Proceedings of Aceh International Seminar on Zakat and Waqf
Fakultas Ekonomi dan Bisnis Islam, Universitas Islam Negeri Ar-Raniry Banda Aceh
PERAN KOPERASI SYARIAH DAN UMKM DALAM MENINGKATKAN KETAHANAN EKONOMI LOKAL
Local economic resilience is crucial in mitigating the impact of various economic shocks at the regional level. Nevertheless, access to financing, particularly for micro, small, and medium enterprises (MSMEs), remains limited. Sharia cooperatives hold the potential to offer an inclusive financing solution in accordance with Islamic financial principles. This study aims to analyze the role of sharia cooperatives and MSMEs in enhancing local economic resilience and identify potential synergies between them. This study employs a literature review with qualitative analysis methodology drawing from various recent research findings related to sharia cooperatives, MSMEs, and local economic resilience. The results show that sharia cooperatives make a significant contribution through inclusive financing based on the principles of justice and social empowerment. However, obstacles remain, including low sharia financial literacy, limited cooperative management, and unequal access. In conclusion, strengthening the synergy between sharia cooperatives and MSMEs, increasing literacy, and improving good governance are essential to sustainably strengthen local economic resilience
Copyright (c) 2026 Proceedings of Aceh International Seminar on Zakat and Waqf https://journal.ar-raniry.ac.id/index.php/AISZAWA/article/view/9747
THE ROLE OF ISLAMIC SOCIAL FINANCE IN ADDRESSING POVERTY AND INEQUALITY IN INDONESIA: A SYSTEMATIC LITERATURE REVIEW
Indonesia faces multidimensional challenges to escape the middle-income trap and achieve high-income status by 2045. Despite relatively stable economic growth (averaging 4.9% from 2000 to 2022), poverty reduction has stagnated at around 10 %, indicating that conventional economic growth is insufficiently inclusive. On the other hand, Indonesia, with the world's largest Muslim population and ranked first in the 2021 World Giving Index, has tremendous potential for developing Islamic Social Finance (ISF). This article uses a Systematic Literature Review (SLR) method to critically analyze the strategic role of ISF instruments—particularly Zakat, infaq/sedakh, and waqf—in accelerating poverty alleviation, reducing inequality, and supporting inclusive economic development in Indonesia. The study revealed that the estimated national zakat potential of IDR 327 trillion could fund up to 76% of the government's social protection budget. Meanwhile, cash waqf offers a sustainable social investment model for long-term financing in the education, health, and MSME empowerment sectors. However, the optimization of ISF remains hampered by challenges in literacy, governance, transparency, and policy integration. This study concludes that ISF is not merely a philanthropic instrument, but rather a powerful complementary policy to strengthen the government's fiscal policy towards achieving a sovereign and equitable Golden Indonesia 2045.
Copyright (c) 2026 Proceedings of Aceh International Seminar on Zakat and Waqf
ANALYSIS OF THE IMPLEMENTATION OF THE INTERNAL AUDIT PROCESS AT LAZISMU
Zakat institutions are expected to be able to collect more zakat funds because they see that the existing potential has not been maximized and can be collected. Zakat institutions operate with effective and efficient principles. The role of internal audits that conduct periodic assessments of the effectiveness and operational efficiency of zakat institutions is important. This study aims to analyze the process of implementing internal adut carried out by the Central Lazismu . The research methodology uses qualitative methods. The method was chosen to explore the object of research in depth. Data collection uses the interview method using the triangulation method, which involves 3 informants, namely the head of the Audit Division as the audit implementer and the City lazismu as the audit object. The results of the study explain that structurally, the central government does not have an internal audit division in its organizational structure. But audit activities. However, the internal audit is carried out by the Sharia Supervisory Board, the Financial Supervisory and Supervisory Institution (LPPK) in the Muhammadiyah organization, the KAP Audit, and the Sharia Audit. These audit activities are quite significant in providing control and development for your lazismu . Development and evaluation activities are carried out at regular work meetings, which are carried out regularly every 3 months. The meeting was held to explore whether performance has been achieved or not and to make improvements to the performance system or the results of performance achievements. In the risk management process, several control activities have been carried out such as cash control and reporting. It can be concluded that control activities have been implemented in several activities, but have not implemented formal documents related to risk management.
This study aims to explore how zakat and waqf play a strategic role in supporting the realization of a green economy in Indonesia and the Islamic world. Through the innovative use of zakat funds and waqf assets, various environmentally friendly initiatives such as water conservation, renewable energy, waste management, and reforestation can be sustainably funded. Collaboration between Islamic philanthropic institutions, the government, and the community increases the effectiveness of zakat and waqf, not only for the economic empowerment of the poor but also for strengthening environmental conservation efforts and achieving the Sustainable Development Goals (SDGs).This study used a descriptive qualitative approach. This research shows that zakat and waqf play a crucial role in promoting a green economy by funding environmental conservation programs, renewable energy, and green economy-based community empowerment. Collaboration between management institutions, the government, and the community increases the effectiveness of utilizing Islamic philanthropic funds for environmental conservation. Going forward, policy synergy, governance innovation, and public education are needed to optimize the role of zakat and waqf as pillars of the green economy. This research provides suggestions and recommendations that the development of environmentally based zakat and waqf has great potential to strengthen the green economy, reduce environmental damage, and encourage economic, social, and ecological sustainability.
Copyright (c) 2025 Proceedings of Aceh International Seminar on Zakat and Waqf
DETERMINANTS OF MEDIUM ENTERPRISES’ INTEREST IN PAYING ZAKAT AT THE BAITUL MAL
This study aims to examine the key determinants of zakat interest among medium-sized entrepreneurs in Langsa City, focusing on the effects of zakat literacy and social environment, as well as the mediating role of trust in zakat institutions. Specifically, it analyzes the direct influence of zakat literacy and social environment on zakat interest, the effects of zakat literacy and social environment on trust, and how trust mediates these relationships. The research was conducted from January to May 2025 using a quantitative approach. Primary data were collected through structured questionnaires based on a five-point Likert scale. The population comprised 3,254 medium-sized entrepreneurs who met the zakat nisab threshold, with a sample of 97 respondents determined using the Slovin formula and selected via simple random sampling. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) through Smart-PLS 4.0 to test both direct and indirect causal relationships, including mediating effects. The results reveal that zakat literacy has a positive and significant effect on zakat interest and trust, while the social environment significantly influences trust but does not have a direct significant effect on zakat interest. Trust was found to have the strongest and most significant impact on zakat interest and serves as a crucial mediating factor. Specifically, trust mediates the relationship between both zakat literacy and social environment with zakat interest, indicating that social encouragement alone is insufficient to drive zakat participation without institutional trust. These findings highlight that improving zakat literacy and building trust in zakat institutions are essential strategies to enhance entrepreneurs’ willingness to pay zakat. In conclusion, while social and educational factors contribute to shaping zakat behavior, trust is the key determinant that transforms knowledge and social support into active zakat participation among medium-sized entrepreneurs in Langsa City.
UTILIZATION OF DIGITAL CAMPAIGNS FOR ZAKAT AND WAQF
Various studies have explored reforms in the fields of zakat and waqf, both traditional and modern. However, a crucial gap remains: educating the public, particularly Muslims, about the importance of zakat and waqf in building society. This reform must be balanced with public education on zakat and waqf literacy. In Indonesia, the potential for zakat reaches more than Rp327 trillion per year, while the potential for cash waqf is estimated at Rp180 trillion per year. However, the realization of zakat and waqf collection remains far below this potential. This gap between potential and realization presents significant challenges in terms of public education, awareness, and literacy. On the other hand, developments in digital technology open up significant opportunities to improve literacy conditions and increase public participation in zakat and waqf. Java has an internet penetration rate of 85%, followed by Kalimantan at 78.72%, Sumatra at 77.12%, Bali–Nusa Tenggara at 76.86%, Sulawesi at 71.64%, and Maluku–Papua at 69.26%. Three main points can be concluded. First, the urgency of digital campaigns in increasing zakat and waqf literacy through education, transparency of zakat and waqf institutions, and community participation. Second, the opportunities and challenges of utilizing internet penetration to expand the reach of zakat and waqf literacy. Third, strategies for increasing and strengthening zakat and waqf literacy through digital campaigns in the form of creative content, sharia crowdfunding, and collaboration with influencers.
The Role of Baitul Mal Banda Aceh City in The Development of Micro Businesses in Banda Aceh
Baitul Mal has four roles, including providing financing, providing various consultations and assistance to MSMEs, facilitating networks and connections between MSMEs and other business actors and providing training and education to MSMEs. However, Baitul Mal Banda Aceh City only carries out two roles, namely providing financing and providing various consultations and assistance to MSMEs. The purpose of this research is to determine the role of Baitul Mal Banda Aceh City in the development of micro businesses in Banda Aceh City, to determine the development of micro businesses after receiving financing from Baitul Mal Banda Aceh City and to find out the obstacles faced by Baitul Mal Banda Aceh City in distributing financing for micro businesses. This type of research is qualitative research with data collection techniques through interviews and documentation. The results of this research indicate that Baitul Mal Banda Aceh City has not played its role optimally. Because MSMEs still need training in running their business. Even with business capital assistance, their business has increased its income. But they also still need to increase their capacity or ability to manage their business.
MEMBANGUN ZAKAT PRODUKTIF BERKELANJUTAN: SEBUAH REFLEKSI DAN PROYEKSI
Poverty remains a major challenge in Indonesia despite the declining trend in poverty rates. Zakat plays an important role as an instrument for wealth distribution and poverty alleviation, particularly through productive zakat programs. This study aims to reflect on the current conditions and to project strategies for strengthening sustainable productive zakat, using a case study of BAZNAS Deli Serdang Regency. The research employed a descriptive qualitative approach with SWOT analysis. The findings indicate that productive zakat has strengths such as regulatory support, increasing zakat literacy, and opportunities for synergy with the national development agenda. Nevertheless, weaknesses remain, including limited coverage, low fund allocation, and insufficient business mentoring. The position of productive zakat falls into the aggressive strategy quadrant (S–O), meaning that the main strategies should focus on service digitalization, synergy with CSR programs, scaling up interventions, replicating successful models at the national level, and diversifying businesses based on local potential. With these strategies, productive zakat has the potential to serve as a sustainable instrument in transforming mustahik into economic self-reliance while supporting the achievement of the Sustainable Development Goals (SDGs).
BRIDGING COUNCILS, STRENGTHENING WAQF: GOVERNANCE AND DIGITAL INTEGRATION IN MUHAMMADIYAH
This study examines the governance of waqf in Muhammadiyah, focusing on the importance of inter-council synergy in the digital era. Muhammadiyah manages thousands of waqf assets across sectors such as education, health, and social services; however, the governance system still faces challenges of fragmented data, limited certification, and weak coordination across councils. Drawing on institutional documents and interviews with the Majelis Pendayagunaan Waqf (MPW) and related councils, the research employs data reduction, display, and SWOT analysis to provide a structured evaluation. Findings reveal that MPW plays a central role in asset inventory, certification, legal advocacy, and the productive use of waqf, supported by innovations such as SIMAM (Sistem Informasi Manajemen Aset Muhammadiyah) and WaqfMu. Nevertheless, only about 40% of waqf assets are recorded in the system, highlighting gaps in local data input, human resource capacity, and cross-council integration. The analysis demonstrates that while MPW, MEBP, Dikdasmen, Diktilitbang, and LAZISMU each contribute to the optimization of waqf, the absence of a unified information system hampers efficiency and accountability. Strategically, the study emphasizes four priorities: (1) accelerating the integration of waqf information systems across councils, (2) enhancing digital capacities of human resources, (3) expanding productive waqf through Muhammadiyah’s philanthropic and business networks, and (4) strengthening certification and legal advocacy for asset sustainability. By mapping the necessity of inter-council collaboration, this research highlights that effective waqf governance in Muhammadiyah requires technological innovation and institutional synergy. The findings contribute to the literature on modern waqf governance and practical strategies for Muhammadiyah, a leading waqf manager in Indonesia.
INTENTION TO PAY ZAKAT THROUGH THE USE OF DIGITAL TECHNOLOGY
This study aims to analyse the decision of muzaki’s in paying zakat through the use of digital technology through Lazismu Purworejo by using the Theory of Planned Behavior (TPB) approach. This research uses quantitative method with data collection through questionnaires distributed to 210 respondents. The data were analysed using SPSS 16.0 with multiple linear regression techniques. The results showed that perceived behavioral control has a positive and significant effect on the intention to give zakat, while attitude toward behavior and subjective norm have no significant effect. This finding indicates that muzaki’s intention is more influenced by perceived ease of digital access and ability to pay zakat rather than personal attitude or social pressure. Therefore, Lazismu Purworejo is advised to continue to improve service accessibility and transactions ease to encourage community zakat participation. This research also contributes to the development of the TPB model in the context of religious behavior.
WAQF SECURITIES AS A SUSTAINABLE FINANCING INSTRUMENT FOR SOCIOECONOMIC DEVELOPMENT
This research analyses the development and potential of waqf securities as a modern financial instrument in the context of socio-economic development, particularly in Malaysia. Historically, waqf, a charitable endowment in Islam, has only focused on immovable assets such as land and buildings. However, the rapid development of Islamic finance has seen the emergence of waqf shares, sukuk, Islamic unit trusts, and also Waqf Real Estate Investment Trusts (REITs) shares as instruments for waqf asset development. This research has shown that the use of these instruments can facilitate sustainable development by applying the concept of Islamic social finance in the capital market. This study uses a qualitative method by looking at the Ahmed Dawjee Dadabhoy Wakaf Project and the Seetee Aisah land development project which demonstrate the impact of religious integration and innovation in finance. While much has been achieved, much remains to be done in the areas of governance, public understanding, and alignment with laws and regulations. The proposed strategies to achieve this goal include the expansion of the digital framework, the advancement of regulatory policies, and the development of educational initiatives targeted toward stakeholders.
ZAKAT AS AN ISLAMIC SOCIAL FINANCIAL INSTRUMENT IN ENCOURAGING THE ACHIEVEMENT OF SDGS NUMBER 2
This study discuss the role of zakat as a social Islamic financial instrument in helping achieve the SDGs, particularly No. 2, namely eradicating hunger. This study analyzes through classical literature methods and sources of scientific articles and practical theoretical publications on zakat, Islamic philanthropy, and the Sustainable Development Goals. This study analyzes theoretically and thematically developing zakat's contribution to providing food access, full-time labor, humanitarian enforcement, and reducing food insecurity. The results of this study yield several conclusions and recommendations. First, zakat plays a role in food security through staple food distribution, nutrition programs, and empowerment of food-based micro-enterprises. Third, programs can be digitized through crowdfunding, institutional zakat, and platforms. However, these efforts still face regulatory, literacy, and public trust issues. Zakat has strategic potential with SDG 2 and is synergistic with other SDGs, such as poverty alleviation and improving health. Professional, transparent governance, digital integration, and synergy with agriculture are needed to ensure the sustainable impact of zakat.
DAMPAK DAN TANTANGAN BADAN AMIL ZAKAT NASIONAL (BAZNAS) DALAM PENDISTRIBUSIAN TERHADAP MUSTAHIK
Zakat is one of the pillars of Islam, purifying the heart and developing a truly righteous person. It has comprehensive operational provisions covering the types of assets subject to zakat. In the context of zakat, it is explained that zakat is one component that upholds the values of Maqasid Syariah (Shariah Objectives) with the principle of Hifdzul Mal (Guarding Wealth). Therefore, the researcher's objective in this study is to examine the impact and challenges of the National Zakat Agency (BAZNAS) in the distribution of zakat. First, what are the challenges faced by the National Zakat Agency in the distribution of zakat? Second, what is the social impact/mustahik of zakat on the zakat mechanism implemented by BAZNAS. This research uses a literature review method with a normative approach, relying on secondary data obtained from various legal literature sources and emphasizing the parts of the law that should be applicable and implemented. Therefore, the researcher wants to confirm that BAZNAS does face challenges in managing zakat, which impacts the lives of communities, especially in rural and remote areas.
PERAN EKONOMI ISLAM DALAM MEMBANGUN AKUNTABILITAS PENGENTASAN KEMISKINAN
This study aims to analyze the role of Islamic economics in building accountability for poverty reduction in Indonesia. The methodology adopted is a literature study using a qualitative approach, reviewing relevant literature, scientific articles and empirical data. The results show that poverty reduction in the Islamic perspective does not only focus on material aspects, but also on spiritual and social aspects. Key principles such as justice, solidarity and social responsibility are the basis for implementing Islamic economic policies. Instruments such as zakat, sadaqah and infaq play an important role in wealth redistribution and sustainable empowerment of the poor. Furthermore, Islamic economics emphasizes the need for collaborative efforts between individuals, communities and the state to eradicate poverty. The study also highlights the importance of business ethics, transparency and good governance in the management of social funds so that poverty reduction projects can be carried out effectively and accountably. It is believed that Islamic economics, with its holistic approach that integrates spiritual, social and economic aspects, is able to provide a comprehensive solution to eradicate poverty and create equitable welfare. This research recommends strengthening Islamic economic education and optimizing the management of zakat and taxes to improve the accountability and effectiveness of poverty reduction programs.
ACCOUNTABILITY OF ZAKAT FUND MANAGEMENT AT THE BAITUL MAL GAMPONG IN BANDA ACEH CITY
This study aims to describe and analyze the accountability practices in zakat fund management at the Baitul Mal Gampong (Village-Level Zakat Institution) in Banda Aceh City. This research employed a descriptive qualitative approach, with data collected through in-depth interviews with informants from the Baitul Mal Gampong of Geuceu Iniem Village and Lamdingin Village, as well as a Commissioner from the Baitul Mal Kota (City-Level Zakat Institution) of Banda Aceh. The data were then analyzed using thematic analysis, and data validity was reinforced through triangulation. The findings indicate that the Baitul Mal Gampong has attempted to practice accountability in managing zakat funds. However, several weaknesses were identified, such as the absence of specific, written internal Standard Operating Procedures (SOPs) and accountability processes that have not yet been digitalized, thereby reducing the equity and speed of information availability.
UNCERTIFIED WAQF LAND CONFLICTS: CASE STUDIES FROM EAST ACEH
This study examines the legal and administrative challenges of uncertified waqf land in Gampong Tampur Paloh, East Aceh, where traditional trust-based management systems persist despite modern legal requirements. The study employs a qualitative approach, conducting interviews with local nadzir (waqf administrators), community leaders, and legal experts to explore the factors contributing to the absence of certification. Findings reveal that reliance on oral agreements, bureaucratic complexity, and financial constraints hinder formal registration, leading to disputes over ownership and land use. Generational shifts in attitudes toward legal documentation further complicate waqf management, as younger stakeholders increasingly demand formal proof of ownership. Although deliberation serves as an effective dispute resolution mechanism, the lack of legal enforcement renders waqf land vulnerable to claims. The study highlights the limitations of Law No. 41 of 2004 in rural contexts, where accessibility to certification procedures remains a significant barrier. To address these challenges, integrated interventions such as legal education, simplification of procedures, and financial assistance are recommended to bridge the gap between customary practices and the formal legal framework. This study contributes to the discourse on legal pluralism by illustrating the complexities of integrating customary land management with national regulations and emphasizes the need for policy adaptation that considers local socio-cultural dynamics.
Zakat on Rice Crops: An Analysis of Potential and Public Ignorance
The main objective of this study is to determine and analyze the lack of public understanding of the obligation to pay zakat on agricultural products in Wanakarta Village. This study uses a descriptive, qualitative, or field research design. Ten rice farmers in Wanakarta Village participated in this study as informants who met the requirements to provide information and accurately reflect the research objectives. Data collection was carried out through mixed methods, including in-depth interviews, field observations, and secondary data analysis from reports from zakat institutions and related institutions. Respondents were rice farmers, village officials, and mosque imams who resided in Wanakarta Village. After data collection, data validity was carried out through triangulation methods in interpreting and verifying data from various sources using different approaches and times, both source triangulation. The results of the study found: 1) The potential for agricultural zakat in Wanakarta Village, Lolongguba District, Buru Regency is evidenced by the area of rice fields, the amount of production and harvest, and the level of farmer income. 2) The community does not yet understand zakat from rice farming, which has implications for zakat payments. Lack of outreach by religious institutions, the Zakat Collection Agency (Baznas), and knowledge about zakat are contributing factors. This study recommends synergy between local government institutions, the Indonesian Ulema Council (MUI), the National Zakat Collection Agency (Baznas), Zakat Collection Institutions, and other religious institutions to collectively and intensively educate farming communities about the obligation to pay zakat on rice harvests, including the procedures for calculating it. This will maximize the potential of agricultural zakat, contribute to poverty alleviation, and address socio-economic inequality.
BAZNAS' CONTRIBUTION TO THE ECONOMIC RECOVERY OF MSMES AFTER COVID 19
The COVID-19 pandemic has had a major impact on the MSME sector, More than 60% of MSMEs experienced a drastic decrease in income until business closures. In fact, MSMEs have a strategic role in the economy because of their characteristics of being resilient, locally charge-based, innovative, and oriented to the domestic market. As a zakat, infaq, and alms management institution, BAZNAS has an important role in supporting the economic recovery of the people, especially through the productive zakat program. This program includes providing business capital, training, and entrepreneurship assistance for mustahik. Therefore, it is important to conduct research to examine the extent of BAZNAS' contribution in helping MSMEs mustahik rise after the pandemic, especially in the South Tangerang City area This study uses a descriptive qualitative approach. The data collection technique was carried out through an in-depth interview with the BAZNAS, the mustahik beneficiaries of the MSME program managed by Baznas. In addition, field observation and documentation studies are also used to enrich the data. The research location is focused on the South Tangerang City area, with an analysis unit for mustahik who are active in the economic empowerment program from BAZNAS after the pandemic. The results of the research explain that Baznas distributes zakat to Mustahik MSMEs which have criteria that MSME have a commitment to be economically independent, businesses have the potential to develop and be sustainable, and are willing to take part in training, coaching, and monitoring from BAZNAS. Post-program shows that around 65% of mustahik experience an increase in income between 20-50%, and some are starting to be able to save from the results of their efforts. Some of the successful mustahik no longer receive assistance, and are directed to become prospective muzakki in the long term.
FROM ALMS TO AUTOMATION: Digital Pathways for Zakat Compliance in Shrimp Farming Communities of Desa Cot Muda Itam, Aceh Timur
This study diagnoses low agricultural zakat compliance among shrimp farmers in Desa Cot Muda Itam, Aceh Timur, where only 35.0% of nisab-qualified farmers pay formally, while 62.3% substitute zakat with informal sedekah. Through Participatory Action Research (PAR) with 20 farmers, Baitul Mal staff, and fintech developers, we identify systemic barriers: (1) 78.0% nisab miscalculation due to tidal yield conversions and price volatility, (2) institutional distrust (62.5% rate transparency ≤2/5; 15.7% admin costs exceeding juristic 12.5% cap), and (3) geographical isolation (52.0% face >15km travel). In response, co-design workshops yielded two context-specific digital tools: an SMS Nisab Calculator (integrating real-time shrimp prices/tidal data; reducing calculation time from 45±12 to 2.3±0.7 minutes) and a USSD Blockchain Tracker (#123# balance checks on Nokia 105 phones). An 8-week pilot (n=40) demonstrated transformative outcomes: administrative costs fell to 12.3% (t=5.82, p=0.003), poor-recipient allocation surged to 76.1% (t=9.31, p<0.001), formal compliance rose to 68.5%, and nisab accuracy reached 95.2%. Blockchain logs ensured zero fund misallocation. Adoption intent increased 41.2 percentage points post-workshop (p<0.001). The findings prove that non-compliance stems from institutional misalignment—not religious resistance—and is resolvable through maqasid-aligned digitalization. We propose three scalable principles: sector-specific precision (embedding agrarian variables), grassroots co-ownership (farmer-led prototyping), and institutional integration (blockchain-enforced juristic rules). This model offers a blueprint for transforming Islamic social finance in Global South agrarian economies by converting untapped zakat potential into automated, equitable poverty alleviation.
TOURIST SATISFACTION AND BEHAVIORAL INTENTION IN A HALAL DARK TOURISM CONTEXT: CONCEPTUAL FRAMEWORK
Post-tsunami, Aceh has established tourism as one of the main economic revitalization strategies. However, external shocks in the form of the covid-19 pandemic and slowing global economy have hindered the recovery of the Acehnese tourism sector. The formulation of appropriate strategies requires accurate input about the behavior of dark tourists. Therefore, this study aims to propose a framework for the development of halal dark tourism as a unique value proposition for the Acehnese tourism sector. This framework incorporates the determinants of local and foreign dark tourists’ satisfaction, revisit intention, and word-of-mouth (WOM). The framework can be a useful input for Acehnese tourism stakeholders to attract more tourists to Aceh. The study will use the quantitative survey design, collecting primary data using surveys. The study begins with a review of the literature, followed by the development of the instrument, pre-testing, and preliminary analysis.
PERAN ZAKAT DALAM MEMODERASI PENGARUH IPM, PENGANGGURAN DAN PENDAPATAN TERHADAP KEMISKINAN
This study aims to determine the effects of the Human Development Index, unemployment rate, and per capita income on poverty in Central Java Province from 2018 to 2023, with zakat as a moderating variable. Data were collected from the Central Statistics Agency (BPS) website and the BAZNAS institution for a six-year period from 2018 to 2023. This study employed quantitative methods and Moderated Regression Analysis (MRA) to analyze the data using EViews 10. The results of this study show that the Human Development Index has a negative and significant effect on poverty, the unemployment rate has a positive and significant effect on poverty, and per capita income has a negative and significant effect on poverty. However, the moderating variable of zakat was unable to moderate the relationship between the human development index, unemployment rate, and per capita income on poverty in Central Java Province.
How Is Contribution Of Zakat And Government Expenditure To Economic Growth In Aceh?
This study aims to examine the role of zakat and government spending in driving economic growth in Aceh Province during the 2019–2023 period, by incorporating the Human Development Index (HDI) and the Open Unemployment Rate (TPT) as additional variables. Economic growth is seen as a key indicator of development success and public welfare. Aceh's uniqueness as a special autonomous region that implements Islamic law makes socio-economic instruments such as zakat and government spending important to understand from the perspective of Maqashid Syariah. This study uses a quantitative method through panel data regression that combines data across time and across regions. Secondary data were collected from the Central Statistics Agency (BPS) and Baitul Mal Aceh. The analysis was conducted using multiple linear regression using EViews 12 software to test partial and simultaneous effects. The results show that collectively, the HDI, TPT, zakat, and government spending contribute significantly to Aceh's economic growth. These findings provide policy input for local governments in developing development strategies that are oriented towards social welfare while also aligning with the principles of Maqashid Syariah
ZAKAT ON SAVINGS: A QUALITATIVE CONTENT ANALYSIS OF AWARENESS, RELIGIOSITY, AND COMPLIANCE FACTORS
Zakat on savings is a fundamental aspect of Islamic finance, ensuring the redistribution of wealth and financial responsibility among Muslims. However, compliance with zakat on savings is still low due to limited awareness, varying levels of religiosity, and knowledge gaps. This study examined the existing literature on awareness, religiosity, knowledge, and attitudes related to zakat on savings. The findings of the study show that low awareness, religiosity, knowledge gaps, and attitudes significantly affect zakat compliance, especially in savings. Many Muslims are unaware that zakat disbursement is also mandatory on savings, resulting in low compliance. Strong religious beliefs encourage zakat compliance, but lack of knowledge and misunderstandings hinder compliance towards zakat on savings. Positive attitudes encourage zakat compliance, but institutional efforts are still insufficient. Although zakat on savings is the third largest contributor, it is still underexplored. Increasing awareness, education, and collection strategies are important to increase compliance with zakat on savings
Can Faith-Based Education and Philanthropy Alleviate Poverty in Aceh?
Poverty remains a major challenge for many countries, including Indonesia. When poverty persists, it threatens national resilience. Aceh, which still struggles with high poverty rates, remains the poorest province on the island of Sumatra based on 2020 data. This study re-examines the factors influencing poverty levels in Aceh by highlighting the role of Islamic boarding school education and zakat distribution. The inclusion of Islamic boarding school education is a unique contribution, considering that pesantren are rarely studied as an economic element affecting poverty reduction. Gross Regional Domestic Product (GRDP) is included in this study as a control variable. Using a quantitative approach with panel data regression, this study employs secondary cross-sectional data from 23 districts/cities in Aceh Province combined with time series data from 2017 to 2019 obtained from the Aceh Baitul Mal Agency and the Aceh Provincial Statistics Agency. The findings show that Islamic boarding school education and zakat distribution both have a negative but statistically insignificant effect on poverty levels in Aceh, while the control variable GRDP demonstrates a negative and significant effect. The overall model is highly significant in explaining the variation in poverty, with an adjusted R-squared value of 98%. These results are expected to provide insights for policymakers in designing strategies to alleviate poverty in Aceh Province.
The Perspective of Madhhab Imams on The Distribution of Zakat to Non-Muslim Communities
Zakat is one of the pillars of Islam which has an important role in realizing social justice and the welfare of the people. There are different perspectives among madhhab imams regarding the law on distributing zakat to non-Muslim communities. This arises because there are different interpretations of the propositions of the Qur'an and Hadith relating to zakat. Understanding the views of madhhab imams regarding the law of distributing zakat to non-Muslim communities is important in order to understand the complexity of zakat jurisprudence and its relevance to the increasingly diverse context of modern society. This research is a type of library research with a qualitative approach. Research sources were obtained from various existing literature, namely the Al-Qur'an, hadith, scriptures, books and other research results. The research results show that the perspective of madhhab imams regarding the distribution of zakat to non-Muslims is not absolutely prohibited. Two sects of imams, namely Imam Malik and Imam Syafi'i, strictly do not allow the distribution of zakat to non-Muslims. On the other hand, Imam Abu Hanifah allowed this in the hope of opening their hearts to Islam. Meanwhile, Imam Ahmad bin Hambal allows it only for muaalafatul qalbi.
MARKETING STRATEGY OF MICRO WAQF BANK FINANCING WITHIN THE PESANTREN ECOSYSTEM
The Micro Waqf Bank (BWM) has been operating since 2019 and continues to serve the community around Pesantren Babul Maghfirah. Established to provide access to financing for low-income groups excluded from formal financial institutions, BWM plays a vital role in strengthening financial inclusion. This study employs a descriptive qualitative method to explore the bank’s marketing strategies. The findings reveal that BWM adopts a community-based marketing approach, positioning the pesantren as a center of trust. Promotion activities are carried out through religious leaders, social media platforms such as WhatsApp, and religious forums, all of which help build emotional closeness with the community. These strategies have proven effective in enhancing public trust and expanding financing outreach. Nevertheless, several challenges remain, including limited marketing personnel, difficulties in reaching remote areas, and low levels of Islamic financial literacy among the target community. To address these issues, continuous education and awareness programs are needed to ensure that BWM’s marketing strategies become more effective and sustainable.
Strategi Program Siap Pakai Berbasis Digital untuk Meningkatkan Partisipasi dan Transparansi Pengelolaan di LAZ Sidogiri Sidoarjo
Lack of transparency remains a major challenge in the collection and distribution of zakat in Indonesia, including the limited availability of open information regarding the amount of zakat collected and how the funds are managed and distributed. This study aims to analyze how the implementation of ready-to-use program strategies supported by visual and digital media can enhance participation and transparency in zakat management at LAZ Sidogiri Sidoarjo. This research adopts a qualitative approach using in-depth interviews with both management and donors. The results indicate that presenting programs openly through digital media featuring infographics, visual documentation, and engaging content effectively builds public trust in the institution. This transparency encourages increased donor participation, as they can clearly see how the funds are allocated. The study highlights the importance of utilizing information technology and digital communication strategies to strengthen accountability and improve the effectiveness of fundraising in zakat management institutions.
Zakat dan Pemberdayaan Ekonomi Mustahik: Studi Kasus Baitul Mal Aceh
This article discusses the role of zakat as an instrument for empowering mustahik’s economy, with a case study on Baitul Mal Aceh. As one of the pillars of Islamic economics, zakat not only functions as an act of ibadah maaliyah but also carries a strategic socio-economic dimension in reducing poverty and improving community welfare. This study aims to analyze how zakat management by Baitul Mal Aceh is directed towards mustahik’s economic empowerment and to assess the effectiveness of the implemented programs. The research employs a qualitative approach with descriptive analysis, including observation of empowerment programs and a review of financial reports and activity documents. The findings reveal that Baitul Mal Aceh not only distributes zakat consumptively but also develops productive zakat programs through business capital assistance, skills training, and capacity building for mustahik. These programs have proven to increase the income of some mustahik, although challenges remain in terms of limited mentoring, business monitoring, and financial literacy. The study concludes that productive zakat has the potential to be an effective instrument for poverty alleviation and economic independence, provided that improvements in governance, continuous evaluation, and integration with regional development policies are carried out.
Cash Waqf to Qard-Ḥassan Financing for Islamic Banks in Achieving Maqasid al-Shariah and Social Welfare
This study examines the current practical application of Qard-Ḥassan financing in Islamic finance, along with existing models of Waqf funds being utilized for providing Qard-Ḥassan financing and proposes solutions and recommendations for Islamic banks globally to address the social needs of the community through Cash Waqf to Qard-Ḥassan financing.
ISLAMIC ECONOMICS AND THE CLIMATE CRISIS: RECONSTRUCTING THE ROLES OF ZAKAT AND WAQF IN ACHIEVING ENVIRONMENTAL RESILIENCE
The global climate crisis demands responses from various sectors, including Islamic economics, which holds significant potential in supporting environmental sustainability through social instruments such as zakat and waqf. This study aims to explore the relevance and contribution of Islamic economic approaches in addressing contemporary ecological challenges. Using a literature review method based on five key studies, the findings reveal that: (1) Islamic economic approaches are urgently needed in climate crisis response policies; (2) the function of zakat must be reconstructed to enhance environmental resilience; (3) productive waqf can be recontextualized as an ecological instrument; (4) the integration of zakat and waqf contributes to the development of an Islamic green economic model; and (5) digitalization and social innovation play a strategic role in optimizing zakat and waqf for environmental purposes. These findings indicate that zakat and waqf are not only social and economic tools but also hold ecological value that can be maximized through cross-sector collaboration and digital technology. The study recommends strengthening regulations, enhancing institutional synergies, and developing green zakat and eco-waqf programs as adaptive strategies in addressing climate change.
EMPOWERING MUSTAHIQ THROUGH ZAKAT: THE ROLE OF ENTREPRENEURIAL CHARACTERISTICS AND MENTORING IN BUSINESS SUCCESS AND WELL-BEING
Zakat has great potential not only as an instrument of worship, but also as a transformative force capable of lifting the mustahik from dependence to economic independence. This study examines the role of zakat empowerment, entrepreneurial characteristics, and mentoring in contributing to business success and their impact on the welfare of mustahik in Aceh Province, Indonesia. As a region that integrates Sharia values into its socio-economic life, this research employed a quantitative approach, collecting primary data through questionnaires distributed to 120 beneficiaries. Path analysis was used to trace direct and indirect relationships between variables. The results indicate that the three main factors of zakat empowerment, entrepreneurial character, and mentoring have a significant influence on business success. This success, in turn, positively impacts the improvement of beneficiaries' well-being. These findings confirm that effective empowerment does not solely depend on financial assistance but also on strengthening individual capacity and sustained mentoring. The practical implications of these findings suggest that a holistic zakat empowerment model, which combines spiritual values, character building, and technical support, is the most relevant approach in promoting sustainable and meaningful social change for the lives of mustahik. Additionally, zakat institutions, particularly in sharia-based regions, should strengthen empowerment programmes that are not only charitable but also transformational.
EFFECTIVENESS OF ZAKAT MANAGEMENT IN MALAYSIA: CITATION, TAX, DISTRIBUTION, AND DIGITALIZATION
The zakat management system in Malaysia has developed well among the community through a systematic and strategic approach. This paper analyzes how this systematic approach has had an impact from various angles, including zakat collection strategies, the implementation of tax incentives, the effectiveness of distribution to the eight categories of asnaf, and the use of technology to facilitate payment and monitoring. Zakat institutions in each state play a crucial role in building public trust through honest management, transparent reporting, and zakat distribution programs. This paper also examines how tax incentives serve as an incentive to increase Muslim participation in zakat obligations, while supporting a balance between religious obligations and civic responsibilities. Additionally, digital transformation in zakat management has facilitated easier access and more effective communication of information. Overall, the zakat system in Malaysia not only functions as an individual act of worship but also as a significant tool for social and economic development.
EFFECTIVENESS OF CASH WAQF MANAGEMENT: A CASE STUDY ON THE MUVID PROGRAM BY BAITULMAAL MUAMALAT
The management of cash waqf through a community empowerment-based café business is a relatively rare model in Indonesia's productive waqf practice. The Muvid program, initiated by Baitulmaal Muamalat South Sulawesi, offers a unique approach by combining cash waqf fund management with entrepreneurship training and job creation. This study aims to assess the effectiveness of cash waqf management, the implementation of core management functions, and the socioeconomic impact of the Muvid program on its beneficiaries. Using a qualitative case study method, data were collected through interviews, observations, and documentation, then analyzed inductively. The results show that the Muvid program operates effectively, with all management functions planning, organizing, actuating, and controlling being carried out appropriately. The program has positively influenced beneficiaries by enhancing their skills, income, and economic independence, particularly among youth and underprivileged communities. The study concludes that productive cash waqf, when managed effectively, can serve as a strategic instrument for sustainable economic empowerment and can be replicated by other waqf institutions
MODEL KEMAMPANAN KEWANGAN UNIVERSITI BERPANDUKAN MODEL KEWANGAN SOSIAL ISLAM: KAJIAN PUSAT ALUMNI
Kemampanan kewangan merupakan aspek penting dalam memastikan kelangsungan dan daya saing sesebuah universiti, khususnya institusi pengajian tinggi awam (IPTA) yang semakin terkesan dengan pengurangan peruntukkan kerajaan. Kajian ini bertujuan untuk membangunkan satu model kemampanan kewangan universiti yang berteraskan prinsip kewangan sosial Islam, dengan memberi fokus kepada peranan strategik Pusat Alumni. Pendekatan Kewangan Sosial Islam seperti zakat, wakaf, sedekah dan infak dilihat mampu menjadi sumber alternatif yang sah, mampan dan patuh syariah dalam menyokong keperluan kewangan universiti awam. Kajian ini menggunakan reka bentuk kualitatif melalui temubual separa berstruktur melibatkan pemberi maklumat utama daripada pengurusan universiti, pegawai Pusat Alumni, serta pakar dalam kewangan Islam dan pengurusan institusi pendidikan tinggi. Data yang diperoleh dianalisis secara tematik untuk mengenal pasti potensi, cabaran serta strategi pelaksanaan model ini. Dapatan kajian dijangka dapat menghasilkan kerangka Model Kewangan Sosial Islam yang praktikal, bersesuaian dengan konteks operasi Pusat Alumni dan dapat diaplikasikan secara meluas oleh universiti lain di Malaysia. Implikasinya, model ini bukan sahaja menyumbang kepada kelestarian kewangan institusi, malah memperkukuh hubungan alumni-universiti dalam kerangka nilai Islam.
CASH WAQF AS THE ISLAMIC FINANCIAL INSTRUMENT FOR SUSTAINABLE SOCIETY DEVELOPMENT
The purpose of this study is to explore the Cash Waqf potency in Indonesia to beneficiaries and how it affects long-term social development. Indonesia has significant potential for waqf granted by the waqif, as well as cash waqf. However, most Indonesians' concept of waqf is still restricted to land wakf, mosques, educational facilities, and so on. This study draws on secondary data sources pertaining to the influence of Cash Waqf on societal welfare and development produced by many experts and drawn from diverse works of literature. The research discussion is descriptive in nature. The study's goal is to learn about the multiplier management of cash waqf in Indonesia and its impact on long-term social development. It demonstrates how, through the multiplier impact of cash waqf, CWs can affect societal development in economics, commerce, and social sectors such as education and health care. CWs are also integrated with the Sustainable Development Goals (SDGs).
Zakat dan Wakaf Perspektif Hadis: Instrumen Sosial-Spiritual untuk Kesejahteraan Umat
This article examines zakat and waqf from the perspective of hadith as socio-spiritual instruments that serve to build the welfare of the ummah. Through an analysis of the chain of transmission (sanad), textual content (matan), and the historical context of hadiths on zakat and waqf, this study demonstrates that Islam has from the outset established the foundation of economic distribution alongside the sustainability of social benefits. On the other hand, contemporary realities in Indonesia show that the management of zakat by the National Zakat Agency (BAZNAS) and the management of waqf by the Indonesian Waqf Board (BWI) still face significant challenges. This article proposes the integration of zakat and waqf management through the paradigm of Islamic circular economy by leveraging digitalization, public literacy, and institutional synergy. The study concludes that hadiths on zakat and waqf are not merely normative texts but also serve as ethical and strategic guidelines in realizing socio-economic justice in the modern era.