Zakat Management for Poverty Reduction and Inclusive Economic Development: The Role of Institutional Governance and Productive Empowerment

Zulfatun Anisah

doi:10.53491/papua.v3i2.2279

Authors

Zulfatun Anisah Universitas Negeri Surabaya, Indonesia

DOI:

https://doi.org/10.53491/papua.v3i2.2279

Keywords:

Zakat Management; Poverty Reduction; Productive Zakat; Islamic Social Finance; Inclusive Economic Development.

Abstract

Zakat plays an important role in Islamic social finance as an instrument for wealth redistribution, poverty alleviation, and inclusive economic development. However, its effectiveness depends not only on the amount of funds collected and distributed but also on the quality of institutional governance and the sustainability of economic empowerment programs. This study aims to examine the role of zakat management in reducing poverty and supporting inclusive economic development, with particular attention to institutional governance, productive zakat, and socioeconomic empowerment. This research employs a qualitative descriptive-analytical approach based on a review of relevant academic literature, institutional publications, and regulatory documents. The data are analyzed thematically by examining institutional accountability, distribution effectiveness, productive economic empowerment, and the contribution of zakat to inclusive development. The analysis indicates that effective zakat management can strengthen poverty alleviation through targeted distribution, productive assistance, entrepreneurship development, and continuous mentoring for mustahik. Furthermore, productive zakat has the potential to improve household income, support microenterprise development, and expand economic participation among disadvantaged communities. Nevertheless, these contributions require transparent governance, professional management, accurate beneficiary identification, and stronger coordination between zakat institutions and relevant stakeholders. This study highlights that zakat should be positioned not merely as a charitable instrument but as a strategic mechanism of Islamic social finance for promoting equitable opportunities, economic resilience, and sustainable inclusive development.

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