Indonesian Agencies Boost Family Economy Through Zakat Program

Indonesia's national zakat agency, Baznas, is partnering with the National Population and Family Planning Agency (BKKBN) to enhance its Zakat Community Development (ZCD) program. The initiative aims to leverage zakat, infak, and sedekah funds to foster economic independence, combat stunting, and strengthen family resilience.

Baznas Chairman Sodik Mudjahid highlighted the collaboration's focus on optimizing ZIS funds for family quality and poverty eradication. "Today we are strengthening the cooperation that has been ongoing with our flagship programs, all of which are essentially for improving family quality, eradicating poverty, and increasing family welfare," he stated at the program's launch in Jakarta.

The ZCD program integrates economic empowerment with health, education, social, and religious aspects within communities. Pilot projects in five provinces from 2024 to 2026 demonstrated success in helping beneficiary families develop their economic potential through group-based micro-enterprise support. "We met and dialogued with families who received support from BKKBN and Baznas. And they said, thank God, it's working, we just need stronger mentoring," one participant shared.

Idy Muzayyad, Baznas Commissioner for Distribution, Utilization, and Empowerment, added that ZCD also targets extreme poverty reduction. The program has so far distributed Rp1.391 billion to 23 groups, with plans to expand to 11 districts across eight provinces. "The ZCD program is community development that integrates aspects of preaching, economy, education, health, and humanitarianism comprehensively, funded by zakat, infak, sedekah, and other religious social funds," he explained.

BKKBN Head Wihaji expressed hope that the synergy with Baznas would bolster family economic independence through the Family Planning Acceptor Income Improvement Business (UPPKA). This program, reaching 37,000 family planning groups nationwide, has seen increased business activity, with some groups in South Sumatra and Central Java reporting turnovers exceeding Rp100 million. "The spirit is just one: improving family economy and having a better, quality family," Wihaji said.