Assessing the potential of waqf land in addressing the housing backlog in Indonesia

Purpose The housing backlog in Indonesia poses significant social, economic and environmental challenges, particularly concerning low homeownership and widespread slum housing. This study aims to assess the potential of waqf land, an instrument of Islamic economics, as an alternative resource to address the housing shortage and promote sustainable community development. Design/methodology/approach Using 2024 national waqf data, the study identifies 57,260 hectares of waqf land, over half of which are certified, as a viable resource for housing development. Through allocation schemes of 5%, 7.5% and 10%, the analysis estimates potential housing areas ranging from 28.63 to 57.26 million m². Findings Findings indicate that high-rise residential developments, especially in provinces such as Aceh and Java, could significantly reduce slum areas and improve homeownership. The results underscore waqf land’s strategic role in advancing sustainable and equitable housing solutions, with region-specific allocation strategies recommended to maximize its contribution to community welfare and human well-being. Originality/value This study demonstrates that waqf land has significant potential to support the resolution of housing backlogs in Indonesia.