<![CDATA[This policy paper describes that waqf is one of the Islamic philanthropic instruments with significant potential to support sustainable development. However, in Indonesia, waqf practices are still dominated by traditional models such as the construction of mosques, pesantren, and cemeteries. This indicates a gap between the ideal potential of waqf as a productive instrument and the current reality of its underutilized management. This study aims to analyze strategies for optimizing Green Waqf as an environmentally friendly financing instrument aligned with the Sustainable Development Goals (SDGs) and the Strategic Plan of the Ministry of Religious Affairs 2025–2029. The methodology used is a qualitative approach through literature review, regulatory analysis, and limited interviews with stakeholders. Analysis was carried out using a fishbone diagram to identify root causes and the USG method (Urgency, Seriousness, Growth) to prioritize problems. The findings show that low public literacy is the root problem, leading to limited nazir capacity and a lack of program innovation. The discussion reveals that without public literacy, the contribution of waqf to sustainable development will remain insignificant. This study offers three policy alternatives: (1) public literacy programs, (2) strengthening regulation and incentives, and (3) multi-stakeholder collaboration. The conclusion indicates that a Ministerial Regulation on Green Waqf is the most strategic policy option. The recommendation is addressed to the Ministry of Religious Affairs to formulate derivative regulations on Green Waqf so that it can contribute significantly to achieving the SDGs and the Ministry’s Strategic Plan 2025–2029.]]>
