The View of the Experts on the Currency Depreciation of Cash Waqf Value

This study aims to analyze the view of the experts on the currency depreciation of cash waqf value. This research was decriptive qualitatif, the method of collecting data done by documentation and an interview. The data analysis used was content analysis. The result of this study found that the experts all agreed that the risk of decreasing currency value will have an impact on the value of cash waqf.


INTRODUCTION
Waqf is part of the perpetual alms which is believed that the rewards of it would be given continuously throughout its ongoing utilization (Ariff & Mohamad, 2017;Miah, 2019;Suhaimi, et, al., 2020;Mohamad & Mohamad, 2020). Waqf has its own distinctive characteristics in comparison to other forms of philanthropy (Kahf & Mohomed, 2017; How to cite: Amalia, R. (2020). The View of the Experts on the Currency Depreciation to Cash Waqf Value. Falah: Jurnal Ekonomi Syariah,5(2), 99-110. doi  The condition of the global economy also proves that the type of money in modern times is highly vulnerable to depreciation especially under crisis situation (Williamson, 1998;De Paula, et. al., 2017). The large contribution of unmanaged inflation is the result of the creation from conventional system implementation policies which have a negative impact on the value of money (Pažický, 2018;Ffrench-Davis& Griffith-Jones, 2019;Jin, Mendis & Sutherland, 2019). The character that is formed by the enforcement of conventional economic system is that the value of money has a low resistance, because of inflation often causes the crisis that will lead to the decreasing value of money and it could happen continuously (Huber, 2016;Skidelsky, 2018;Cossiga, 2019;Fantacci, 2019).
On the inflation, Maqrizi stated that the inflation conditions can not be eliminated, caysed by declining supply in aggregate, or increasing demand in aggregate (Pangiuk, 2013). This condition occurring inflation period can not be prevented because it is a form of market mechanism (Karim, 2008).
Several research was conducted related to this topics. Ariff & Mohamad (2017), stated that waqf is a form of wealth management which to process the accumulation, generation, purification, preservation and distribution of wealth, all to be conducted carefully in permissible ways. Furthermore, cash waqf can be an alternatif instrument to improve the economic walfare of society (Hasanah, 2011;Pusparini, 2016;Rohmaningtyas, 2017;Fuadi, 2018;Mohamad & Mohamad, 2020). In line with this opinion, Ahmad (2015) stated that cash waqf is able to promote enterpreneurship in the world with interest free loans through waqf institutions. Shaikh, Ismail, & Shafiai, (2017) found that the institution of waqf can fill the gap as a social finance institution by providing intermediation services for effectively utilising perpetual social savings. Khademolhoseini (2008) ;Siswantoro, Rosdiana & Fathurahman (2018), stated that waqf has a principle of perpetuity that makes it differ from a foundation, charity or ordinary donation fund as widely practiced in Western countries. According to Hasanah & Hakim (2017), the a principle of perpetuity has a permanent and immutable nature can be applied to create a lasting urban forest that does not have the potential to be evicted. Rosadi, et. al., (2018) found that the existence of waqf, not only in the individual obligations but also in social meaning in the context of collective obligations involving the property, the person creating a waqf, the manager of waqf, waqf users, and the legal act of waqf. On the other hand, Rusydiana (2018), stated that the development of cash waqf in Indonesia through the ISM framework can be classified into three criteria: first, the challenges faced in developing cash waqf. Second, the strategies or foundations needed in the cash waqf development framework. Third, the role of stakeholders and figures involved in managing waqf. Dewi (2019), stated that to to secure cash waqf from depriciation of asset value caused by the decrease of cash money value, she proposed that asset should invest in accordance with sharia. Furthermore, Mustofa, Santoso & Rosmalinda (2020), found that both Indonesia and Malaysia have been sufficiently rigid and representative.
However, those research was limited to a particular condition on the management of cash waqf and the role of the waqf institution as a social finance institution to develope economics walfare of the ummah. This study aims to do an indepth analyze on the views of the experts of the currency depreciation on cash waqf asset. The data collection was done by interviewing the waqf experts and analyze on the related literature about money waqf.

RESEARCH METHOD
This research was qualitative descriptive by conducting conceptual and empirical framework approach through critical analysis (Sugiyono, 2004). The conceptual approach was used to answer the question about how the impact of the decreasing currency value will affect the cash waqf assets. While the empirical approach was used to obtain data and evidence in the field about the views of experts regarding the decreasing currency value that will affect the waqf money assets.
The descriptive aspect was done to elaborate, describe, and explain thoroughly about the problem under the study, so that it can answer the problem formulation that exists in this research (Sangalang, 2017). This study conducts analysis by analayzing the information about cash waqf, seeking relationships from recognized literature sources, and finding results on the basis of data which will be analyzed and narrated, i.e analyzing and presenting the facts systematically so that it can be easier to understand and concluded. The data collection was done by interviewing the waqf experts and doing the study on the related literature about money waqf as listed in the table 1. Vol. 5 No. 2 (2020) ISSN (print): 2502-3918 | ISSN (online): 2502-7824 The data analysis technique used in this study was qualitative data analysis following three phases namely: data reduction, data display, and drawing a conclusion (Miles & Huberman, 1992). Data reduction was done, after reading, studying, and reviewing all the sources, by summarizing the core of the materials. Subsequently abstraction was performed and finally the data interpretation conducted to find a result of the research.

RESULT AND DISCUSSION
Yasir Nasution, former chairman of BWI SUMUT as well as Sharia Supervisory Board of Sharia Business Unit of Bank Sumatera Utara, argues that the presence of cash waqf as a form of derivative from charity practice has been developed to provide greater benefits for the people.
However, this charity needs to clarify many detailed characteristics in order to create a better management. He explains some facts that commonly in its practice, the cash waqf assets are managed only for buying the fixed asset which could be productive or used for the social welfare. Furtehermore, he mentioned that this kind of practice was not a form of cash waqf but waqf through money. However, based on real case in the field, the management is less productive.
Further, Yasir describes some obstacles occurred caused by the lack of understanding among the waqf managers (Nadzir) on the cash endowments due to the very rare practice of this cash waqf. They usually only treat these assets of cash waqf as a deposit fund, which is unfortunate. The policy and regulations on the management of cash waqf have been established, but the assets of cash waqf are still idle. If the asset of cash waqf is only treated as a deposit fund, then this will be susceptible to the impact of impairment of money value. While the money stored remains with the same exact nominal, but its purchasing power will decrease due to inflation.
The second respondent is a researcher and practitioner of waqf, and acting as Deputy Secretary at the Council of Ulama of Indonesia, North Sumatera, Akmaluddin Syahputra He does not comment much on the cash waqf practices that performed at Sharia Financial Institutions which follows the government regulations. This is because he is not a direct managerial member at the Waqf Board of Indonesia and LKS-PWU. However, He argues that the current practice of cash waqf will inevitably face the risk of a state of continuous decline in value throughout the year. In response to the depreciation that could affect the money waqf assets, then the money asset will be more productive when it is used as a source of capital for the people with mudharabah-based investment agreement, or could be aimed as sharia stocks which have a broader management system. Meanwhile, its implementation must avoid the potential risks that can threaten the existence of capital derived from the cash waqf.
Another opinion from Syafruddin Syam, a researcher of productive endowment, considers that the decreasing in money value or the fluctuation of the value of money will obviously affect the cash waqf. The object of cash waqf is money, and the value-shaped object will move along with the movement of objects which become its benchmark. In the case of money, which is a value-shaped item, then waqf money will follow the benchmark condition of money within that country. In Indonesia, the movement of the value of money depends on the condition of the interest rate. Even if the management agency conducts economic activities according to the Sharia principle, but basically the condition of money value in the transaction remains the same as money in conventional economic institutions. Therefore, money will still experience depreciation in both types of economic systems.
In cash waqf, either the reduced value of money in nominal or intrinsic value could be a violation to the norm of waqf. However, since waqf in practice has put its justification to the aspect of ijtihad ulama, there is no direct mention that this case is a violation. It is just necessary to review the intent and purpose of waqf and generalize it as the benefit that goes on continuously and can be felt by society. Therefore, if there are future findings which can formulate on how to maintain the money value in cash waqf, then why should this idea be eliminated? This could be a part for the next regulation on cash waqf to grow and how to endow. It would need further discussions in order to formulate clear and better regulation for money management, so that the existing risks could be minimized.
Another respondent, H. Arso, vice chairman of Indonesia Waqf Board (BWI) in North Sumatra and role vice chairman of Indonesia Ulema Council (MUI) in North Sumatra, gave his opinion that Indonesia Waqf Board at a Nadzir waqf institution and also Indonesia Ulema Council (MUI) have not been focused on the influence of declining value of money among scholars in North Sumatera, Indonesia. Indonesia's main obstacle is that most of its Muslim people are not 'literate' about cash waqf instrument, hence, the government is still focusing on the socialization of cash waqf, despite its awareness that the depreciation of money value would lead to reducing the benefits. Therefore, cash waqf should be managed in a more productive way, so that its value is not reduced.
On the other hand, Syafruddin has mentions some ways to eliminate a money, not only by stealing or destroying the physical form, but it can also be done by letting the value dropped. While Mr. Arso has also acknowledged that recently, some waqf management institutions only receive waqf funds but do not manage them properly due to the constraints they face from various aspects. This will also affect the value of the unmanaged money. Money continues to depreciate because it is not functioning and the Vol. 5 No. 2 (2020) ISSN (print): 2502-3918 | ISSN (online): 2502-7824 quality of its usefulness also decreases. However, waqf money management institutions are now becoming more familiar with managing endowments for certain assets to be productive.
The views of the expert of the decreasing value of currency to cash waqf asset can be seen in the Table 2, In practice, the cash waqf assets are managed only for buying the fixed asset which could be productive or used for the social welfare. Furtehermore, he mentioned that this kind of practice was not a form of cash waqf but waqf through money.

Akmaluddin Syahputra
Deputy Secretary at the Council of Ulama of Indonesia (MUI, North Sumatera Province.
The current practice of cash waqf will inevitably face the risk of a state of continuous decline in value throughout the year. In response to the depreciation that could affect the money waqf assets, then asset will be more productive when it is used as a source of capital for the people with mudharabah-based investment agreement, or could be aimed as sharia stocks which have a broader management system.

Syafruddin Syam Researcher
In Indonesia, the movement of the value of money depends on the condition of the interest rate. Even if the management agency conducts economic activities according to the Sharia principle, but basically the condition of money value in the transaction remains the same as money in conventional economic institutions. Therefore, money will still experience depreciation in both types of economic systems.

H. Arso
Vice Chairman of BWI in North Sumatera Province & Vice Chairman at the Council of Ulama of Indonesia (MUI, North Sumatera Province.
Some waqf management institutions only receive waqf funds but do not manage them properly due to the constraints they face from various aspects. This will also affect the value of the unmanaged money. Money continues to depreciate because it is not functioning and the quality of its usefulness also decreases.
Based on the views of experts of cash waqf, the practice of managing cash waqf requires professionalism in its management. Regulations of waqf government have been well established to meet the demands of professionalism. The established regulation has appointed the authorities to be given the trust in the management of money waqf and assets of cash waqf. The related parties are the Indonesia Waqf Board (BWI) as the Nadzir of endowments and the Shariah Financial Institutions of Waqf Money Management (LKS-PWU) and Sharia Banks as those who are expected to actively manage money to be collected and managed professionally.
The indirect impact of the conventional system on money will also be experienced by LKS-PWU which is responsible for managing the money waqf assets. If the value of money is continuously allowed to decline and vulnerable to the crisis, then the usefulness of the benefits will also decrease. On the other hand, nowadays cash waqf has been known publicly, where wakif can endow his money in the period desired by the wakif. It is well known that cash waqf can be an alternatif instrument to improve the economic walfare of society as stated by Hasanah (2011);Ahmad (2015); Pusparini (2016); Rohmaningtyas (2017); Ariff & Mohamad (2017) ;Shaikh, Ismail, & Shafiai (2017);Fuadi (2018); and Mohamad & Mohamad (2020). Even Mustofa, Santoso & Rosmalinda (2020) found that Indonesia have been sufficiently rigid and representative.
Therefore, if the condition of money stability in value is not anticipated from the beginning, then the money waqf assets provided by the wakif could potentially continue to diminish following the condition of the money. This is in contrast to the characteristics of a waqf which requires permanency or eternal condition. As has been said before, the waqf of money relies in its purchasing value. Therefore, if a wakif endows his money within a certain period, then there is a possibility that his waqf will be reduced because of the condition from the decrease in value of money. Therefore, the stability of the value of money could greatly affect the condition and also the management of money waqf assets. For this decreasing value, Dewi (2019) stated that to secure cash waqf from depriciation of asset value caused by the decrease of cash money value, she proposed that asset should invest in accordance with sharia, Investments outside the sharia bank must be insured in sharia insurance.
On the other hand, Nazhir's expertise in managing and developing the waqf properties must being a concern in order to achieve the purpose, function and designation of the waqf properties. This is in line with Rosadi, et. al., (2018), that the existence of waqf, not only in the individual obligations but also in social meaning in the context of collective obligations involving the property, the person creating a waqf, the manager of waqf, waqf users, and the legal act of waqf. Rusydiana (2018) added that the development of cash waqf in Indonesia through the ISM framework can be classified into three criteria: first, the challenges faced in developing cash waqf. Second, the strategies or foundations needed in the cash waqf development framework. Third, the role of stakeholders and figures involved in managing waqf. Vol. 5 No. 2 (2020) ISSN (print): 2502-3918 | ISSN (online): 2502-7824 The current cash waqf practices will experience the risk of impairment of money due to different economic conditions in the past, this is inline with as stated by Kahf, M., & Mohomed (2017); Gürsoy (2018).
The risk of the decreasing currency value is a risk which money could experience as long as it does not apply to a standard on more stable objects, because money does not store its value on its physicality. From this discourse, Rafiqi (2018) recommend gold and silver as the standard of the value for cash waqf because of its stablilty as stated by Noviyanti (2017). Therefore, without a stable standard on its value, there is a case where money continues to grow in nominal terms but could keep depreciating in terms of its value. This condition is often perceived in the endowments of money used as capital investment.

CONCLUSION
Based on the discussion that has been reviewed, it can be concluded that the experts all agreed that the risk of decreasing currency value will have an impact on the characteristics of waqf (in terms of object permanence and long-term benefits). Especially on the risk of decreasing currency value will affect the eternal/permanency value of waqf assets.
However, future research may add wider scope of experts from various backgorund of the study to find the more ideal model of the research and more realiable and valid result.