Zakat and the Growth of Indonesia's Islamic Economy

The Indonesian Islamic economy and the collection of Zakat, Infak, Sedekah, and Wakaf (ZISWAF) are intertwined, forming a symbiotic relationship that strengthens both. In a global economy marked by uncertainty, integrating the real sector with social redistribution is crucial, and the Islamic economy, with ZISWAF as its foundation, offers a robust and inclusive framework for economic resilience. ZISWAF serves as a vital fiscal pillar and wealth distribution instrument within the Islamic economic system, promoting social justice, poverty alleviation, and economic stability. M. Umer Chapra's work highlights ZISWAF not just as charity but as a mechanism for distributive justice, preventing wealth concentration and ensuring systematic wealth flow to vulnerable groups. This aligns with the historical trend of positive growth in Indonesia's Islamic economy over the past five years. According to the State of the Global Islamic Economy Report and Bank Indonesia's Halal Value Chain data (2021–2025), the Halal Value Chain sector saw average growth of 3.5% to 5.3% between 2021 and 2023. This figure is projected to surge to 6.21% in 2024 and 2025, outpacing national economic growth. This expansion is driven by sectors like halal food and beverages, modest fashion, Muslim-friendly tourism, and a growing Islamic banking sector. Concurrently, national ZISWAF collection data from BAZNAS RI's Main Report (2021–2025) shows a remarkable increase. Collections rose consistently from IDR 14 trillion in 2021 to IDR 22 trillion in 2022, reaching IDR 32 trillion in 2023, and IDR 40.8 trillion in 2024. By the end of 2025, national ZIS-DSKL collection hit a new record of IDR 44.69 trillion, a 9.54% increase from the previous year, with disbursements totaling IDR 44.28 trillion. The strong positive correlation between Islamic economic growth and ZISWAF collection volume suggests that the expansion of Sharia-based economic activities naturally broadens the base for ZISWAF funds, as noted by Monzer Kahf in The Islamic Economy.