INTEGRATING ZAKAT MANAGEMENT INTO EKONOMI MADANI: A LITERATURE REVIEW ON CONTRIBUTIONS TO SUSTAINABLE DEVELOPMENT GOALS (SDGs)

Abstract

The integration of zakat management into the framework of Ekonomi Madani presents a promising avenue for achieving Sustainable Development Goals (SDGs), yet significant challenges hinder its optimization. Despite its transformative potential, issues such as weak governance structures, lack of transparency, insufficient public trust, and inefficiencies in fund utilization persist, limiting zakat's impact on poverty alleviation, inequality reduction, and community empowerment. Furthermore, the implementation of Ekonomi Madani itself faces critical barriers, including inadequate institutional coordination, fragmented regulatory frameworks, and limited synergy between stakeholders, which further complicates the effective integration of zakat into sustainable development initiatives. This study aims to review the contributions of zakat to key SDGs such as poverty alleviation, reduced inequality, quality education, economic growth, and good health; to review the challenges and propose recommendations for effective zakat management; and to examine opportunities for enhancing collaboration among stakeholders. Employing a systematic and data-driven methodology, this study utilized Scopus AI to conduct a comprehensive review of peer-reviewed literature published between 2011 and 2025. Key findings reveal that zakat significantly improves the Human Development Index (HDI) of recipients, fosters economic empowerment through entrepreneurial ventures, and enhances access to education and healthcare services. Additionally, the adoption of technology, such as blockchain and digital platforms, has been shown to streamline zakat collection and distribution, ensuring greater transparency and accountability. Despite these contributions, challenges such as mistrust in zakat institutions, inefficiencies in fund allocation, and gaps in regulatory oversight remain. The study underscores the importance of fostering collaboration among government agencies, religious institutions, and community organizations to optimize zakat's impact within the Ekonomi Madani framework. The implications of this study highlight the alignment of zakat with Maqasid Sharia and contemporary development agendas, while practical recommendations emphasize the need for robust governance mechanisms and technological innovations. This study contributes to both academic discourse and policy formulation, offering actionable insights for stakeholders to leverage zakat as a catalyst for sustainable development. Future research should explore cross-country comparisons and the role of zakat in addressing emerging global challenges, particularly in strengthening the implementation of Ekonomi Madani principles.