An organisational legitimacy study on governance of waqf authorities in Indonesia and Singapore

Abstract

Throughout history, waqf significance is closely related to the roles of its leading stakeholders. While the potential of waqf remains, this thesis focuses on the waqf authorities due to their ability to lead and direct the role of waqf and influence other key stakeholders, such as waqif, mawquf ‘alayh, and mutawalli amongst others. In countries with a hybrid/mixed waqf system, including Indonesia and Singapore, waqf authorities are typically represented by government-affiliated institutions established to execute both governance and operational roles. While governance represents important area for waqf revival, most of the existing studies focus on the internal governance of the waqf institutions. There is lack of available research which focus on the waqf authorities’ governance. This study aims to examine and assess variation of the waqf authorities’ governance roles in the waqf sector. By embracing the organisational legitimacy perspective, this study conducts exploratory qualitative research on waqf authorities’ governance. Multiple case studies in Indonesia and Singapore employed 30 in-depth interviews, 3 focus group discussions, observations, and document/content analysis are undertaken as part of the research design. Verbatim transcription of the collected data is then analysed thematically with the hybrid coding process. Pertinent themes elicited are requirement to put interest on waqf and issues on waqf authorities’ performance, structure, procedure, and human resources. In the waqf sector, the current study finds that the best interest for the waqf properties and mawquf ‘alayh underpins the “appropriateness” of governance mechanism by the waqf authorities. As such, waqf authorities need to demonstrate that their existence, performance, structure, procedure, and human resources bring the best interest for the waqf. This study provides empirical evidence on the relevancy of measurable performance indicators for the waqf authorities, including the impact for the waqf and mawquf ‘alayh, While the formulated policy should provide clarity and effectively address the grass-root issue by meaningfully accommodating relevant stakeholders and public, the decision shall be made through adequate due process with the least costly bureaucracy. Moreover, substantial oversight shall consider the tradeoff between procedural efficacy and cost to waqf. Since the stature of human resources within waqf authorities are related to their quality of work, there should be transparency, independent recruitment, and proper staffing management to accommodate “right people in the right place”. Though the pragmatic expectations can be found in several matters on waqf, this study finds that Moral legitimacy is more pertinent to waqf authorities. Waqf authorities’ governance gap leads to a gap on governance by the waqf authorities towards the waqf sector. This study suggests that waqf authorities need to fulfil the expectations of their immediate stakeholders to improve their governance and organisational legitimacy.

Keywords: Governance, Organisational Legitimacy, Waqf Authorities, Waqf