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All Journal Borneo International Journal of Islamic Studies
Yuri Arlin Thahir
Institut Agama Islam Negeri Sultan Amai Gorontalo
Religion Chemistry Economics, Econometrics & Finance Education Languange, Linguistic, Communication & Media Social Sciences

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Enhancing the Effectiveness of Zakat Institutions in Indonesia: Governance Challenges and Opportunities for Sustainable Poverty Alleviation Yuri Arlin Thahir; Muhibbuddin Muhibbuddin
Borneo International Journal of Islamic Studies Vol 7 No 2 (2025): Borneo International Journal of Islamic Studies, Vol. 7(2), November 2025
Publisher : Universitas Islam Negeri Sultan Aji Muhammad Idris Samarinda

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21093/bijis.v7i2.10960

Abstract

Despite Indonesia’s substantial zakat potential, poverty remains a persistent socioeconomic challenge, with the national poverty rate reaching 9.22% in 2024. Zakat has been recognized as an important instrument within the Islamic economic framework to support poverty alleviation and sustainable development. This study examines the role of zakat institutions in Indonesia and identifies institutional challenges and opportunities to enhance their contribution to poverty reduction. Using a qualitative literature review approach and content analysis, this study analyzes secondary data from scholarly articles, books, institutional reports, and related sources. The analysis focuses on three dimensions: zakat distribution mechanisms, institutional governance, and the effectiveness of mustahik empowerment programs. The findings indicate that zakat institutions continue to face challenges related to limited public trust, inadequate transparency and accountability, and the preference among muzakki to distribute zakat directly rather than through formal institutions. These conditions reduce the institutional capacity of zakat to generate broader socioeconomic impact. This study argues that strengthening governance, expanding cross-sector collaboration, enhancing institutional capacity, and adopting digital technologies are essential strategies for developing more inclusive and sustainable zakat-based empowerment programs.
Co-Authors Muhibbuddin Muhibbuddin