studies on the modern Islamic financial system's profitable practices. The amount of cash waqf donation is not an issue; to a certain extent, it is worthy of involving the whole ummah in donating waqf fund. Thus, every Muslim can contribute to cash waqf donation. 18 Waqf can be defined as an act of holding specific property such as moveable and immovable assets and preserving it for the confined benefit of specific philanthropy that prevents any use or disposition of the property outside the specific objective. Waqf applies to a non-perishable asset, the benefit of which can be extracted without consuming the property itself. Moreover, waqf can also be defined as promoting donations that are gifts of productive resources to be spent for public benefit. Apart from that, scholars define waqf as holding specific properties held or preserved for the confined benefit of any philanthropy using. 19 According to these definitions, once a person donates their asset as waqf, the property or the assets will belong to Allah (SWT), and the waqif cannot take back their property. The benefits of waqf can be used syar'ah so that waqf can last a long time and can be enjoyed by Muslims and the surrounding community. They can gain benefits from the waqf property without any period limitation. 20 On the other hand, cash waqf can be defined as a donation of a certain amount of fiat money or cash by a founder and the dedication of its usufruct in perpetuity for the prescribed purpose. Cash waqf can also be defined as an endowment of an amount of money managed by mutawallī to support a diversity of charitable work financially. The  Vol. 16 No. 2 (2020) collection of cash waqf will be converted to a permanent property that will then be used for the community's welfare and interest and managed by mutwallī. 21 Furthermore, to have a usufruct of cash, it must be invested, and the usufruct is the profits generated from the original fund. It is exposed to cash waqf to the investment in Islamic banking products such as Muḍārabah, Mushārakah, Tawarruq. Some scholars explained the use of cash waqf in financing the agricultural sector through Muḍārabah contract. This entire contract's profit will be used for charity such as building schools, masjid, orphanages, health care. 22 There are four parties involved with cash waqf. The first party is waqif or donors, who intend to get rewarded by Allah by contributing part of their income or earnings as assistance to the poor through waqf institution. The second part is the mutwallīs or management team from a waqf institution. Third-party is the cash waqf investees who receive cash waqf from mutwallīs to generate profit to help the poor. Moreover, the final party consists of the beneficiaries who will receive the profit earned from waqf investment. 23 Generally, waqf is categorized into two. One waqf is known as waqf khayriy, which is the type of waqf solely created for charities. Another is waqf zurriy, which is family waqf. Waqf khayriy is further classified into two, known as general waqf and specific waqf. General waqf is for charity without a pre-determined motive, condition, or beneficiaries. While specific waqf is for charity with a pre-determined motive, condition, and beneficiaries. 24 Waqf zurriy will benefit families. Some Muslim scholars consider this type of waqf as bid'ah and are not in line with sharīah rules. Within Waqf Zurriy, two forms of waqf for property exist. One is waqf for immovable assets such as land and building that can be endowed, and the other is for movable property such as cash and share. For movable property, Muslim scholars agreed that it is legitimate because it meets the waqf's main principles, which requires it to be permanent. 25

Developing problems of waqf lands
Many previous researchers in many countries have researched Waqf to evaluate the unproductive Waqf due to consumptive management constraints. According to the earlier study by Masyita on waqf challenges in Indonesia, they found that problems   Varia Justicia Vol. 16 No. 2 (2020) occurred due to lack of socialization of regulations and waqf fiqh, unproductive and undeveloped waqf land, and lack of financial resources. 26 They mentioned that waqf lands are the most popular forms of Waqf in Indonesia. Most of Indonesia's waqf assets have not been utilized productively and only used for mosques, cemeteries, orphanages, etc. 27 On the other hand, the existence of Waqf in Indonesia is essential for poverty alleviation programs such as health services, improving education, public facilities, and other socioeconomic development.
Budiman states that Muslim countries like Indonesia have not been able to optimize the role of Waqf because of internal and external constraints. 28 According to him, finance and land location are the main factors inhibiting waqf land development in Indonesia. That findings are also in line with Haneef's latest research, which found that lack of funding sources, lack of selling the power of waqf assets, lack of managerial skills, and abused waqf assets were the main reasons waqf land not useful for the ummah. 29 Syamsir poses another problem in managing waqf land, such as insufficient income to cover operational costs, and waqf assets have no self-generating and unproductive income. 30 Many previous studies have sought to find solutions to the problem of unproductive waqf land. The researchers have divided the empowerment model of waqf land into two methods; classic and modern. The istibdal (substitution) and ibdal (exchange) methods are the first two models of empowering consumptive waqf land; other classical methods such as hukr and Ijārah are also used to develop waqf assets. 31 Over  Vol. 16 No. 2 (2020) in the real sector and financial instruments such as cash waqf. Shirazi offers a model in poverty alleviation of the world through a combination of two Islamic financial tools (zakat and Waqf) that provide lasting funds for prosperity through a profit-sharing and loss-based model. 33 Therefore, the waqf institution needs to develop a lucrative project to finance the primary sector required by many people, such as education, health, etc.
Meanwhile, applying a Waqf-based social micro venture fund (WSMVF) would strengthen the ummah's economic status, both in the fields of social, religious fronts, and education. 34 The focus on developing microenterprises can have a positive impact on creating employment opportunities and improving household economics. According to him, through strengthening micro-enterprise funds, WSMVF could be a financing mode for Waqf recipients.
Also, Pitchy promoted a cooperative-waqf model to solve the financial constraints faced by waqf institutions. According to them, both of these models combine a donation and gift-based crowdfunding model. 35 This model is different from the cash waqf model, which is done offline and online by financial institutions. Then, collected cash waqf funds are managed into assets such as hospitals, construction of educational institutions, and others.

Existing models of investment waqf
According to Law Number 41 of 2004 concerning Waqf, investment in waqf land is allowed; to ensure waqf land sustainability. Before determining a model that is suitable for the development of empty waqf land. Then proceed with identifying supporting sectors such as housing, agriculture, commercial, and religious needs. Therefore, the financing source for developing waqf land has become a significant issue for many waqf institutions. 36  126 Varia Justicia Vol. 16 No. 2 (2020) are five investment models used in developing waqf land, namely, Ijārah Muntahiya bit Tamlīk,Murābahah,Istishnā',Mudhārabah,and Musyārakah. 37 Ijārah muntahiya bit tamlīk currently practiced in Muslim countries such as Singapore, Kuwait,Malaysia,and Bangladesh. 38 Through this investment model, waqf institutions would lease buildings that investors have built for a certain period. At the end of the lease, the capital owner will get the agreed profit, and ownership of the asset will be used to develop Waqf either through sales or other.
Meanwhile, Murābahah currently practiced in Malaysia, Bangladesh, Singapore, Kuwait, Sudan, and the United Kingdom. 39 According to Ali, this investment model requires the Waqf Manager as a seller by buying the equipment needed through a Murābahah contract, while the financing comes from one Islamic bank. 40 The waqf manager becomes a debtor for a price plus profit. This debt will eventually be paid using the income from the development of waqf assets. The Istishnā' model allows waqf managers to order the development of waqf assets needed by financial institutions through Istishnā' contracts. 41 The Islamic Bank then contracts with the contractor to fulfill the waqf manager's order on behalf of the bank. 42 The Istishnā' financing model also creates debt for the waqf property managers and can be settled from waqf assets development. The financing provider has no right to interfere in the management of waqf assets.
The current Mudhārabah and Musyārakah investment models are also practiced in several Muslim countries such as Indonesia, Singapore, Malaysia, and Bangladesh. 43 In Mudhārabah, waqf institutions ask capital owners to build buildings on waqf land, while the developer carries out project management. Upon project completion, a third party will rent the building. The rental income is divided between the waqf institution and the developer.  Vol. 16 No. 2 (2020) distribute them to mauqūf 'alaih. 44 This model is a solution for waqf institutions in financing waqf land because of high development costs.
Islamic Development Bank (IDB) has developed this model in the form of increased capital inflows from its waqf funds (Musyārakah Mutanāqisah). Examples of Musyārakah Mutanāqisah project IDB are constructing the At-Ta'awun Commercial Center Project in the United Arab Emirates (UEA) of US $ 18.34 million high-rise buildings for commercial on waqf land in Kuwait, namely Awqaf Commercial Building worth 12.35 million dollars with the profit-sharing system. 45 In addition to the investment model above, several previous studies also suggested using Muzāra'ah and Musāqat as investment models for developing waqf land. 46

The proposed investment waqf model (IWM)
This study aims to adopt several models, which is permitted by law No. 41 of 2004 as ideal solutions improve the development of empty waqf lands and resolve the utilization problems faced by Muhammadiyah institution waqf in Indonesia. It proposes a new mechanism through the categorization of Muhammadiyah waqf lands using Islamic investment models.
Based on the MWK report in 2019 (Table 1), the investment waqf model proposed in this study aims to resolve the development of the 5% empty waqf land problem faced by Muhammadiyah institutions. This model combines the Muhammadiyah waqf land category with an appropriate investment model in Islam to solve managerial problems in Muhammadiyah waqf institutions in Indonesia. Figure 1 explains the modus operandi of IWM.
There are at least five steps proposed in categorizing the Muhammadiyah waqf lands in Indonesia and their matching with IWM:  Step 1: Classification of the waqf lands. Examples of categories that Muhammadiyah waqf institutions can determine are potential locations, such as business centers, agriculture, commercial, residential, industrial estates, facilities for religious activities, and access to waqf lands.  Step 3: If the utilization of waqf land is not optimal and does not comply with applicable regulations, then substitution of waqf land needs to be done in increasing the role of Waqf for the service of the ummah. Mohd Puad et al., in their conceptual paper, state that the substitution model at least provides income without changes in designation determined by waqif. 48 Consequently, substitution is not a financing model. A classic example of this is the exchange of school buildings in sparsely populated areas with densely populated school buildings. The substitution model can quickly provide liquid funds needed for operational activities of waqf assets. In some instances, substitution can also improve waqf assets services, mainly if they use new waqf assets due to technological or demographic changes. 49  Step 4: Determine the investment model that fits the category of waqf land. The right investment model can increase productivity and waqf income. In this case, the Muhammadiyah waqf institution can choose an Islamic investment model such as ijārah muntahiya bit tamlīk, murābahah, istishnā', mudhārabah, musyārakah mutanāqisah, and muzāra'ah.  Step 5: The Muhammadiyah waqf institution will develop assets by choosing an investment in commercial service projects and agricultural products.  Management andMuamalah (CoMM 2014), 2014, 116-27. 49 Mohamed Asmy and Mohammed, "The Challenges of Micro Enterprises in Malaysia and the Prospect for Integrated Cash Waqf Micro Enterprise Investment ( ICWME-I ) Model." Vol. 16 No. 2 (2020) Management of Muhammadiyah waqf is currently only categorizing waqf land according to the deed of waqf pledge. Muhammadiyah's Waqf is now more directed towards utilizing schools and social facilities that cannot produce new benefits. In addition to the existing structure of waqf land, waqf land should also be classified into usage forms according to location. By identifying the use of waqf land following current waqf regulations in Indonesia, MWK will avoid waqf land that is not empowered productively. For example, if most waqf land is in the form of paddy lands, MWK can use it in agriculture. If the waqf land is strategic, MWK can request changes to the Waqf land use. However, if it is in commercial land, commercial projects must be developed to obtain income that can be used to establish existing waqf land and distribute it to those who need it. 50 To solve the problem of funding in empowering Muhammadiyah's empty waqf land, Figure 2 below illustrates the proposed categorization of waqf land using investment models.

Figure 2. The proposed investment model with the category of waqf land
In utilizing vacant waqf land owned by Muhammadiyah, there are at least several investment models as described below.

a. Muzāra'ah
This investment model is based on the muzāra'ah contract, where the Muhammadiyah waqf institution provides land (and possibly machinery) to farmers.  130 Varia Justicia Vol. 16 No. 2 (2020) take management responsibilities, while the waqf property manager takes the position of sleeping partner. 51 It is one of the models where management will exclusively be in the hands of financial institutions. Because of the potential of Muhammadiyah waqf land in rice fields in Indonesia, this model is a solution for developing waqf land in agricultural output. This investment concept offers justice between two parties, Muhammadiyah waqf institutions and farmers.

b. Ijārah Muntahiya bit Tamlīk
Build-lease-transfer (Ijārah Muntahiya bit Tamlīk) requires the Muhammadiyah waqf manager to control waqf land development. In its implementation, the manager of Muhammadiyah's Waqf gave a permit, which was valid for several years, to investors to erect a building on waqf land. Then the Muhammadiyah waqf manager rents out the building for the same period. The fund owner owns the period used for waqf purposes, such as hospitals, office rental spaces, or apartments. 52 The Muhammadiyah waqf manager runs the management and pays the rent periodically to the owner of the funds. The lease amount has been determined to cover the principal and profits desired by the fund provider. At the end of the permitted period, the owner of the funds will recover their desired capital and profits, and after that, the fund provider cannot re-enter the waqf property.

c. Murābahah
The application of the murābahah investment model requires Muhammadiyah waqf institutions to act as capital owners (entrepreneurs) who control the investment process that purchases equipment and materials needed through murābahah contract letters. At the same time, the funding comes from an Islamic bank. Muhammadiyah waqf institutions become the debtor to Islamic banking institutions for the price of equipment and materials purchased plus the financing mark-up. This debt will be paid from income from the development of waqf property.

d. Musyārakah Mutānaqisah
In the context of this investment model, Muhammadiyah waqf institutions develop waqf land through partnerships with other parties to establish commercial buildings such as shops, shop houses, or others on waqf land. Muhammadiyah waqf institutions and waqf partners then develop businesses to generate profits, with a payback agreement at the end of the period. After the business has been Vol. 16 No. 2 (2020) running, then the Muhammadiyah waqf institution takes over the ownership of partner shares through purchase.

e. Istishnā'
The istishnā' model allows Muhammadiyah waqf institutions to develop the required waqf property to the financial institution through an istishnā' contract. The financial institution or bank then contracts with the contractor to fulfill the waqf property manager's order on behalf of the financial institution. The istishnā' financing model also incurs debts for the management of the Muhammdiyah waqf property and can be resolved from the development of the waqf property. The financing provider does not have the right to interfere in the management of the waqf property.

Significance of the investment waqf model
There are currently no previous studies that analyze using investment models to develop Muhammadiyah waqf land in Indonesia. Therefore, proposing an investment model in developing waqf land is considered a model that can make waqf land more productive and used by the Muhammadiyah waqf institutions in Indonesia. This proposed investment model has a significant role in making Muhammadiyah Waqf's empty land more beneficial to the ummah. In the end, waqf land financing did not become a major obstacle faced by Muhammadiyah waqf institutions. Besides, consistent development of waqf land will enhance the reputation of Muhammadiyah waqf institutions. In addition to the implications for waqf institutions, this alternative model is expected to reduce Muhammadiyah waqf institutions' problems in providing funds for asset development.

DISCUSSION AND IMPLICATIONS
The problem in developing waqf land received the most attention from previous researchers. The former argument suggested that the majority of waqf land had not been managed productively and professionally. Proper management can play an essential role in Waqf for the development of socio-economic societies. Besides, it was said that the problem was due to the lack of funding sources, consumptive understanding of waqf institutions, and lack of management expertise. This waqf investment theory has implications for the development of literature on Waqf and empowerment of the ummah for waqf institutions and policymakers.
This proposed model suggests some suggestions for practitioners. First, waqf institutions that aim to improve social welfare must consider the supporting and inhibiting factors for the development of waqf land. 53 As discussed earlier, waqf institutions must-132 Varia Justicia Vol. 16 No. 2 (2020) do projects that appeal to waqif (e.g., by offering productive projects that impact society, 54 such as increasing collaboration with social institutions, other sharia finance, and stakeholders. 55 However, improving the skills of waqf managers are needed to create productive Waqf 56 . Thus, Waqf becomes more attractive to waqif in donating their donations to waqf institutions.
It is also suggested that the construction of Muhammadiyah empty waqf land using Islamic investment models must consider future risks. Finally, waqf policymakers must be aware that waqf land development faces challenges such as the lack of waqf institutions' capacity in empowering waqf land, lack of financial resources for maintenance of waqf assets, and lack of support from stakeholders regarding the regulation of empowering waqf land. Our findings agree with Ali and Arefeen that Waqf plays an essential role in reducing poverty, unemployment, and social inequality. 57 58 The amount of waqf land is not in line with the understanding of waqf institutions in managing the waqif beliefs. However, the submission of alternative models is expected to solve the problems that Muhammadiyah waqf institutions have recently faced. Thus, Muhammadiyah waqf can play a significant role in Indonesia's economic development.

DIRECTIONS FOR FUTURE RESEARCH
The opportunity for future waqf scholars is to empirically analyze the role of investment models in enhancing the role of Waqf as proposed in this paper. Some challenges for investigating the role of investment models are the nonlinear nature of the effects of the development of Waqf, such as waqf income generated by waqf institutions from the use of investment models both in terms of number and type in waqf institutions.
Finally, the investment model has increasingly considered a revitalization solution endowments and economic improvement. On the other hand, waqf policymakers turn to new models to overcome problems faced by waqf institutions. Thus, Waqf can be a social instrument capable of providing Waqf and is essential for the welfare and creating a new economic climate for Indonesia. Vol. 16 No. 2 (2020)

CONCLUSION
The development of Muhammadiyah's waqf land currently faces several problems and challenges such as lack of financing, unproductive waqf land, to the understanding of consumptive waqf management. Because of these obstacles, Muhammadiyah's Waqf in Indonesia requires strategic steps through more effective approaches to enhance its future role. As has been suggested, through IWM, it is essential to change the perception of Muhammadiyah waqf institutions that are dedicated to waqf land only for educational and social purposes and are reluctant to change the status of existing waqf property. This lack of understanding of waqf management leaves many empty waqf lands that are not empowered productively. In contrast, the land can generate profits through commercial and agricultural projects to provide income that will be used to develop existing waqf land and finance the community's social needs. The proposed IWM model offers the categorization of waqf land before determining investment models (Muzāra'ah, Ijārah Muntahiya bit Tamlīk, Murābahah, Musyārakah Mutānaqisah, and Istishnā') in the form of agriculture or commercial business that are following the characteristics of Muhammadiyah's Waqf. The strategic position of waqf land can help with initial analysis to determine its more productive use. Thus, Muhammadiyah waqf institutions in Indonesia can offer great potential from the waqf land they currently have.