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Journal : international journal of community service implementation

The Contribution of Islamic Economics to the Equal Distribution of National Income in Padangsidimpuan Ahmad Toib Daulay; Winda Sari Siregar; Jamudi Jamudi; Abd Halim Dalimunthe; Uswatun Hasanah
International Journal of Community Service Implementation Vol. 4 No. 1 (2026): IJCSI June 2026
Publisher : CV. AFDIFAL MAJU BERKAH

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55227/ijcsi.v4i1.785

Abstract

Inequality in income distribution remains a structural problem in national economic development, including in mid-level urban areas such as Padangsidimpuan City. Islamic economics exists not only as a normative economic system but also as a practical approach that emphasizes distributive justice, social solidarity, and support for vulnerable groups. This study aims to analyze the contribution of Islamic economics in promoting equitable distribution of national income at the local level through a case study in Padangsidimpuan City. The research method used is descriptive qualitative, with data collection techniques through interviews, observations, and documentation studies of Islamic economic institutions such as BAZNAS, private zakat institutions, sharia cooperatives, and sharia-based micro, small, and medium enterprises (MSMEs). The results show that Islamic economic instruments, particularly zakat, infaq, sadaqah, and sharia financing, contribute significantly to increasing the income of the poor, expanding access to business capital, and reducing economic inequality. However, this contribution remains partial due to institutional limitations, low sharia economic literacy, and weak integration with regional development policies. This study recommends strengthening synergies between local governments and Islamic economic institutions as a sustainable strategy for income equality.
The Contribution of Islamic Economics to the Equitable Distribution of National Income Azhari Syahfutra Harahap; Uswatun Hasanah
International Journal of Community Service Implementation Vol. 4 No. 1 (2026): IJCSI June 2026
Publisher : CV. AFDIFAL MAJU BERKAH

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55227/ijcsi.v4i1.971

Abstract

Income distribution inequality remains one of the major challenges in economic development, contributing to poverty, social disparities, and economic instability. Although economic growth continues to increase, achieving equitable welfare distribution remains a significant concern, particularly in developing countries such as Indonesia. In this context, Islamic economics offers a distributional framework based on the principles of justice, balance, and social responsibility through various distributive economic instruments. This study aims to analyze the contribution of Islamic economics to the equitable distribution of national income and to examine the role of Islamic economic instruments in reducing economic inequality within society. This research employs a library research method with a descriptive qualitative approach. Data were collected from various sources, including books, scientific journals, previous studies, official documents, and regulations related to Islamic economics. Data analysis was conducted through data reduction, data presentation, and conclusion drawing. The findings indicate that Islamic economics significantly contributes to equitable income distribution through instruments such as zakat, infaq, sadaqah, productive waqf, and profit-sharing mechanisms. These instruments function as wealth redistribution mechanisms capable of reducing economic disparities, improving social welfare, expanding access to economic resources, and promoting inclusive and sustainable economic development. Furthermore, the profit-sharing system in Islamic economics provides a fairer alternative to the interest-based system by emphasizing proportional risk and profit sharing. This study concludes that optimizing Islamic economic instruments can serve as an effective strategy for achieving a more equitable national income distribution and supporting comprehensive social welfare.