Islamic Social Finance Integration: Bridging Zakat, Waqf, and Microfinance for Poverty Alleviation

Abstract

This study aims to develop an integrative framework of Islamic social finance by bridging zakat, waqf, and Islamic microfinance to enhance sustainable poverty alleviation. Employing a qualitative approach, the research adopts a multiple case study design to capture in-depth institutional dynamics and cross-sectoral interactions, chosen for its ability to explore complex governance and operational phenomena in real-life contexts. The study is conducted in Indonesia, particularly in Jakarta, West Java, and Yogyakarta, due to their advanced Islamic social finance ecosystems and institutional diversity. Data were collected from fifteen purposively selected informants, including policymakers, institutional managers, and practitioners, chosen based on their expertise and direct involvement in integration initiatives. The findings reveal that although integration practices have emerged, they remain constrained by institutional fragmentation, regulatory misalignment, and limited technological infrastructure. However, integrated models demonstrate significant potential in combining social protection, asset development, and financial empowerment. The study recommends strengthening governance coordination, adopting digital integration platforms, and enhancing multi-stakeholder collaboration to optimize impact and scalability of Islamic social finance systems.