AbstractThis paper is to formulate a model through which Istibdal management can increase waqf assets more productively and as economic development. This model is built on the basis of understanding the concept of waqf, learning from past and present waqf institutions and addressing the issue of waqf in Indonesia. This research uses descriptive qualitative research with the library research method. This study uses secondary data from the Indonesian Waqf Board (BWI), books, journals, bulletins,

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... overnment reports and websites. The whole process can be managed by a waqf institution as a waqf nazdir which collaborates to be supervised by BWI (Indonesian Waqf Agency) in using waqf assets in accordance with syaraih principles and as economic development. This research shows how Istibdal management can assist the Government of Indonesia in economic development with mixed public goods and public goods. This implies an alternative source of funding for Development. The application of the concept of waqf can learn and adapt from the model developed in this paper. This paper attempts to revive the function of waqf as a provider of diverse public goods and public goods from Islamic history. Incidentally, this paper also introduces waqf as economic development in Indonesia.Keywords: Istibdal Waqf, Management, Utilization.