Cash Waqf Financial as a Potential Financial Instrument for Funding Public-Private Partnership (PPP) Infrastructure Projects in Indonesia

Abstract

Indonesia faces financial challenges in providing public infrastructure through Public-Private Partnership (PPP) schemes, often resulting in project delays. Existing literature on PPP financing highlights the need for sustainable alternative funding sources, but little research has examined Islamic social finance instruments, especially cash waqf, as a viable solution. This study explores the potential of cash waqf as an alternative financing mechanism to support PPP projects in Indonesia. Drawing on a comprehensive literature review, this study adopts a theoretical approach to identify the key barriers in PPP financing and explore how cash waqf may offer viable solutions. Initial findings suggest that cash waqf, with an estimated annual potential of IDR 180 trillion, can offer a stable and ethical financing framework for infrastructure development. This study fills the gap in integrating cash waqf into PPP models and provides a conceptual foundation for future empirical and policy-oriented studies.