The Role of Zakat and Waqf Management in Strengthening Community Economic Empowerment

Abstract

This study examines the role of zakat and waqf management in strengthening community economic empowerment through sustainable and participatory Islamic social finance approaches. The research aims to analyze how zakat and waqf institutions contribute to socio-economic empowerment, identify institutional challenges, and explore governance strategies capable of enhancing empowerment effectiveness. This study employed a qualitative method using a case study design because the approach enables an in-depth exploration of institutional practices, governance systems, and beneficiary experiences within real social contexts. The research was conducted in several zakat and waqf institutions located in Jakarta and West Java, Indonesia, selected due to their active implementation of productive empowerment programs and institutional diversity. The study involved twelve purposively selected informants consisting of institutional leaders, academics, government representatives, financial consultants, community leaders, and beneficiaries, chosen based on their expertise and direct involvement in empowerment activities. The findings reveal that productive zakat and waqf management significantly improves community economic resilience through entrepreneurship support, capacity building, and collaborative governance. The study recommends strengthening institutional professionalism, digital innovation, transparency, and stakeholder collaboration to enhance sustainable Islamic social finance empowerment programs.