Indonesia possesses significant potential for productive waqf as an instrument of socio-economic development; however, its realisation remains limited due to persistent managerial, institutional, and governance challenges. This study examines the model of productive waqf management in South Tapanuli (Tabagsel), covering Mandailing Natal, South Tapanuli, Padang Lawas, North Padang Lawas, and Padangsidimpuan City. Situated within the discourse of Islamic economic law and waqf governance, the research employs a descriptive qualitative approach based on field data and relevant documentary sources. The findings reveal substantial disparities in productive waqf development across the region. Among the five areas studied, Mandailing Natal demonstrates the most successful implementation through an integrated management system that combines agricultural, commercial, and community-based economic activities. In contrast, productive waqf in the other regions remains largely traditional and underutilised due to limited institutional capacity, weak managerial professionalism, and inadequate governance support. The study argues that the effectiveness of productive waqf management depends on the integration of spiritual, social, and economic functions through collaborative stakeholder engagement. As its principal contribution, this research proposes an integrative–participatory model of productive waqf governance as a novel framework for strengthening regional waqf management and enhancing its socio-economic impact.
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