In  Indonesia,  the  term  social  welfare  can  be 
found  in  Law  No.  11  of  2009  concerning  “Social. 
Welfare”.  by  Law  No.  11    Year  2009  concerning 
Social welfare repeal Law No.6 Year 1974 on basic 
provision  and  conditions  for  social  welfare.Social 
welfareis as a condition  in which material, spiritual 
and social needs of citizen  are fulfilled. 
The  formulation  of  idea  of  life  encompasses 
material and spiritual life,  by  not  placing  one  more 
important than the other, but rather trying to look at 
the effort to get the balance point. (Onny Medaline, 
2017).  As  the leading  agency  in  social  welfare  and 
development,  the  government  should  intervene  for 
service  and  development  on  social  welfare  in 
planning, organising, and directing. 
The involvement of the state in realizing juridical 
normative  social  welfare  is  formulated  in  the 
preamble of the 1945 Constitution on welfare. Social 
welfare has become an important function within its 
national development strategies in order to  advance 
general  prosperity,  to  develop  the  nation's 
intellectual  life,  and  to  contribute  to  the 
implementation of  a world order based on  freedom, 
lasting peace and social justice.  Generally, waqfis a 
legal action of someone or a group of people or legal 
entity  to  separate  the  property owned and put it for 
religious  purpose  for  the  entire  time  or  for  another 
public  needs  based  on  Islam.  On  other  hand,  Waqf 
institution  contributed  in  Social  welfare  and 
warranty  is  regulated  in  law  of  the  republic  of 
Indonesia No. 41 of 2004 concerning waqf.  
The  material,  spiritual,  and  social  needs 
mentioned  in  the  definition  of  social welfare  in  the 
Law  on  Welfare  is  important  element  in  achieving 
prosperity  for  society  as  a  whole,  individuals  and 
social  beings.  Furthermore,  these  parameters  are 
used  as  a  reference  in determining  welfare  towards 
the  existence  and  development  of  waqf  above, 
especially waqf of ulayat land in West Sumatra    
Waqf  serves    the  welfare  of  society,  which 
includes  institutions  that  have  activities  and 
programs towards the realization of general welfare, 
in  which  the  business  is  managed  with  social 
services  by  Nazhir.Waqf  also  includes  activities  or 
activities  organized  by  an  institution  ,  BWI,  to 
achieve  a  prosperous  condition.  Waqf  is  also 
expected  to  create  a  condition  of prosperous  life  in 
the  fulfillment  of  material,  spiritual  and  social 
interest in social balance. 
Waqf can play important role, if the number and 
size  of  the  one  involved  in  social welfare  activities 
can be increased  
Economy    can  be  defined  for    the  growth  of 
increasing    the  real  output.  It  is  also  defined  as  a 
broad  perception  that  refers  to  the  process  of 
economic  growth  that  has  capacity  to  raise  the 
welfare of the people. (Jait Mubarok, 2008) 
Based on the nature of waqf output, waqf assets 
may be classified in two categories : (Jait Mubarok, 
2008) 
1.  Direct  waqf which means  asset the produces 
comsumptive  service  to  be  utilized  by 
beneficiaries  such  as  school,  hospital,  and 
orphanages.  The  purpose  of  this  kind  of 
waqfmay be    of  general  philanthropy,  such  as 
school or a private philanthropy. 
2.  Waqf  investmentis  intended  for  investment.  It 
produces  marketable  goods  and  services  to  be 
sold  in order to generate a net income which 
will  be  distributed  to  the  beneficiary. 
Beneficiary  may  be  general  charity  such  as  a 
mosque  or  scientific  research  or  private 
philanthropy  consisting  of  the  descendents  of 
the founder.   
 
Hence,waqf investment is not going to assume an 
important role in the development of our economic, 
the  most  important  element  for  modern    islamic 
society.
 
3.2  Potential of Ulayat Land Waqf in 
West Sumatra 
Reality  and  potential  of  waqfin  West  Sumatera  has 
importante role  in waqf  development and social 
economic  welfare.Waqfassets  in  West  Sumatra  are 
as  many  as  5,694  locations  with  an  area  of  7,501 
001,15  m2  with  19  districts  and  cities  of  West 
Sumatra  province.  However,  they  are  still  in 
traditional  forms,  that  have  not  been  managed 
productively  and  the  capacity  of  Nazhiris  not 
professional.  Thus,  the  potential  wealth  of  waqfis 
worth  trillion  of  rupiahs  without  playing  a  role  in 
resolving  various  social  issues  such  as  poverty  and 
unemployment.  
Waqf  land  of  ulayat kaum in West 
sumaterashows  the  form  of  direct  or  consumptive 
representation only to provide direct  services to  the 
surrounding community, such as mosque , mushalla, 
or  surau.  About  65%  of  the  waqf  land    has  been 
taken  over  to  projects.  People  agree  to 
registerwaqffor  the  mosque  built  on  ulayat land. 
Registration of waqf land is carried out on initiatives 
and cooperation programs between the ministries of 
religion  and  BPN.  The  implementation  of  this 
program  aims  to  continue  to  preserve  and  provide 
legal  certainty  of  waqf lands that have  long existed 
in West Sumatra.