Taufikur Rahman, Farkhani Farkhani

The Accountability of Waqf Managers: Reviewed from Judicial and Accounting Aspects (PSAK NO 412)

Introduction

The accountability of waqf managers: reviewed from judicial and accounting aspects (psak no 412). Explore accountability of Indonesian Waqf managers, examining judicial aspects, dispute resolution, and compliance with PSAK 112 for financial reporting.

Abstract

Abstract: This research aims to find out the role of the Indonesian Waqf Board in terms of waqf management and dispute resolution, as well as whether BWI Salatiga City has used waqf accounting standards, namely PSAK number 112 concerning waqf accounting in its waqf accounting treatment to realize institutional accountability. Waqf management is based on law number 41 of 2004 concerning waqf. Meanwhile, the accounting standards used as a basis for preparing waqf financial reports are standards issued by the Sharia Accounting Standards Board (DSAS) of the Indonesian Accountants Association (IAI), namely PSAK 112 concerning Waqf Accounting. The research method uses a comparative descriptive method, namely by describing and illustrating the state of the research object and then comparing it with existing standards. Interviews, observation, and documentation obtained research data. The research results show that the Salatiga waqf institution (BWI Salatiga City) has not fully presented its financial reports by generally accepted accounting standards, both PSAK 45 concerning financial reporting of non-profit entities and PSAK 112 concerning waqf accounting.  Furthermore, in resolving disputes regarding waqf issues, BWI Salatiga City only acts as a mediator, companion, director, and supervisor, the resolution of waqf problems tends to be left to each party involved. Keywords: Waqf Disputes, Waqf Accounting, Accountability, Waqf Management

Review

This paper addresses the critical issue of accountability for waqf managers, a topic of significant contemporary relevance given the growing emphasis on transparency and good governance in Islamic social finance institutions. The stated aim is to investigate the role of the Indonesian Waqf Board (BWI) in waqf management and dispute resolution, specifically examining whether BWI Salatiga City adheres to waqf accounting standards (PSAK 112) to achieve institutional accountability. Utilizing a comparative descriptive method based on interviews, observation, and documentation, the research attempts to benchmark the practices of BWI Salatiga against established legal frameworks (Law No. 41 of 2004) and accounting standards. A notable inconsistency, however, is the discrepancy between the title's reference to "PSAK NO 412" and the abstract's consistent mention of "PSAK 112," which should be clarified for precise academic discourse. The research findings reveal concerning aspects regarding the accountability of BWI Salatiga City. Primarily, the institution has not fully complied with generally accepted accounting standards, specifically PSAK 45 (Financial Reporting of Non-Profit Entities) and PSAK 112 (Waqf Accounting). This non-compliance significantly undermines the realization of institutional accountability, as transparent and standardized financial reporting is fundamental to demonstrating proper stewardship of waqf assets to stakeholders. Furthermore, concerning judicial aspects, BWI Salatiga City's role in dispute resolution appears limited to mediation, accompaniment, direction, and supervision, with the ultimate resolution often left to the involved parties. While these roles are important, they may not fully encompass the robust "judicial" oversight suggested by the paper's title, raising questions about the board's proactive intervention in complex waqf disputes. Overall, this paper makes a valuable contribution by highlighting practical gaps in waqf accountability within a specific Indonesian context. It underscores the urgent need for waqf institutions to rigorously adopt and implement relevant accounting standards to enhance transparency and build public trust. The findings suggest that merely having legal and accounting frameworks in place is insufficient; consistent adherence and enforcement are paramount. Future research could expand this comparative analysis to other BWI branches across Indonesia to ascertain if these findings represent a broader systemic issue. Additionally, a deeper exploration into the specific reasons behind the non-compliance and the development of actionable strategies for improving both financial reporting and dispute resolution mechanisms would significantly enhance the practical impact of such studies.

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