Innovation of Cash Waqf in Rotte Bakery Business: a SWOT analysis

Abstract

The economic development within the framework of Sharia is in line with the Sustainable Development Goals (SDGs). Among these goals, the concept of waqf is significant for achieving long-term community welfare. Waqf, particularly in the form of cash waqf, is a powerful tool for financial and social development. This study examines the strengths, weaknesses, opportunities, and threats (SWOT) of the Rotte Bakery business model based on cash waqf managed by the Rotte Indonesia Mulya Foundation (YRIM). This qualitative study uses SWOT analysis to evaluate the Rotte Bakery business model. Primary data were collected through Focus Group Discussions (FGD) and in-depth interviews with informants. Secondary data were obtained from nationally and internationally reputable articles. Research findings show that Rotte Bakery, supported by cash waqf, demonstrates strong potential due to its well-known brand, quality products at competitive prices, and sustainable funding model based on Islamic values. However, to sustain growth and overcome challenges, Rotte Bakery needs to expand its market reach, innovate products, and conduct feasibility studies to avoid risks. The study implies that cash waqf managers (nazhir) in Indonesia should manage productive real sector businesses to increase the benefits of cash waqf. Policymakers should focus on enhancing the professionalism of nazhir to impact society positively. This research also serves as a guide for further investment in real sector waqf initiatives.