This study aims to analyze the role of zakat in the Indonesian economy, especially as a poverty alleviation strategy. Zakat as one of the instruments of Islamic economics has great potential in supporting economic and social development. Although zakat plays an important role in the welfare of society, its realization and management still face various challenges. This study uses a qualitative method with a literature review approach, namely analyzing various literature from various sources related to fiscal policy, zakat, and Islamic economic concepts. By using the literature study method, this study found that productive zakat has a major impact on reducing poverty levels and strengthening the economic resilience of society. In addition to being a form of worship, zakat also functions as a fair and sustainable redistribution of wealth, which if managed properly, can be an important element in Islamic fiscal policy and a strategy for national economic development.
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