Modernizing Zakat and Waqf Management in Indonesia: A Legal And Governance Perspective
Keywords:
Digital Zakat, Waqf Regulation, Corporate Governance, Normative Legal Research
Abstract
Zakat and waqf are vital tools for poverty alleviation in Islamic countries. However, their management often fails to keep pace with technological advancements, so legality and good governance cannot be seen directly by the muzakki. In Indonesia, the largest Muslim-majority country, the digitalization of zakat and waqf has emerged as a significant reform, supported by regulations to improve transparency, accountability, and efficiency. This study examines the integration of corporate governance principles in digital zakat and waqf management, focusing on the regulatory framework that governs these practices. Employing normative legal research, this study analyzes Indonesia’s Zakat Management Law (No. 23 of 2011) and the Waqf Law (No. 31 of 2004), alongside case studies of digital zakat and waqf platforms. The findings highlight that these regulations mandate technology to enhance monitoring, reporting, and fund distribution. Adopting corporate governance frameworks, including digital fundraising, real-time tracking, and performance audits, has substantially increased public trust and participation in zakat and waqf. Nevertheless, challenges remain, such as regulatory gaps in monitoring non-compliance and integrating private sector innovations. This research underscores the importance of strengthening regulatory oversight and adopting global best practices to optimize the socio-economic impact of zakat and waqf in Indonesia.
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Anwar Ajim Harahap, Zul, Muhammad Ridwan Al-Manāhij, Jurnal Kajian Hukum Islam, Muh Nashirudin, and Almira Keumala Ulfah. “Hilirisation Agricultural Zakat as a Basis for Increasing Community Income.” Management of Zakat and Waqf Journal (MAZAWA) 6, no. 1 (December 20, 2024): 1–18. https://doi.org/10.15642/MZW.2024.6.1.1-18.
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Fauzia, Amelia. Faith and the State : A History of Islamic Philanthropy in Indonesia. Brill, 2013.
Fuadi, Fuadi, Ramadhan Razali, Reza Juanda, Arliasnyah Arliasnyah, Nurul Aulia, Muhammad Ikram, and Putri Ramadhani. “IMPLEMENTATION OF HALAL VALUE CHAIN IN BLOCKCHAIN-BASED HALAL INDUSTRY IN ACEH PROVINCE.” International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS) 2, no. 5 (October 20, 2022): 793–802. https://doi.org/10.54443/IJEBAS.V2I5.413.
Ghassan, Hassan Belkacem, and Essam Hashim Al-Jeefri. “Islamic Theoretical Intertemporal Model of the Current Account.” Arab Economic and Business Journal 11, no. 1 (June 1, 2016): 86–92. https://doi.org/10.1016/J.AEBJ.2016.03.002.
Hadi, Rahmini, Yoiz Shofwa Shafrani, Dewi Lamela Hilyatin, Sugeng Riyadi, and Basrowi. “Digital Zakat Management, Transparency in Zakat Reporting, and the Zakat Payroll System toward Zakat Management Accountability and Its Implications on Zakat Growth Acceleration.” International Journal of Data and Network Science 8, no. 1 (December 1, 2024): 597–608. https://doi.org/10.5267/j.ijdns.2023.8.025.
Hadiyanto, Andy, Kinkin Yuliaty Subarsa Putri, and Luthfi Fazli. “Religious Moderation in Instagram: An Islamic Interpretation Perspective.” Heliyon 11, no. 4 (February 28, 2025): e42816. https://doi.org/10.1016/J.HELIYON.2025.E42816.
Hakim, Muhammad Lutfi. “Islamic Law and Society in Indonesia: Corporate Zakat Norms and Practices in Islamic Banks , by Alfitri.” Bijdragen Tot de Taal-, Land- En Volkenkunde / Journal of the Humanities and Social Sciences of Southeast Asia 179, no. 1 (January 1, 2023): 115–18. https://doi.org/10.1163/22134379-17901001.
Lee, Amos Wei Lun, Kentaroh Toyoda, Ivan Yeow, Zhiquan Yeo, Jonathan Sze Choong Low, and Wen Feng Lu. “Blockchain-Enabled Carbon Emission Management System in a Multi-Tier Supply Chain.” Procedia CIRP 116 (January 1, 2023): 233–38. https://doi.org/10.1016/J.PROCIR.2023.02.040.
Matenga, A.E, and K Mpofu. “Blockchain-Based Product Lifecycle Management Using Supply Chain Management for Railcar Remanufacturing.” Procedia CIRP 116 (January 1, 2023): 486–91. https://doi.org/10.1016/J.PROCIR.2023.02.082.
Muhammad, Sani Adamu, and Ram Al-Jaffri Saad. “Moderating Effect of Attitude toward Zakat Payment on the Relationship between Moral Reasoning and Intention to Pay Zakat.” Procedia - Social and Behavioral Sciences 219 (May 31, 2016): 520–27. https://doi.org/10.1016/J.SBSPRO.2016.05.029.
Nashirudin, Muh, Ramadhan, and Almira Keumala Ulfah. “Strengthening Maqāṣid Al-Sharī’ah Values in Halal Traceability: Evidence and Analysis of Block Chain Based on Halal Supply Chain Applications.” Al-Manahij: Jurnal Kajian Hukum Islam 18, no. 1 (May 14, 2024): 95–108. https://doi.org/10.24090/MNH.V18I1.9883.
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Ronaldo, Reza, Abiyajid Bustami, Edy Setiawan, and Sumadi Buton. “The Role of Zakat and Waqf in the Economic Empowerment of the People in the Digital Era,” n.d. https://doi.org/10.62872/1m4yqr95.
Saad, Ram Al Jaffri, Norazita Marina Abdul Aziz, and Norfaiezah Sawandi. “Islamic Accountability Framework in the Zakat Funds Management.” Procedia - Social and Behavioral Sciences 164 (December 31, 2014): 508–15. https://doi.org/10.1016/J.SBSPRO.2014.11.139.
Sarif, Akbar, and Rini Ariyanti. “Digital Innovation in Zakat and Waqf Management: Case Study on Sharia Crowdfunding Platforms.” International Journal of Health, Economics, and Social Sciences (IJHESS) 7, no. 1 (2025): 410–17. https://doi.org/10.56338/ijhess.v7i1.6942.
Sumarliah, Eli, Tieke Li, Bailin Wang, Fauziyah Fauziyah, and Indriya Indriya. “Blockchain-Empowered Halal Fashion Traceability System in Indonesia.” Int. J. Inf. Syst. Supply Chain Manag. 15, no. 2 (April 1, 2022). https://doi.org/10.4018/IJISSCM.287628.
“The Role of Transparency in Disaster Relief and Emergency Funding - FundsforNGOs.” Accessed May 11, 2025. https://www2.fundsforngos.org/articles-searching-grants-and-donors/the-role-of-transparency-in-disaster-relief-and-emergency-funding/.
Ulfah, Almira Keumala, Ramadhan Razali, and Sherif Mohamed A. Ismail. “Unveiling the Power of Good Corporate Governance: The Key to Effective Zakat Administration.” Filantropi : Jurnal Manajemen Zakat Dan Wakaf 6, no. 1 (April 21, 2025): 1–9. https://doi.org/10.22515/FINALMAZAWA.V6I1.10104.
Published
2025-06-27
How to Cite
Nashirudin, M., Razali, R., & Ulfah, A. (2025). Modernizing Zakat and Waqf Management in Indonesia: A Legal And Governance Perspective. Mazahib, 24(1), 198-220. https://doi.org/10.21093/mj.v24i1.9419
Section
Articles
Copyright (c) 2025 Muh. Nashirudin, Ramadhan Razali, Almira Keumala Ulfah
This work is licensed under a Creative Commons Attribution 4.0 International License.
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