Pustaka Ilmiah Universitas Padjadjaran

Abstrak

A Model of Portfolio Investment Management of The Islamic Endowment Funds Using System Dynamics Methodology

This research tries to find out the potency of endowment funds as an innovation financial instrument, especially cash waqf, to alleviate the poverty in Indonesia. This research also tries to offer a design of the endowment funds management system in a system dynamics model. Using the system dynamics methodology, we try to know the structure of the endowment funds management system and simulate the behaviour of endowment funds.

Cash Waqf, a special charitable endowment fund, is expected to become one of the alternative instruments for the poverty alleviation programs in Indonesia. These programs require huge amount of fund that cannot be provided thoroughly by the government. Therefore, initiation of new sources of fund for such a program is inevitable. In the Islamic sosio-economic concept, there is a source of social fund that is economically and politically free of charge, namely cash waqf (wakaf tunai). In this concept, Nadzir (cash waqf fund manager) collects the fund from Waqif (cash waqf payer) and invest the money in the real sector (mainly Small & Medium-sized Ventures) and in any syariah-based investment opportunities.

Nadzir will then allocate all profits and returns gained from the investments to any poverty alleviation programs to enhance the quality of poor people’s life, such as free education and health service, cheap basic food, etc. Nadzir is obliged to maintain the amount of fund in such a way that it does not go below the initial amount. Therefore, Nadzir not only should be highly capable, but also needs a financial institution, which has been proven to be experienced, highly capable and effective in helping SMEs development efforts, since such a microfinancing program is considered as the most vital portfolio in the poverty alleviation program. Therefore, it’s necessary to design an instrument which is able to control the endowment funds management especially cash waqf.