Cultivating Economic Value: How Productive Waqf and Greenhouse Technology Drive Local Development

¹ Universitas Muhammadiyah Magelang, Magelang, Indonesia
² Islamic Philanthropy Study Center, Universitas Muhammadiyah Magelang, Magelang, Indonesia

^* Corresponding author: This email address is being protected from spambots. You need JavaScript enabled to view it.

Abstract

The agricultural sector in many Muslim-majority developing countries is often hindered by limited capital and technological stagnation. This study aims to examine how the integration of productive waqf (Islamic social finance) and greenhouse technology can serve as a catalyst for local economic development. Design/methodology/approach: Adopting an inductive qualitative approach, this research utilizes a case study of the Premium Melon Waqf Greenhouse Cluster in Gunung Kidul, Indonesia. Data were collected through in-depth interviews, field observations, and document analysis, and were analyzed to identify economic impacts and operational strategies. Findings: The results indicate that the synergy between cash waqf and modern greenhouse technology creates a high-impact economic ecosystem. The program successfully transformed unproductive land into a high-yield asset producing 35–40 tons of premium melons annually per hectare. Financially, the project projects a break-even point within 2.5 years with substantial returns for investors. Socially, it creates a multiplier effect by raising local wages by 142.42% compared to conventional farming and fostering skill development.